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.
