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Build to rent and medium density housing linked to industrialised construction.
Western Australia’s state-backed lender Keystart is expanding its role in industrialised housing delivery, with its modular housing finance initiative now evolving into a broader platform supporting medium and high-density residential development linked to offsite construction methods. (main image: A Summit Modular home in Western Australia, where Keystart’s modular housing finance program continues expanding across regional markets.)
In an interview with Built Offsite, Keystart Chief Executive Officer Mark Tomasz said the organisation’s modular home loan product had generated strong early interest since launch, particularly across regional Western Australia, while also helping establish financing pathways for a broader range of industrialised construction outcomes.
Keystart was established by the WA Government in 1989 to improve access to home ownership for Western Australians unable to meet the lending requirements of traditional banks. Since then, the organisation has assisted more than 125,000 people into housing and currently manages more than $1.8 billion in loans.
Its modular housing loan, launched in 2025, marked one of the first dedicated state-backed lending products in Australia specifically structured around the realities of offsite manufacturing.
Unlike conventional construction loans, the Keystart model allows staged payments during factory manufacturing while also covering land, transport, installation and connection costs associated with modular delivery. The product was developed partly in response to long-standing cashflow constraints experienced by modular builders during the manufacturing phase.
“We’ve had over 100 enquiries to date and we’ve also written our first loans,” Tomasz said.
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Regional WA driving demand
According to Tomasz, the overwhelming majority of applications have originated from regional Western Australia, reflecting ongoing housing shortages and limited construction capacity outside Perth.
“What’s been encouraging is that almost all the applications we’ve received are in regional WA,” he said.
Keystart has subsequently increased its regional engagement efforts through government-backed roundtables and outreach sessions across Bunbury, Geraldton and the Great Southern.
However, Tomasz said financing was only part of the challenge.
He noted that outdated perceptions around modular housing still remain among some consumers, despite significant improvements in design quality, manufacturing capability and compliance standards across the sector.
“There does need to be more work done to demonstrate the quality housing outcomes that can now be achieved,” he said.
Keystart moves beyond standalone modular homes
While the original loan product focused on volumetric modular housing, Keystart is now increasingly connected to broader industrialised construction delivery models.
Since Built Offsite last spoke with Tomasz, the organisation has announced several additional financing initiatives tied to housing supply, including a Build to Rent Kickstart Fund, a Pre-sale Guarantee program and a First Home Buyer Commercial Finance Facility targeting medium and high-density development.
Importantly, those programs are not tied to conventional construction methodologies.
“We expect those programs will really help support the growth of the prefab and panelised construction sectors here in WA,” Tomasz said.
The comments indicate that future Keystart-backed apartment, townhouse and build-to-rent developments could increasingly incorporate modular, panelised, precast and other industrialised construction systems, provided projects meet Keystart’s broader financing and eligibility requirements.
That shift also aligns with the WA Government’s recent investment into advanced manufacturing facilities linked to housing and infrastructure delivery, including support for facilities involving Built Living and Atlas Precast.
“I believe that with the investment the WA Government is making in precast and advanced manufacturing facilities, a lot of what we will finance in terms of development will use that construction methodology,” Tomasz said.
Builder participation expands
Keystart currently has seven approved modular builders participating in the scheme, up from five at launch.
Participating builders currently include Modular WA, Evoke Living Homes, Fox Modular / PIQUE, Summit Modular, Boodjera Group, Aussie Bush Cabins and TR Homes.
Tomasz also confirmed the program is not strictly limited to WA-based manufacturers.
Interstate modular builders supplying housing projects within Western Australia can also potentially participate in the scheme, provided projects and builders satisfy Keystart’s approval and due diligence requirements.
However, Tomasz stressed the organisation’s priority remained supporting Western Australian housing supply and local manufacturing capability.
The position comes as imported modular housing systems and offshore volumetric manufacturing continue gaining attention nationally, particularly in mining, accommodation and regional housing sectors.
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