CBA to accept Coposit-secured deposits as pre-sales

The Commonwealth Bank of Australia’s (CBA) Business Bank has announced that it will now accept presale contracts (up to 10 per cent) secured through property tech platform Coposit for off-the-plan residential projects funded by the major bank.

Coposit allows eligible home buyers to purchase off-the-plan homes with a minimum deposit of $10,000, with the buyer then paying the remainder of the difference in weekly, interest-free repayments during the home’s construction period.

The buyer would then finalise the settlement through regular financing channels upon the completion of construction.

Prior to the introduction of Coposit, buyers were required to pay 10 per cent of the purchase price upfront. CBA said that the new service would allow home buyers to purchase an off-the-plan property with a smaller deposit and save until the home is constructed and ready to live in.

Mike Vacy-Lyle, CBA’s group executive of business banking, said that working with Coposit reflects its broader commitment to back solutions that address Australia’s housing undersupply and support the construction industry.

The group executive said: “Housing affordability and undersupply are some of the most pressing issues nationally, requiring a multifaceted approach involving innovative, sustainable solutions and cooperation between all industry stakeholders.

“Initiatives like this could make a real difference, particularly for first home buyers, by allowing them to secure the purchase of their first home while continuing to save for the initial deposit until the property is built.”

He said that CBA’s acceptance of Coposit contracts would deliver “greater certainty” for developers.

Vacy-Lyle said: “By accepting Coposit contracts CBA is delivering greater certainty for property developers, who can include these sales in their presale 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.”

Coposit’s CEO and co-founder Chris Ferris said: “In an environment where house prices continue to increase, it has become even harder for buyers to accumulate the savings required for an initial deposit.

“Coposit is changing the pathway to owning property – we believe in breaking the barriers to home ownership for all Australians and we are thrilled to see that Australia’s largest bank agrees.

“Coposit’s agreement with CBA will help more developers secure the presales needed to get their projects underway and start their builds sooner, which is critical in helping the industry increase supply.”

The announcement comes as CBA announced a new digital home loan product that would bypass the proprietary and broker channel and go direct-to-customer.

[Related: CBA launches direct-to-consumer refinance product]