Can You Get a Conventional Mortgage on a Tiny House?
Potential borrowers and homeowners who are researching the various home loan product offerings available to them may want to learn if they can get a conventional mortgage on a tiny house. When it comes to tiny houses, potential borrowers can expect to pay between $3,000 to $5,000 per square meter, with some tiny houses costing as little as $11,000 or as high as $85,000. Because tiny houses cost less than traditional homes, they are not eligible to obtain a conventional mortgage.
However, just because tiny houses are not eligible for conventional mortgages does not mean that potential borrowers are out of options when it comes to borrowing and lending. Australian housing agencies generally classify tiny houses as caravan homes, therefore, potential borrowers are eligible to apply for a caravan loan. Additionally, potential borrowers can apply for a personal loan to assist with funding the purchase of their tiny home.
In Australia, tiny houses are gaining popularity because they can allow Australian to gain homeownership faster as housing prices continue to rise in the Australian housing market. Tiny houses are affordable and cost-effective and countless Australians genuinely enjoy living in them, which is why they continue to gain popularity.
If you are interested in learning more about the caravan and personal loans product offerings to assist with the funding of a tiny house should reach out to the Mortgage House team of professional home loan lenders for further information.