Australia’s largest mortgage lender, the Commonwealth Bank (CBA), announced on Friday 31 January 2025 that it would relax lending rules to make it easier to get home loans for prefabricated houses, which are quicker to build than houses built with traditional methods.

Traditionally, homeowners have had to cover up to 90% of construction costs for prefabricated homes; banks lend only for the final 10% once the home has been transported to the site. Under CBA’s new policy, the bank will provide progress payment loans of up to 80% of construction costs before the home is moved on site.

Our CEO, Professor Mathew Aitchison, welcomed this change, highlighting that financing challenges had been a ‘thorn in the side of this industry’.