When it comes to financing Tiny Homes, Granny Flats, and Minor Dwellings, several options are available to make the process smoother and more manageable. The best choice depends on various factors, including the amount of deposit saved, access to KiwiSaver, equity position, and repayment ability.
Westpac has developed a funding product that takes security over the prebuilt while it is being built in the factory. This allows the customer to fund the home while it’s being built. Westpac NZ was the first New Zealand bank to launch a dedicated mortgage product aimed at helping Kiwis into prebuilt homes.The product is called ‘Choices Pre-Built’ and allows customers to make progress payments to the builders while the home is being constructed Being able to invoice for progress payments allows builders to use less working capital which reduces their costs. The Choices Prebuilt product launched in July 2019 and since then there has been an increasing interest in prebuilt businesses and customers.
Angela Townsend
Westpac Mobile Mortgage Manger
Phone: 027 809 2278
Email: angela.townsend@westpac.co.nz
With our consented dwellings, you can access your KiwiSaver funds to help finance your build if you plan on purchasing land to place your new home on. This option provides a significant financial boost, allowing you to use your KiwiSaver savings towards the cost of the land and the construction of your consented dwelling. By leveraging your KiwiSaver, you can make your dream home more attainable and manageable, ensuring you have the necessary resources to bring your vision to life.
Lime Group, offer a personalised one to one service in helping you find the right loan, product for you. They’ll ensure you get all the options in plain language. They do the hard work for you in finding the most competitive mortgage terms that’s right for you. Further to that, It’s a totally free service.
Tiny Home Loans, the simplest way to make your Compac Tiny Home dream a reality. With a straightforward online process, securing financing has never been easier. Squirrel Tiny Home Loans offer interest rates ranging from 9.55% p.a. to 18.95% p.a., providing flexible and competitive options. Unlike fixed-rate home loans, these loans allow you to make early repayments or pay off the entire balance at any time without any penalties. Experience the freedom and convenience of Squirrel Tiny Home Loans as you embark on your journey to owning a beautiful Compac Tiny Home.
Rent-to-Own is very similar to finance.
Although we don’t do rent-to-own as such, Compac homes recommend a third-party provider who specialises in lending for Transportable Homes. An online application can be completed by clicking here. Alternatively you can contact one of the providers above to see which package suits you.
Rent to Buy is a type of purchase where something like a Compac Home home is leased in exchange for a weekly or monthly payment. In theory this sound simple. However, with Rent to Buy there is the option to buy the asset (Transportable Home) at some stage during the agreement. This is how Rent to Buy is different from a traditional renting agreement, as at the end of a lease you have to give back the item. Typically with Rent to Buy, a person pays a bond and moves in as a tenant, and pays “rent” for a period of time. In a rent to buy arrangement, the rent amount will be higher than normal as it is being used to form a deposit to purchase the asset.Once the deposit is in place, the tenant buys the unit at the agreed price and becomes the legal owner. Or alternatively there is a risk you will lose the deposit you have paid, if you cannot complete the transaction.The main catch with Rent to Buy, is the product provider is usually self-funding the lend, and therefore the contract will have a very high interest rate to cover the risk.
In essence, Finance is where the customer secures a loan from a third-party lender to purchase their Compac Home. The customer will immediately take possession and ownership of the unit (once completed), and make regular repayments to the company that provided the funds. The end result is that you’ve paid a slightly higher amount than the cost of the item, but in the end, you own it outright 100%. The finance is secured against your Compac Home, so if you can’t keep up with the payments the lending company will take back the cabin you’ve bought to recover their costs. Finance is usually with an external finance company that specialise in lending and therefore has a far lower and more responsible interest rate.
There are specific rules and restrictions for withdrawing your Kiwisaver and it is only to be used for a permanent house & land purchase where a Title is issued.
This means you will need to permanently fix your Compac Home to the Ground to turn your vehicle purchase into a building under the Building Act. This can be done by getting a foundation plan and council consent. We can recommend the following companies to help you with this process.
Grounded
