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Kit Home Loans

A kit home is a standard house that is partially prefabricated in a factory which can then be constructed on site by the owner or a registered builder. This type of DIY home construction can save you a significant amount of time and money depending on what type of home you want and where you are building.

We recommend that you only consider constructing a kit home if you consider yourself a competent handy man or have some experience working in the construction industry or you are hiring a builder to construct the kit home for you.

The progress payments problem

The major problem encountered by people who are buying a kit home is that most lenders do not allow owner builder loans or will ask for you to pay for the kit up front using your own funds.

The kit home manufacturers normally want to be paid before the kit leaves the factory, and yet your bank will not lend until the house is complete! Instyle Australia Wide kit homes can sell their kit in sections which can match the progress payment schedule used by most banks, this normally solves the problem. Because of these potential issues it is wise that you call us on (07) 46697669 to see if you are qualified for a loan and so that we can help you to choose the right lender to fund your project.


We can help you release funds for your project in the following situations:

If you DONâT have enough funds or equity to pay for the kit yourself up front and are using a licensed builder then we can help you fund the construction of the home in regular progress payments. The bank will release funds in progressive payments to Instyle Kit Homes and the licensed builder that you have hired to construct the kit for you.

If you do NOT have enough funds to pay for the kit yourself up front and have no equity in any real estate and are not using a licensed builder then no bank or lender including us would be able to assist.

If you are a Owner Builder intending to construct the entire home, most banks will not advance funds against the building project, However if you have the equity in the land or other real estate then lenders may release cash out advance against this equity that could fund your project.

An Ideal Solution when using a licensed builder is for your builder to provide you with a common building contract and then contract to purchase the kit home from Instyle Kit homes.
Instyle will provide the builder with all the resources required such as Plans, Engineering etc and the kit home, to the extent that all the builder will need to supply is the labour.


How much can you borrow?

First home buyer: Up to 90% of the value of the land plus the cost of construction.
Investor: Up to 90% of the value of the land plus the cost of construction.
Low doc: Up to 80% of the value of the land plus the cost of construction.
Discounts: Competitive professional package and basic loan discounts are available.

Note: Financing a kit home isnât as simple as financing a normal construction project. Please call us on (07) 46697669 to talk to a mortgage broker in our office for expert advice.

Why are the banks conservative?

Australian lenders treat kit homes very conservatively as they are worried that if they release funds to pay for the kit up front and something goes wrong with construction then they will be left with only the land as security, which may be worth less than the loan amount.

For this reason they generally only release funds for the kit up front if you have significant equity in your land or will delay payment until the kit is âadding value to the landâ. This is normally when the kit has been completed! We can usually work around this as Instyle Kit Homes can be paid in stages or if you are using a licensed builder by including the kit in his construction contrac



Tips to help you finance & build your kit home

Follow these simple tips to avoid headaches down the track:

  1. Donât run out of money: If you run out of money during construction then in most cases the banks will NOT approve a loan increase for you. In other words, you are in big trouble!

  2. Donât change your plans / budget: If your budget, plans, design or specifications change then most banks will reassess your application from the beginning. If you havenât got a final budget completed or donât have final council approved plans then apply for a pre-approval instead. Once you are certain there will be no changes then you can apply for formal loan approval.

  3. Keep it simple: Australian banks donât work well with âoutside of the box❠procedures for their loans. It is often easier to make small changes to your process or to comply with bank procedures than it is to argue with the bank. If your situation is outside of the box then apply with a lender that can help you rather than trying to get your bank to assist with something that is outside of their normal process or lending guidelines.



Apply for kit home loan

Our mortgage brokers are experts in construction loans and know how to help you get your mortgage approved! We can quickly work out if you qualify for a mortgage and then help you to apply with the most competitive bank.

To Learn more about a home loan for a Kit Home call us on (07)46697669 or Click Here to Contact us.....