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Can you get a mortgage on a modular home?

From Modular Living Australia — the independent knowledge base Last updated: 21 Jul 2026

Generally yes, if the home will be fixed to land you own — but the loan structure differs from a standard construction loan, and not every lender accommodates it.

Why it is different §

A standard Australian construction loan releases funds in stages tied to work completed on your land: slab, frame, lock-up, fit-out, completion. A valuer confirms each stage before the corresponding payment is released.

Modular construction moves a large share of the value into a factory, on premises the lender has no security over, before anything appears on your block. From the lender's perspective, money advanced at that point is not yet secured against the property.

How lenders have responded §

Published guidance reports that Commonwealth Bank became the first major Australian lender in 2025 to offer construction loans with progressive drawdowns covering the off-site factory build stage, with NAB, Westpac and Bankwest also adapting construction products to modular builds.^[1]

Structures differ. Guidance on Bankwest's Western Australian arrangement describes a payment of up to 95 per cent of land value during the off-site phase.^[2]

These are secondary reports of lender policy rather than statements from the lenders. Treat them as a starting point for a broker conversation, not as current product terms.

When a mortgage does not apply §

A tiny home on wheels is frequently not classed as real property, which puts it outside mortgage lending. Published guidance notes buyers often use personal or vehicle-style loans instead^[3] — typically at higher rates and over shorter terms, which can make a cheap dwelling expensive to hold.

A dwelling on a leased site raises the same issue in a different form: without ownership of the land, the security position changes.

The practical consequence §

Finance can determine which builders are realistic for you. If your lender will not fund factory-stage payments, a builder whose schedule is weighted toward the factory becomes impractical regardless of price or quality.

Resolve finance in principle before signing a build contract. A signed contract with a payment schedule your lender will not fund is difficult to unwind, and deposits are often non-refundable.

Questions for a broker §

1. Which lenders currently fund factory-stage progress payments for residential modular builds?
2. What proportion of the contract sum must be paid before the module is on my land?
3. How are site works, transport and crane costs treated — inside the construction loan or separately?
4. What happens if the build runs beyond the loan's construction period?
5. Are there additional requirements for a rural or unserviced block?

Detail: financing a modular home.

References §