Tiny House NZ rent to own

Finance for your Tiny House

In an ideal scenario, you would be a current homeowner (or have an understanding friend or family member to help) and refinance the existing mortgage to buy your tiny house. Home loan finance rates are pretty low in comparison to personal finance so the interest costs will be less. We can recommend a fantastic mortgage broker below if you don’t have one already.

But if you don’t already own a home, you would need to go through a personal finance provider who can set you up with a competitive interest rate designed to help you join the Tiny House NZ movement.

If you don’t own a home or any land, it does help if you have a parent, grandparent, or trusted friend who can go guarantor for you, but it won’t disqualify you if you don’t*.

Generally speaking, if you’re employed full time, have manageable outgoings and a nice clean credit history, you’ll be in a good position*. If not, seek advice from a financial counsellor of your choice before going ahead with any finance.

*Best Case Scenario:
  • You will receive the best Interest rate by refinancing a mortgage on your current Home Loan, a Friends Home Loan or a Family members Home Loan. Home Mortgage rates are currently around 7%.
  • If you would like a Mortgage Broker to refinance your mortgage please give Karen a call on 021 455 353 or reach out to her at: Karen.D’[email protected]
  • Karen will be able to discuss your financial situation and see what possibilities there are depending on current Bank lending criteria.
*Second Best Case Scenario:
  • If you don’t have access to a current Property Mortgage then you are better to go through a third party Tiny House Finance provider. The interest rate is between 8.95% and 18.95% depending on your risk grade.
  • If you do not own land, it helps if you have a guarantor who does.
  • The finance normally requires full-time employment, clear credit and low outgoings.
  • You may be able to borrow up to $70,000 with no deposit

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*Note – Absolute Tiny Houses NZ is not a financial provider. The information on this page does not constitute financial or other professional advice and is general in nature. It does not take into account your specific circumstances and should not be acted on without full understanding of your current situation and future goals and objectives by a fully qualified financial advisor. In doing so you risk making commitment to a product and/or strategy that may not be suitable to your needs. Absolute Tiny Houses NZ does not assume any responsibility for giving financial or other professional advice and disclaims any liability arising from the use of the information. If you require financial advice you should seek the services of a qualified financial counsellor/advisor.  

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Tiny House NZ rent to own – what is it?

Joining the Tiny House NZ movement does require a financial investment, and we understand that not everyone can afford to pay for their new tiny home upfront. If you already own land or have a trusted mortgage broker it can be easier, but for those who don’t, getting a loan for a tiny house may be a better option than you’d think.

This is where our Rent To Own option to finance your tiny house comes in. For much less than a standard mortgage or rental payment, you can rent to buy your tiny home and have 100% equity in as little as five years*.

While Absolute Tiny Houses NZ is not a finance provider, we can put you in touch with one that thoroughly understands the Tiny House NZ movement and can help you get in on the tiny action with optimised finance for tiny home.

Benefits of renting to own a Tiny House NZ

Much like a standard property loan, a loan for a tiny house involves paying off the cost of the house over an agreed period with an agreed interest rate. But unlike a standard property loan, you’re not left with a million dollars to pay off over several generations! You could be all payed up and in the black within five years*.

Repayments on a loan for tiny house are typically between $180 – $300 a week – manageable on almost any budget*. This is far less than the repayments on a house!

For the same money you could rent a room in a shared house. But why settle for shared bathrooms and laundries, fights over utility bills, and light-fingered housemates stealing your food from the shared fridge? It may be a tiny house, but it will be your house full of your stuff. And in as little as five years, you’ll be the sole stakeholder in your investment*.

On top of all this, by selecting some clean energy extras, you can slash your utility bills and use the extra money for the rent to own repayments – you may actually end up saving money if you get the right setup*!

*Note – Absolute Tiny Houses NZ is not a financial provider. The information on this page does not constitute financial or other professional advice and is general in nature. It does not take into account your specific circumstances and should not be acted on without full understanding of your current situation and future goals and objectives by a fully qualified financial advisor. In doing so you risk making commitment to a product and/or strategy that may not be suitable to your needs. Absolute Tiny Houses NZ does not assume any responsibility for giving financial or other professional advice and disclaims any liability arising from the use of the information. If you require financial advice you should seek the services of a qualified financial counsellor/advisor.

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