The Tasmanian government will release legislation to establish a nation-first Modular Housing Finance Guarantee Scheme, designed to tackle one of the construction sector’s biggest hurdles, namely access to early-stage finance.
The scheme will see the state government partner with commercial lenders to guarantee a portion of construction loans during the initial phase of a modular build.
Historically, banks have been reluctant to finance prefabricated homes while they are being constructed offsite in a factory, citing limited standard collateral before the structure is permanently affixed to land.
Under the proposed model, the government-backed guarantee will cover the loan while the home is manufactured offsite. The guarantee will progressively taper as construction advances, ceasing entirely once the dwelling is installed on-site and transitions into standard mortgage security.
Premier Jeremy Rockliff noted that financing barriers have long hampered the uptake of faster, modern building techniques.
“We know one of the biggest barriers to modular housing is finance and we are fixing it,” Rockliff said.
“Modular housing is faster and more efficient than traditional builds, and this scheme will help more Tasmanians take advantage of this type of housing.”
To qualify for the scheme, homes must be manufactured offsite in a factory, transported, and permanently affixed to land.
Minister for Housing and Planning Kerry Vincent noted that the government has already integrated modular housing into its social and affordable housing programs.
“We have seen first-hand how successful this type of construction is through our targeted programs, and the finance guarantee is a fantastic next step,” Vincent said.
The draft legislation will be released for a brief public consultation period, with the government targeting formal enactment in the final quarter of 2026 as part of its broader 2030 Strong Plan for Tasmania’s Future.
“Our 2030 Strong Plan for Tasmania’s Future is all about delivering more homes, and modular housing is key to increasing supply,” Rockliff said.
“Industry is on board, we are working with the banks, and Tasmanians are keen to live in their very own modular home.”
