Tasmania unlocks faster, cheaper housing with modular finance guarantee

The Tasmanian Government will remove one of the biggest barriers to faster, more affordable housing with a nation-leading Modular Housing Finance Guarantee.

Premier Jeremy Rockliff today announced the initiative, which will partner with banks to unlock finance for modular homes during the construction phase, where traditional lending models fall short.

“The biggest obstacle to modular housing isn’t the build, it’s access to finance,” Premier Rockliff said.

“Our Government will fix that by backing a targeted loan guarantee that gives lenders confidence and helps Tasmanians get homes built sooner.”

The scheme will guarantee construction loans while homes are being built off-site, where limited collateral has historically restricted lending.

The Government’s guarantee will reduce as construction progresses and cease once homes are installed and become standard mortgage security.

By addressing the financing gap, the initiative will accelerate housing supply, lower upfront costs, and improve access for first-home buyers.

“Modular homes can be built in months, not years, and this reform ensures financing keeps pace with that innovation,” Premier Rockliff said.

Strong safeguards will be in place, including eligibility limited to approved lenders and accredited Tasmanian builders.

The Government will work with industry and lenders to introduce legislation for the Scheme in the August sitting.

Further, the Tasmanian Government will continue to advocate to the Federal Government to reduce financing and other barriers in the modular space.

“This is about removing a roadblock for Tasmanians and getting more homes built faster, and at lower cost,” Premier Rockliff said.