24 Dec 2022

Is It Cheaper to Live in a Tiny House?

Do Banks Finance Tiny Homes

Potential homeowners and borrowers may wonder if it is cheaper to live in a tiny house rather than a traditional home. Prospective tiny home owners can expect to pay between $3,000 and $5,000 per square meter for a tiny house. Some tiny houses can run as low as $11,000, while some can run up to $85,000 on the higher end. Therefore, purchasing a tiny house can cost less than purchasing a traditional home or renting a living area. However, because of their lower cost, potential borrowers will not be able to fund the purchase of a tiny house through conventional mortgages. 

The Australian housing agencies generally classify tiny houses as caravan homes, therefore, potential borrowers can apply for a caravan loan through traditional and non-traditional home loan providers. Potential borrowers can also apply for a personal loan to assist with funding the purchase of a tiny house. 

In Australia, tiny houses are rising in popularity due to their cost-effective and affordable nature, allowing Australians to break into the housing market and become homeowners sooner. The rising prices of the Australian housing market can make it far more difficult for potential homeowners to successfully purchase a home, which is why countless Australians enjoy the advantages of purchasing a tiny house. 

If you are interested in learning more about the various types of funding available to you to assist in purchasing tiny houses should reach out to the Mortgage House team of professional mortgage lenders for further information and assistance.

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