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Easier Financing for Prefabricated Homes

CBA Makes Financing Prefabricated Granny Flats Easier

Andrew Scott
February 15, 2025

Commonwealth Bank Makes Financing Prefabricated Homes & Granny Flats Easier

February, 2025.

The Commonwealth Bank of Australia (CBA) has introduced new loan terms for prefabricated homes, improving financing for granny flats and small homes in New South Wales and Victoria. This means that architecturally designed granny flats are now easier to fund.

CBA’s New Financing Approach

Previously, borrowers had to cover 90% of construction costs upfront. CBA now offers progressive payment financing, covering up to 80% of costs before installation. This policy, the first of its kind from a major Australian bank, takes effect this quarter. Loans of up to $1.5 million are available for homes over 30 square metres.

Easier Financing for Prefabricated Homes
The Popstar Luxury Granny Flats by Pleysier Perkins Mini Homes
Impact on Luxury Granny Flats in NSW and Victoria

Pleysier Perkins Mini Homes can serve as a luxury garden studio, teenage retreat, or granny flat. The new financing terms streamline the lending process for homeowners looking to add a premium prefabricated dwelling.

CBA prefab loans
The Popstar Luxury Granny Flats By Pleysier Perkins Mini Homes, measuring 60 sqm

Financing Options For Luxury Granny Flats

- Traditional home loan – secured against an existing property.

- Personal loan – faster approval but higher interest rates.

- Mortgage refinancing or extension – uses home equity for lower rates.

- Government grants – sometimes available for sustainable and energy-efficient projects.

CBA prefab loans
The Popstar Luxury Granny Flats by Pleysier Perkins Mini Homes

Future of Prefabricated Luxury Housing

CBA’s initiative aligns with the Albanese government’s goal of 1.2 million new homes by 2029. A Productivity Commission report found prefabrication reduces costs by 20% (not factoring in transport costs though, as these can vary substantially) and cut project timelines by half. Faster completion allows homeowners to enjoy their luxury granny flats sooner, which can mean savings on often higher interest payments or other costs during construction.

Homeowners now have expanded options for financing high-end prefabricated homes, enhancing accessibility to quality, architecturally designed living spaces, especially luxury granny flats!

For more information, see the full press release by CBA.

About Pleysier Perkins Mini Homes

Pleysier Perkins Mini Homes delivers high-quality architecture to gardens in Melbourne and beyond. With over twenty years of experience in residential and prefabricated architecture, they design and deliver ideal Mini Homes through a seamless, four-stage process. Our offerings include pre-designed Models and Custom Designs, providing flexible solutions to suit all requirements.

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