The Ultimate Guide to Financing Your Tiny Home on Wheels (THOW) in NZ (2026)
Tiny homes on wheels have boomed in popularity — as an affordable lifestyle option, a stepping stone into homeownership, or as supplementary accommodation on family land. But as many tiny-home hopefuls discover, finance isn’t as straightforward as for a regular house. In this guide we’ll unpack your real options, who lends to tiny home buyers, what criteria matter, and how Ruru Tiny Homes can help you navigate the process.
The links provided below are included for general information only. Ruru Tiny Homes does not receive referral fees or commissions, and we do not endorse or recommend any finance provider for financial benefit.
Why Tiny Homes Are Hard to Finance with a Traditional Mortgage
First, let’s get one thing clear:
👉 Banks generally will not give a standard mortgage on a tiny home on wheels just by itself. Because it can roll away overnight. Literally.
Unlike a conventional house, a tiny home on wheels is usually classified as a vehicle or caravan, not a fixed dwelling. Traditional mortgages depend on security — something fixed to land with a predictable resale market — and tiny homes lack that for lenders.
This means:
No mortgage against the tiny home alone.
No KiwiSaver First Home Grant or HomeStart Grant for portable tiny homes.
Banks typically want land equity or existing property value first.
So, if you don’t own the land where your tiny home will live, you’ll need to get creative.
1. Using Land Equity or Owned Land to Get Bank Lending
If you do own the land your tiny home will sit on:
✔️ You may be able to reshape or extend your existing mortgage based on the land’s value.
For example, a bank might allow you to borrow against the equity in your section (extend the mortgage), and that “top-up” can be used to fund your tiny home purchase. This is because the security — the land — has predictable value even if the tiny home does not.
Pros
Lower interest rates than personal loans.
Longer repayment terms (like a mortgage).
Cons
Your land is on the line — if repayments slip, the bank can sell your property.
Not all banks are comfortable if the tiny home isn’t fixed permanently.
This option is by far one of the most common pathways for people wanting mortgage-style terms on a THOW.
2. Personal, Unsecured, or Secured Finance
If you don’t own land with equity, the next most realistic routes are personal loans — typically unsecured, or secured by other assets (like another vehicle, investment, etc).
Specialist Tiny Home Lenders
Some finance companies in NZ now offer tiny home loans, structured more like personal or equipment loans (researched Jan 2026).
📌 Home Now Finance – specialist finance for tiny homes. They provide tailored loan options for tiny homes and more flexible approval than banks.
📌 LoanSmart Tiny Home Loans – financing specifically designed for tiny homes, with rates from about 9.95% and loans up to approximately $75,000 (secured and unsecured).
📌 TMF Finance – finance brokers who specialise in tiny home lending, including pre-approval support and flexible deposit options.
📌 Tiny Homes Finance NZ – broker network with relationships across lenders who understand this market.
📌 Credit One – various finance options for moveable assets.
Alternative Finance Companies & Brokers
These providers (e.g., Crester, Alternate Finance) offer tiny home loans outside the bank system:
📌 Crester / Quick Loans / Alternate Finance – loans up to around $100,000–$150,000 for tiny homes, with interest rates often between ~9.95% and 26% p.a. depending on security, income, and credit history.
👉 These are typically personal or secured loans, not mortgages — meaning:
Shorter loan terms (often 3–5 years)
Higher interest rates than bank mortgages
Faster approvals (often same day to a few days)
Pros
Good option if land equity is not available.
Fast and flexible.
Structured for tiny homes specifically.
Cons
Higher interest costs over time.
Shorter terms mean higher weekly/monthly payments.
3. Caravan & RV-Style Loan Options
Some lenders treat THOW similar to caravans, farm vehicles, or plant equipment, and will provide loans akin to motor vehicle finance. These can be appealing alternatives when banks won’t touch them.
Examples include:
Caravans and motor home lenders (including Heartland Bank’s motor vehicle finance suite) who might consider tiny homes like other trailers.
These loans behave similar to personal loans but may offer slightly better rates if the tiny home is used as security.
4. High Deposit / 50%+ Equity Pathway
Some lenders will consider tiny home finance if you have a significant deposit — often ~50% or more. With that level of equity, they’re less exposed to risk, and that opens doors.
This is especially true with the specialist lenders above — they may:
Offer larger loan amounts with high deposits.
Provide terms tailored to individual financial situations.
Key Tip: A large deposit drastically improves your chance of approval and often lowers your interest rate.
5. Family Support, Guarantees & Internal Loans
If you’re leasing land (e.g., on family property), and no other security is available to a bank, one widely used strategy is:
Family collateral / guarantee
Parents, grandparents, or family members can:
✔️ Use their land as security
✔️ Provide a personal guarantee
✔️ Lend you money directly at mortgage-style rates
This avoids high-interest personal loans and keeps repayments within the family at lower cost.
Pros
Lower interest than commercial loans.
Flexible repayment terms.
Keeps home ownership momentum going.
Cons
Requires trust and clear agreements.
Family land is at risk if repayments fail.
6. Work with a Mortgage or Finance Broker
Given how varied tiny home finance rules can be — especially around:
security requirements
loan classification (vehicle vs property)
personal credit vs equity structures —
working with a qualified mortgage broker or finance advisor is highly recommended.
They can tap second-tier lenders and banker relationships you might not access yourself.
Summary — How to Choose the Best Finance Path
When you own land with sufficient usable equity, the most realistic finance pathway is usually through a bank. In these cases, lending is typically structured as a mortgage top-up or a restructure of an existing home loan, using the land as security rather than the tiny home itself.
If you do not own land but have a stable and reliable income, bank mortgages are generally not available. However, specialist tiny-home lenders or personal loan products may be an option, depending on the loan amount, your credit history, and your overall serviceability.
Where a high deposit is available — often around 40 to 50 percent or more — some specialist lenders are willing to consider larger loan amounts and, in certain cases, offer more favourable terms than would otherwise be available with a low deposit.
For people leasing land, another common pathway is to use family property as security. This can be done through a family guarantee, secured lending arrangement, or an internal family loan, allowing access to lending at lower interest rates than unsecured finance.
If there is no land ownership, no usable equity, and only a small deposit available, options become more limited. In these situations, bank lending is typically not available, and finance may need to be sourced through higher-interest personal loans or second-tier lenders, with shorter loan terms and higher repayment commitments.
How Ruru Tiny Homes Can Help
At Ruru Tiny Homes, we’ve helped many clients secure finance — including providing valuations and detailed lender information that banks and finance companies request. This kind of preparation has made approvals significantly more likely.
💡 If you:
have land that could act as security,
have significant deposit,
or want to explore lender options including second-tier and specialist tiny home finance,
then get in touch with us — we can walk you through the options and help package the right application for your situation.