Is It Possible to Finance a Tiny House?
As housing prices continue to rise in the Australian housing market, Australians continue searching for alternative options. One option is to acquire a tiny house. Australians can purchase tiny homes and enjoy living in them. Areas designated for these housing options continue growing. Plus, they remain affordable and cost-effective.
Individuals can expect to pay an average range of $3,000 to $5,000 per square metre. In other cases, they cost $11,000. The prices reach $85,000 on the high end. When it comes to financing, these housing options do not qualify for a mortgage. Most lenders require a minimum of $100,000 for a mortgage. Thus, a tiny home does not qualify on price alone. In addition, they have a different classification than single-family homes. The Australian housing agencies classify tiny houses as caravans.
Some lenders offer caravan loans. In other cases, the individual can apply for a personal loan.
Mortgage House can help individuals interested in purchasing this housing option. Our loan specialists will explore your financial situation and goals. Then, they can guide you toward the best financing option. The best loan product depends on your current housing status. For example, if you already own a home, it’s possible to leverage the property’s home equity into financing the new purchase. We also offer several online tools to help you gauge your financial position.
Tiny House and Mortgage Financing Conclusion
A tiny house in Australia does not qualify for mortgage financing. Instead, individuals can obtain different types of financing for their purchases. Our Mortgage House loan specialists can guide you through your options.