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Granny Flat Finance

Granny Flat Finance: what it costs, how it works, and who it is not for. Every figure carries the source it came from and the date it was read.

Can you finance a granny flat?

Granny Flat Finance is set by each lender's own credit policy, and the policies differ more than the marketing does. Money Brain has not yet published a lender-by-lender position on this, so this page explains the mechanism and names nothing it cannot source. What is here was read at source and dated.

How current is this page?

Every figure on this page carries the source it came from and the date it was read. Where a lender-by-lender position has not been read at source, the page says so rather than repeating something from memory. Lender policy changes quietly and often.

What decides your answer

Can you finance a granny flat?

Can you finance a granny flat is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

Why people build them

Why people build them is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

How to fund one

How to fund one is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

What decides your answer

Will a lender count the rent?

Will a lender count the rent is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

How the rent is shaded, and by whom

How the rent is shaded, and by whom is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

If you are building it for family, not rent

If you are building it for family, not rent is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

What decides your answer

What it adds to the valuation

What it adds to the valuation is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

What it does to the sale later

What it does to the sale later is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

Council and planning, by state

Council and planning, by state is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

What decides your answer

Minimum land size and setbacks

Minimum land size and setbacks is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

Can it be sold separately?

Can it be sold separately is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

Which lenders fund a secondary dwelling

Which lenders fund a secondary dwelling is decided by the lender's own policy rather than by a general rule, and Money Brain has not published a position it has not read. What is certain is the mechanism: the answer turns on your own numbers and on which lender is asked, which is what a short call settles.

What actually happens

1

Your position checked against policy

2

Borrowing power on real numbers

3

A lender chosen for the structure

4

Pre-approval, then the search

5

See the recommendation, then decide

6

Valuation, then formal approval

7

Documents signed, then settlement

Questions

Can it be sold separately depends on the lender's own policy and on your numbers. Money Brain does not publish a lender position it has not read at source, so the honest answer here is the mechanism rather than a name — and the call gives you the name.

Sources and check dates

Every claim on this page carries the document it came from and the date Money Brain read it. Where no document has been read, the page says so rather than stating a position.

Who wrote this page

Darren Parker, Credit Representative 501592, authorised under Australian Credit Licence 389328. Every figure here was read at source and dated. If a lender's position has changed since the date shown, tell him and it is corrected.

See where you stand before you decide anything

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Updated 13 September 2026