Financing your Tiny Living Dream
What if you have more options than you think?
If you’ve considered making the switch from a conventional home to living in a tiny house, there’s no doubting the appeal of having housing security without the weight of a large mortgage and the stress that entails. Yet financing a smaller home on wheels can still prove difficult for many of us.
That’s why we at Adapt Homes recommend working with the team at Great Escape Finance, who offer a range of lending solutions that have been developed especially for the Australian Tiny House industry, and cater to the particular needs of tiny homeowners. Not only were they pioneers in securing loans for tiny houses across the country, they remain number one in Australia to this day. The family-operated business works with a growing panel of lenders who understand the industry and its specific requirements and realities.
Expert guidance is crucial
Tiny home financing presents unique hurdles. Traditional mortgages are rarely an option unless you have pre-existing land, leaving borrowers to rely on personal loans. These loans often come with higher interest rates and shorter repayment terms (typically up to seven years). Securing adequate funding may necessitate stacking multiple loans, complicating the process.
It's essential to partner with a finance professional who specialises in tiny home loans. This expertise can help you both secure the necessary financing, and avoid damaging your credit score (a common pitfall for the uninitiated).
How much can I borrow?
When it comes to borrowing capacity, Great Escape Finance uses a simplified guideline:
Potential borrowing capacity is roughly equivalent to your annual income (or combined income for couples), minus existing liabilities.
Monthly repayments are estimated at 2% of the borrowed amount.
For example, a couple with a combined annual income of $120,000 may be able to borrow up to $120,000, with estimated monthly repayments of $2,400.
Best advice we can share when it comes to financing?
Don’t put off your tiny living journey because you think you won’t qualify for a loan. The first step is to get in touch with the team at Great Escape Finance, filling out an initial query form stipulating the amount you are after, and getting the ball rolling! This service is free of charge, completely confidential, won’t affect your credit rating, and doesn’t oblige you to anything.
One of their brokers will then sit down with you personally, taking the time to truly understand your financial situation, and determine which steps are in your best interest and which strategies will yield a successful outcome. In short, they will figure out where you are currently, and where you want to get to. And if need be, they will help work out a plan to get you on the right path to be lending-ready in the near future.
Ready to explore your options?
To be clear, all services provided by Great Escape Finance are completely free until loan applications are successful and Adapt receives nothing in return. Fees are capitalised onto the loan, and in almost all instances, loan recipients won’t require a deposit.
So reach out today, or visit Great Escape Finance’s FAQs for more answers to common enquiries. You may very well find that their support and expertise goes well above finance alone.
All You Need To Know About Finding Land
Some Tiny Houses on Wheels (THOW) owners are fortunate enough to have family members or close friends who own property, ready to offer up a parking spot for their mobile home.
Others will search for rental options online, reaching out to landowners, RV parks and campgrounds, or exploring rental spots to park caravans or THOWs via local networks and Facebook groups.
But if you’re feeling like this could be a daunting task, and were rather hoping for a turnkey solution to finding land, you’re not alone… and we’ve got an alternative for you!
WE PARTNER WITH THE EXPERTS
Our partners at ParkMyTinyHouse are the leaders in helping Tiny Houses on Wheels (THOW) owners find a place to park their homes across Australia. In operation since 2021, they have developed a platform based on a smart and simple concept, matching like-minded people who want to live more freely in their movable dwellings with land owners who are willing to rent a small spot to them long term. The platform caters to those looking for a parking spot for a minimum of six months, where they will live full-time.
A WIN-WIN RELATIONSHIP
All you have to do is fill out an application to become a member, listing details about what you’re looking for in terms of property.
Property hosts fill out similar documents from their end, detailing property size, current tenants if applicable, and sharing all the important information about the property itself. They clearly list what they’re able to offer in terms of land area and services that will be available to prospective tenants.
And if you’re not finding the ideal spot within the registry, the team at ParkMyTinyHouse will put out feelers via their extensive network to find properties that may be able to accommodate you.
WHERE DO OUR ADAPT HOMEOWNERS CHOOSE TO PARK THEIRS?
A number of our new THOW owners have family members or close friends that have offered an area of their property as a parking spot – an ideal scenario for those seeking a sense of community or finding benefit in an intergenerational living setup.
Conversely, we also have not-so-tiny homeowners that were after a comfortable place to call home while their work takes them to different mining or building sites across territories. We love the flexibility that comes with having a moveable dwelling, which allows for keeping their “nest” and sense of peace and security easily accessible to them, no matter where their jobs take them.
And for those who did not share either of these realities, a ParkMyTinyHouse membership has proven a successful and smart investment time after time, matching our new Adapt Homeowners with a safe and affordable place to call home base for the first leg of their journey!
