Transportable Home Loans Australia

Posted by Transportable Homes on June 18, 2011 under Transportable Homes | Be the First to Comment

Home Loans Australia

You will probably find after speaking to various lending institutions confusion and frustration will prevail. The word to keep in mind is RISK. This little word will determine the lending institutions attitude towards your proposition.

If you are to buy a existing home then at the point of purchase an existing house is transferred from one owner to the other. A very straight forward process. If you buy a relocatable home then there are things like progressive payments, paying for a house that is not finished or does not have the value of the borrowings at that point (more risk at least as far as the standard lending institution is concerned).

The builders will want payment before your house leaves the factory and banks only lend on a house that is completed and fixed on its final site.

There are horror stories of houses being started by a builder and progressive payments being made, then the builder sells the house to a buyer with a shorter delivery time and the house that is legally the banks at that point is gone and there have been occasions when the house has not been replaced.

Now, do not be put off.

1:  Remember relocatable homes are the single biggest growth sector in the building industry and set to grow enormously for decades ahead.

2:  Traditional lending institutions are very slow to change and have outdated attitudes.

3:  There are now a growing number of new more efficient lending institutions catering for relocatable homes, this and present political moves to free up the banking sector will make financing much easier.

4:  There is a big variation in lending institutions and you must compare one against the other and keep hunting for the right one for your situation. If you don’t get what you want from the bigger banks then there are a few smaller ones that are very keen to get your business. You must shop around.

You must make very sure that the builder or company building your house is financially secure and has a good reputation. Ask previous customers about them and speak to the appropriate people to make sure they are financially stable and reliable.