Can I Finance a Tiny Home?
- Modular Building Brokers
- Jul 21
- 3 min read
One of the questions we're asked most often is: 'Can I finance a Class 1A tiny home?'
The short answer?
Absolutely.
Working alongside our trusted finance partner, Linda from Integrum Finance, we've answered the most common questions about financing a Class 1A tiny home, including build costs, installation, deposits, and what lenders are looking for.
If you're dreaming of downsizing your house but upsizing your lifestyle, this guide is for you.
How Much Do I Need to Earn to Finance a Tiny Home?
Unfortunately, there's no magic number. If only banks accepted good vibes as proof of income.
Your borrowing capacity depends on several factors, including:
Your income
Existing debts
Living expenses
Number of dependants
Employment history
As a rough guide:
Couple
For a project costing around $250,000 (including your Class 1A tiny home and installation), a combined employment income of approximately $75,000 per year may be sufficient if you have little or no existing debt.
Single Applicant
Because living expenses are generally lower, a single applicant earning around $65,000 per year may also be eligible, depending on their financial commitments.
Every lender assesses applications differently, so these figures should only be used as a starting point.
Can I Get the First Home Owner Grant?
In many cases, yes, provided you meet your state's eligibility requirements.
The First Home Owner Grant (FHOG) can apply to eligible Class 1A tiny homes because they are considered permanent dwellings.
One important thing to remember, though, is the FHOG cannot be used as your deposit.
The grant is generally paid after construction is complete, so think of it as a welcome bonus rather than upfront funding.
Maybe it pays for:
that oversized couch you've been eyeing off,
a plumbed fridge,
or finally upgrading from camping chairs.
How Much Deposit Do I Need?
It depends on whether you already own your land.
If you already own your land (outright)
You may be able to finance the full build and installation cost without needing an additional deposit.
If you're purchasing land and building
A deposit of around 20% is generally the sweet spot, helping you avoid lenders mortgage insurance (LMI) and improving your loan options.
Of course, the bigger the deposit, the lower your repayments are likely to be.
Your future self will thank you.
How Can I Improve My Chances of Approval?
The biggest thing you can do? Reduce your existing debt.
Credit cards, Afterpay, Zip Pay, car loans and personal loans all reduce your borrowing capacity.
A simple strategy many people find effective is the snowball method:
Pay off your smallest debt first.
Close that account completely.
Roll those repayments into the next debt.
Repeat until you're debt-free.
Not only does this improve your borrowing power, but it also means fewer monthly repayments draining your bank account.
Less debt. More freedom. Sounds like the tiny home lifestyle already.
What If I Don't Own the Land?
Unfortunately, traditional finance generally requires that the land is owned by the borrower.
If you're planning to place your tiny home on a family member's property, financing options become much more limited.
It's still worth speaking with a broker, as every situation is different.
There's So Much Paperwork...
We're not going to sugar-coat it. There is paperwork. Quite a bit of it.
The good news is that you're not expected to figure it all out alone.
Our trusted finance broker guides you through the process from start to finish, helping with both your finance application and your First Home Owner Grant (where applicable).
My Situation Is Complicated
You're not alone. Very few finance applications are straightforward these days.
Self-employed? Changing jobs? Recently divorced? Multiple income streams? Existing investment property?
None of these automatically rule you out.
Every application is assessed individually, so it's worth having a conversation before assuming you're not eligible.
What's My First Step?
Before applying for finance, you'll need to know what your project is likely to cost.
The easiest place to start is by requesting a personalised quote.
We'll provide an accurate estimate for your chosen design, site requirements and installation, giving your finance broker the information they need to assess your borrowing options.
From there, you're one step closer to living tiny, and living well.
Ready to Explore Your Finance Options?
Whether you're just starting your research or you're ready to build, we're here to help.
Get a quote today, call us on 0477 409 449, or speak with our trusted finance partner to understand your borrowing capacity and take the next step towards owning a Class 1A tiny home.
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