Thinking about adding on a granny flat or tiny home?

Image of a light filled tiny home with wooden furniture, view from the kitchen looking out beyond to the lounge room and big windows.

You’ve got the space.

You'd like the income.

Will lenders back you in establishing a granny flat?

Short Answer? Probably! There’s an easy way to do it, and there’s a more complicated way to do it.

Is there enough equity right now to cover the cost?

Do you have enough income now to cover the loan repayments on the new borrowings?

Is the addition separate to the family home?

If the answer to these three questions is “Yes” then you can go the easy path

If the answer to any of these questions is “No” then we need to do a bit more:

  • Lenders will want to fund this as a construction loan so we need plans, licensed builder contracts and insurance
  • We need an appraisal on your property value once the granny flat is completed
  • We need a rental appraisal as if the granny flat is permanently tenanted
  • If these three things stack up, then the answer becomes “Yes

Before you start – check equity and borrowing power with us: get on to a builder for a firm quote and plans: check with an agent as to the rent return likely: come back to us at North Coast Lending and let us navigate your way to an approval.

We're mortgage brokers based on the Coffs Coast, but service Yamba to Macksville, Grafton to Kempsey, Nambucca, Bellingen & beyond.


We are based on the beautiful Coffs Harbour coast and we offer a complimentary home loan broking service.

Make an appointment today for an obligation-free chat, to talk about what you need and how we can help.

Click here to get in touch.