How tiny home lending works
Unlike traditional home loans, lenders see tiny homes differently, mainly because they often fall outside standard residential property rules. Depending on your situation, there are a few common pathways.
Tiny Home Loans
Looking to finance a tiny home? Whether you’re after a compact cabin, a custom-built tiny house on wheels, or a small standalone dwelling, there are lending solutions that can help make it happen.
Thinking small? Let’s talk big possibilities.
A tiny home can be a cost-effective and flexible way to get on the property ladder, create extra space for family, or generate rental income.
But financing a tiny home can work a little differently than a standard mortgage, and it pays to understand your options before you commit.
We help clients arrange lending for:
- Fixed tiny homes on foundations
- Tiny homes on wheels (THOW)
- Cabins and sleepouts
- Additional dwellings on existing property
-
Secured home loan
If your tiny home is fixed to land you own (with consent and the right zoning), you may be able to borrow against the property through a standard or construction home loan.
-
Personal loan
For portable tiny homes, a personal loan might be the best option. These loans are usually unsecured, which means higher interest rates and shorter terms, but they can get you into your tiny home sooner.
-
Top-up or refinance
Already have a mortgage? You might be able to use the equity in your existing property to fund your tiny home.
-
Construction and staged payments
If you’re building a tiny home from scratch, some lenders may offer staged payments, similar to a construction loan. You’ll typically pay interest only on the funds you’ve drawn down during the build.
What to consider before you apply
These points can help you work out what’s possible.
-
Land ownership
Do you own the land your tiny home will sit on? If not, where will it go?
-
Building consent and compliance
Some lenders will only consider tiny homes that meet building code and have council consent.
-
Fixed vs. movable
A tiny home fixed to land is generally easier to finance than one on wheels.
-
Purpose of the tiny home
Is your tiny home for personal use, rental income, or as a secondary dwelling? This can affect what’s possible.
Ask us a question, we're here to help.
Fill out the form below and we'll reach out.