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Tiny Home Finance

Loans for tiny homes

As New Zealand house prices and the cost of living continue to rise, we are seeing an increasing interest in tiny home finance. Many people now see them as an affordable alternative to traditional housing, but arranging loans for tiny homes can be challenging. Where do you start?

Tiny home finance is an area which has fallen through the gaps with traditional banks. As these structures are not viewed as homes, they are not eligible for mortgage funding. Consequently, raising finance can be difficult, but we are here to help. Issues such as income, security, loan duration and even the tiny house NZ rent to own option may be on your mind. As a responsible lender, we would welcome the opportunity to sit down, discuss your situation and arrange affordable finance. While a traditional New Zealand home may be out of reach for many people, a tiny home could be a viable alternative.

 

Tiny Home Finance
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Freedom to move

One of the main benefits of a portable tiny home is that many do not require building consent from local authorities. Legally recognised as caravans more than homes, there are significant financial benefits. For example, there is no need to commit yourself to expensive long-term leases and you also have the freedom to move whenever and wherever you want. There are websites now connecting landowners with tiny homeowners looking for a place to stay. Many modern day tiny homes are seen as eco-friendly, minimising power usage and maximising energy capture through solar power. There is a lot more to your modern day tiny home than meets the eye!

Get finance for tiny houses from Alternate Finance with the freedom of negotiating your term and repayments. You’ll receive an email with an annual interest rate ranging from 10.95 to 17.95% p.a. for your loans for tiny homes.

For further details, please contact us for a one-on-one consultation, or view our loan default interest rate guide. Please view our rates and fees here.

If you want loans for tiny homes from Alternate, it’s important that you understand our terms of trade in detail. We are responsible lenders and want you to know the conditions. When making an application for your tiny house finance, you’re granting Alternate Finance Limited permissions to store your sensitive information. Our company will endeavor to keep all information on the Alternate Finance website accurate and up to date, relating to your loan for your investment. If you find an error, and if brought to our attention in writing, we will rectify it within a reasonable timeframe. For more information relating to the terms of your financing, please view this page.

Your details are data protected when applying for tiny house finance, as we have end-to-end encryption on all of our web forms. All loan information you provide will be treated confidentially and you can have confidence that your loan application will remain secure.

Get finance for tiny houses from Alternate Finance with the freedom of negotiating your term and repayments. You’ll receive an email with an annual interest rate ranging from 10.95 to 17.95% p.a. for your loans for tiny homes.

For further details, please contact us for a one-on-one consultation, or view our loan default interest rate guide. Please view our rates and fees here.

If you want loans for tiny homes from Alternate, it’s important that you understand our terms of trade in detail. We are responsible lenders and want you to know the conditions. When making an application for your tiny house finance, you’re granting Alternate Finance Limited permissions to store your sensitive information. Our company will endeavor to keep all information on the Alternate Finance website accurate and up to date, relating to your loan for your investment. If you find an error, and if brought to our attention in writing, we will rectify it within a reasonable timeframe. For more information relating to the terms of your financing, please view this page.

Your details are data protected when applying for tiny house finance, as we have end-to-end encryption on all of our web forms. All loan information you provide will be treated confidentially and you can have confidence that your loan application will remain secure.

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Did You Know?

What are tiny home loans?

What are tiny home loans?

Loans for tiny homes offer many people an affordable means of climbing onto the housing ladder. The cost of tiny homes can range from $35,000 up to and above $200,000. The opportunity to design and plan your own tiny home, the majority which are portable, can open an exciting new chapter of your life.

Do tiny homes need planning consent?

Do tiny homes need planning consent?

While this is something of a grey area, the majority of portable tiny homes do not require local authority planning consent. As long as they are no more than 3.5 tons, mobile, roadworthy and abide by the height and dimension regulations, this should not be an issue. However, it is important to check with your local authority.

How much do tiny homes cost?

How much do tiny homes cost?

As we touched on above, the cost of a tiny home can be anywhere from $35,000 upwards, to as much as you are willing to spend. When applying for loans for tiny homes, or even tiny home NZ rent to own, it is important to be realistic. While running costs for a tiny home tend to be a fraction of a traditional home, they still need to be considered.

Tiny home finance interest rates

Tiny home finance interest rates

In recent years we have seen the emergence of tiny house NZ rent to own schemes. These are long- term rental arrangements where an element of the monthly rental will go towards the long-term purchase of your tiny house. The scope and details of tiny house NZ rent to own schemes will vary between lenders. However, for those looking to acquire long-term accommodation this is a very interesting option.

Example of tiny home finance

Example of tiny home finance

As a tiny home is considered as a vehicle by many commercial banks, mortgage finance is often out of the question. Here at Alternate Finance we would consider using the tiny home as security against borrowings. Depending on your income, credit rating and the required funding, we may require additional security and/or a guarantor. These are issues we will discuss during the application process to ensure any finance agreement is affordable.

Why are tiny home so popular?

Why are tiny home so popular?

Aside from the savings compared to a traditional home, many people use their tiny home as an outside office, investment property, exercise studio, granny flat or even their own AirBnB. There are other issues to consider with commercial opportunities but these may be an option.

Planning your tiny home?

Planning your tiny home?

While DIY tiny homes are different, prebuilt tiny homes tend to have a three month lead period for design, planning and construction. Securing tiny home finance before ordering your tiny home will give you scope for negotiation and the opportunity for cost savings. Cash is still king!

Can I use my Kiwisaver account to finance a tiny home?

Can I use my Kiwisaver account to finance a tiny home?

While the majority of mobile tiny homes benefit from falling outside of planning consent regulations, this means you can’t use your Kiwisaver account. Even though this would be a “home” it is recognised as a mobile home/caravan. However, you may be able to use your Kiwisaver account to purchase land upon which to place your tiny home, an option worth investigating.

Security for tiny home finance

Security for tiny home finance

When considering your tiny home finance application we will look at income, security and the potential use of a guarantor. If you are able to provide a deposit, this would reduce the loan to value ratio and help with the approval process. As a responsible lender, it is important to find the right deal which suits all parties. The more security you can provide, the less risk and the lower the interest rate, it is a simple as that.

Contact our friendly team for more information on bridging loans