Our loan product
Modular Build Finance
The finance modular was waiting for.
1 facility carries your home from the factory floor to its front door, paying your builder as each of the 5 stages is certified, then settling into a principal and interest loan of up to 10 years once the keys are handed over.
Wall panel in. Roof panel down.
The terms
These are the proposed terms for our first facilities, clear and simple. Your letter of offer sets out the terms of your own.
Proposed terms
Borrower
An Australian company, or the company trustee of a self-managed super fund, that owns and rents the dwelling
Purpose
Build, install and rent modular homes, from a single dwelling to a residential development
Facility
1 contract, a build tranche then a term tranche
Loan size
70% combined loan to value ratio or less
Your equity
20% of the contract price or more, paid before the first draw
Build tranche
6 months or less, interest capitalised
Draws
5, each certified by an independent quantity surveyor and paid direct to your builder
Title
Each stage passes to your company the day it is paid, secured to Woolong the same day
Term tranche
10 years or less from handover, principal and interest monthly by direct debit
Interest
Variable, the 1 month bank bill swap rate plus a margin
Guarantors
Every director, jointly and severally
Legal advice
Independent advice for every guarantor and every co-owner of the mortgaged property
Insurance
Full replacement, public liability, transit and re-erection cover, with Woolong noted as loss payee
Site
Land your company owns, or a lease or licence for at least the loan term with a signed site deed
Relocation
On a leased or licensed site, the dwelling moves only with Woolong's consent
Valuations
At the start and every 2 years, in place and re-sited on a leased site, or the land and home together on your company's land
Who can borrow
We lend to companies, and to self-managed super funds with a company as trustee, and that's by design. The borrower owns the home, earns the rent and carries the loan, which keeps every facility clean and strong.
Eligible
- An Australian proprietary company that will own and rent the dwelling
- The company trustee of a self-managed super fund, through a limited recourse borrowing arrangement
- Every director gives a guarantee and indemnity, after independent legal advice
- A director owns property that can take a registered mortgage
- A factory-built home from an approved builder, which stays movable on a leased or licensed site: screw piles, plug-in services, nothing cast in
- Land the company owns, or a site lease or licence for the loan term with a site deed signed by the landowner and any mortgagee of the land
Excluded
- Individuals and sole traders
- Self-managed super funds with individual trustees
- Companies under external administration
- Personal or household borrowing
Documents
- Company constitution and current company extract
- Identification for every director
- Plans, specifications and the builder's contract with its draw schedule
- The site lease or licence, or the title to the company's land
- Details of the director's property and any loans secured on it
- Insurance quotes, including transit and re-erection
- Independent legal advice certificates, at signing
Rates and fees
Proposed terms, indicative and subject to credit assessment. Every fee is set out in your letter of offer, so you sign with every number in view.
| Rate or fee | Amount | When |
|---|---|---|
| Interest | Variable, the 1 month bank bill swap rate plus a margin, confirmed at application | Capitalised during the build, paid monthly from handover |
| Establishment fee | Quoted in your letter of offer | Once, at the first draw |
| Monthly account fee | Quoted in your letter of offer | From the first draw to the last repayment |
| Your equity | 20% of the contract price or more | Before the first draw, paid to your builder |
How we size the loan
We lend against the home and the equity in a property a director owns. On a leased or licensed site the home counts at its re-sited value, what it would sell for in its next home after the cost of moving it. On your company's own land, the land and the finished home count together. The loan stays at 70% of the security, or less.
Sample, $525,000 contract price
Contract price
$525,000
Your equity, 20%
$105,000
Facility
$420,000
Security needed
$600,000
Security, $600,000
Loan, $420,000
Sample on a leased site, with the re-sited value taken at 65% of the contract price. A valuer reports the values for your home at the start and every 2 years.
5 pieces of security
Proposed terms. Every facility carries the same 5, all in place before the first draw, so the build runs smoothly from start to finish.
- 1
A security interest over the dwelling, registered on the Personal Property Securities Register before delivery
- 2
A guarantee and indemnity from every director
- 3
A registered mortgage over property a director owns
- 4
A registered mortgage over the company's land, or on a leased or licensed site, a site deed in which the landowner agrees the dwelling stays removable
- 5
A direction to pay rent to Woolong, used only after a default
Proposed terms
6 events of default
Rent goes to Woolong only after 1 of these. Moving the dwelling needs Woolong's consent first.
Missed payment
A payment still missed 14 days after it was due
Insolvency
The company becomes insolvent
Lost site
The company loses its site lease or licence
Unapproved removal
The dwelling is moved without Woolong's consent
Lapsed insurance
A required insurance policy lapses
Guarantor insolvency
A guarantor becomes insolvent
Ready when you are.
Send your plans and we'll shape a facility around your build.