Before comparing loan types, there's one question that determines whether any of them apply: is the structure certified as a permanent dwelling? Lenders finance real property. An NCC Class 1A certified home is assessed as part of your property; a caravan-style "tiny home" or an unapproved shed conversion generally is not, and most lenders won't finance it as a dwelling regardless of how it's marketed. See our guide to NCC Class 1A for what that certification actually requires.
Using existing home equity. The most common route for homeowners building a granny flat on land they already own — a mortgage top-up, redraw, or refinance draws on the equity already built up in the main house, and it's typically the lowest-rate option since it's secured against an existing, valued property.
A construction loan. Structured around staged payments as the build progresses, this suits buyers without enough usable equity, or those building on vacant land rather than an existing property. Lenders typically release funds against a certified building contract and progress milestones, which is one more reason certification and a documented specification matter from day one.
A personal or secured loan. For smaller budgets or shorter terms, some buyers use a personal loan — rates are generally higher than a mortgage product, but there's less paperwork and no need to have existing home equity.
Cash purchase. Straightforward where funds are available — no finance approval, no interest, and the fastest path from order to delivery.
Uncertified Structure
Class 1A Certified
This is general information, not personal financial advice — every lender, borrower and property is different. Speak to a mortgage broker or your lender about what actually applies to your situation before committing to a loan structure.
Whichever route you finance through, the Forge 12 is priced transparently at $149,000 as displayed, with the full NCC Class 1A certification pack supplied on handover — the documentation your lender or broker will actually want to see. See our full cost breakdown for what to budget beyond the display price.
FAQ
Only if it's certified as a permanent dwelling (NCC Class 1A). Lenders generally won't finance an uncertified structure such as a caravan-style tiny home or an unapproved shed conversion, because it isn't treated as real property.
Using equity in the existing home through a mortgage top-up or refinance is the most common approach, since the granny flat is being built on land the owner already holds. A dedicated construction loan and, for smaller budgets, a personal loan are the other common routes.
A certified secondary dwelling is generally recognised as adding value, since it's assessed as part of the property rather than a separate structure. The actual uplift depends on your local market and should be confirmed with a valuer or local agent, not assumed.
No. This is general information about how granny flats and tiny homes are commonly financed in Australia, not personal financial advice. Speak to a mortgage broker or your lender about what applies to your situation.
On display in Rockhampton — delivered across Queensland
We'll give you an itemised quote and the certification pack your bank or broker will ask for.