In a first for an Australian bank, Commonwealth Bank of Australia’s Business Bank has agreed to accept pre-sale contracts (up to 10 per cent) secured through property tech platform, Coposit, in residential development projects funded by the bank.
Coposit lets qualified home buyers purchase off-the-plan properties with a minimum deposit of $10,000.
Prior to settlement the buyer pays the balance of the required deposit in weekly, interest-free payments during the construction phase and then finalises settlement through traditional financing channels upon completion.
The innovative service allows buyers to secure a property purchase while continuing to accumulate savings until the project is complete and ready to move-in.
CBA group executive business banking Mike Vacy-Lyle said working with Coposit forms part of CBA’s ongoing commitment to support the construction sector and back innovative solutions aimed at tackling Australia’s housing shortage.
“By accepting Coposit contracts CBA is delivering greater certainty for property developers, who can include these sales in their pre-sale hurdles when seeking financing of their property projects. This is an important step in facilitating better lending outcomes for new residential developments, to help fast-track new supply to the market” Vacy-Lyle said.
Coposit’s CEO and co-founder Chris Ferris said: “Coposit’s agreement with CBA will help more developers secure the pre-sales needed to get their projects underway and start their builds sooner, which is critical in helping the industry increase supply.”
Coposit has onboarded 65 projects on its platform across the eastern seaboard in New South Wales, Queensland, and the Australian Capital Territory.