Granny flat costs will naturally vary depending on the size of the structure you intend to build and whether you intend to build it under the main roof of your house or as a separate dwelling in your backyard. You can compare loans with Savvy, bringing you clear comparison information so you’re able to make the best decision about which finance option is right for you.
Granny flat prices will depend on which of the following building options you choose for your new accommodation:
Naturally, 2-bedroom granny flat costs will be higher than if you opt for a single bed unit. Assuming you’re interested in a separate dwelling in your back yard, you have the options of:
Which option you choose will depend, of course, on the size of your block, your requirements for the size of your granny flat and your budget. In general, it will be cheaper to use existing rooms in your house to create your granny flat. The next least expensive option is converting an existing garage or shed, and the costliest option will be buying a fully constructed granny flat and having it delivered to your property.
According to National Seniors Australia, the average prices you can expect to pay for a kit granny flat with a slab, plumbing and electricity in 2022 might be:
Options that could be included in this price are:
As well as bank fees and any state government or council fees you will be liable for to gain council development approval, you’ll also need to consider the cost of getting electricity, gas and plumbing connected to your new granny flat, as well as the cost of phone and internet connections.
You may also need to put aside funds towards legal costs to cover the advice needed for the purchase and construction of your new accommodation, plus the cost to get a granny flat agreement written up if you are advised that this is a good idea.
The costs to build a granny flat will also depend on your current financial situation, whether you have any usable equity in your home and your current lender’s loan policy towards finance for granny flats. Your loan options include:
Naturally, your best option is to use any savings you may have to fund your new granny flat, but if you need additional finance, you should talk to your existing lender first. Getting a top-up loan will probably be your cheapest option, as you will avoid the additional loan discharge fees and mortgage establishment fees that may be charged if you swap to another lender or start up a new loan. It can cost up to $1,500 to refinance a home loan, depending on whether you have any early exit fees for a fixed rate loan, or whether your existing loan is a variable one which allows more flexibility.
Compare loans to save money
If you compare your loan options with Savvy and find that you can get a far cheaper mortgage rate than your existing loan, you may be better off paying these additional loan switching costs for the long-term gain of refinancing to access a far cheaper interest rate which could save you thousands in interest payments over the life of the loan.
Cashback offers can also assist to offset the cost of swapping home loans. These offers on home loans (ranging up to $6,000) could help you to swap to a cash-out loan and have money left over to pay for furniture for your new granny flat.