CBA Now Offering Prefab & Tiny Home Loans in Australia – What This Means for You
Australia’s housing market is evolving, and the Commonwealth Bank of Australia (CBA) has just made a major shift—it’s now offering loans for prefabricated (prefab) homes, a sector that banks traditionally overlooked.
For years, one of the biggest hurdles to buying a tiny home or modular home has been financing. Many buyers were forced to pay upfront or rely on high-interest personal loans because major banks wouldn’t offer home loans for prefab dwellings. But with CBA’s new prefab loan policy, this is changing—and it could open up huge opportunities for buyers and investors.
What’s Changing? CBA’s Prefab Home Loan Policy Explained
Until now, prefab home buyers had to fund up to 90% of construction costs upfront before securing a loan. Under CBA’s new policy:
• Progress payments are now available before the home is affixed to land, covering up to 60% of the total contract price.
• If you work with a CBA-accredited prefab manufacturer, this increases to 80% of the contract price.
• Loans apply to prefabricated homes that will be permanently affixed to land.
This means prefab home buyers now have access to traditional home loans rather than personal loans, making it far easier to finance a tiny home. (Source: CBA Newsroom)
What This Means for You as a Tiny Home Buyer
If you’ve been considering a tiny home or prefab investment, here’s why this shift is a game-changer:
You may now qualify for a traditional home loan. Until now, prefab home buyers had very few financing options, often relying on cash payments or high-interest personal loans. With CBA backing prefab financing, buyers can now secure lower interest rates and more flexible repayment terms.
More affordable upfront costs. Instead of needing 90% upfront, buyers can now secure financing with progress payments, making prefab homes a much more attainable option.
More competition among banks = better deals for buyers. CBA is the first major bank to back prefab home financing, but if other lenders follow, buyers could see even better financing options in the future. (Source: AFR)
How Tiny House Agency Can Help You Navigate This New Financing
At Tiny House Agency, we work directly with trusted prefab home builders and accredited manufacturers, so you don’t have to navigate the process alone. If you’re interested in securing financing through CBA’s new program, we can:
• Connect you with lenders who understand prefab home loans.
• Match you with CBA-approved builders to help you qualify for the highest possible financing percentage.
• Guide you through the loan process so you understand exactly what’s required.
If you’re unsure whether your ideal tiny home qualifies for financing, get in touch with us, and we’ll help you find the best path forward.
How CBA’s Tiny Home Loans Will Change the Housing Market
CBA’s new policy is a major shift in the Australian housing market, making prefab homes more accessible and giving buyers real alternatives to traditional housing.
Faster Construction & Lower Costs – Prefab homes can be built in as little as 16 weeks, compared to 6-9 months for a traditional home. This means buyers can move in sooner and avoid long construction delays. (Source: Summit Homes)
More Financing = More Demand – With prefab homes now backed by major bank loans, demand for tiny homes and modular builds is expected to rise. This could increase resale values and investment potential. (Source: The Australian)
Potential for Other Banks to Follow – While CBA is the first to back prefab financing, industry experts predict that other major banks could follow, increasing competition and improving loan options for tiny home buyers. (Source: SMH)
Should You Buy A Tiny Home Now?
If you’ve been waiting for better financing options to buy a tiny home or prefab house, this is your chance. With CBA leading the way, 2025 could be the year prefab housing goes mainstream. Tiny House Agency specialises in helping buyers find the best prefab homes, financing solutions, and investment opportunities.
• Browse move-in-ready tiny homes: Available Tiny Homes
• Explore custom build options: Tiny House Custom Build Services
• Speak with us about financing eligibility: Contact Us
📩 Get in touch today to explore your best financing and prefab home opportunities!