Questions
13 answers, in plain English.
Missing yours? Email business@woolong.com.au. We respond within 1 business day.
Borrowing
Who can borrow from Woolong?
Australian proprietary companies, and self-managed super funds with a company as trustee, that will own and rent the dwelling. Every director guarantees the loan.
Can an individual or a super fund borrow?
A self-managed super fund can, when its trustee is a company, through a limited recourse borrowing arrangement. Individuals and sole traders borrow through a company of their own.
Are personal guarantees always required?
Yes. Every director gives a guarantee and indemnity, backed by a registered mortgage over property a director owns.
What is the independent legal advice requirement?
Every guarantor, and every co-owner of the mortgaged property, sees their own solicitor before signing and gives us a signed certificate.
The build
Why does modular need its own finance?
A modular home is built in a factory first, then delivered to its site. Standard construction loans pay against work done on your land. Modular Build Finance pays against certified factory stages, then rolls into a term loan at handover. It's the piece modular was missing.
Who owns the dwelling during the build?
Your company. Title to each stage passes to your company on the day its draw is paid, and is secured to Woolong the same day.
What dwellings are eligible?
Factory-built homes from an approved builder. Park cabins, land lease community homes, backyard units and multi-unit sites stay movable on their leased or licensed site: screw piles, plug-in services, nothing cast in. Knock down rebuilds and residential developments on your company's own land qualify too.
What does the quantity surveyor check?
That each stage matches the plans and the build schedule. The draw is paid only once the surveyor signs the certificate.
When do repayments start?
At handover. During the build, interest is capitalised: it is added to the facility, and there is $0 to pay.
Rent, insurance and default
What happens to the rental income?
Rent is paid to your company. Woolong redirects it to its collections account only after a default.
What insurance do I need?
Full replacement, public liability, transit and re-erection cover, with Woolong noted as loss payee.
Can the dwelling be moved later?
On a leased or licensed site, yes, with Woolong's consent. It is built to move, and the site deed keeps it removable. A home on your company's own land stays put.
What happens if I default?
The events of default are set out in your facility: a payment still missed 14 days after it was due, insolvency, loss of a leased site, moving a dwelling without consent, lapsed insurance or a guarantor's insolvency. After a default, Woolong can redirect the rent, take possession of the dwelling and call on the guarantees and the mortgage.
Still curious?
Our team is happy to help, and replies within 1 business day.