How to Get Your Bank Onboard to Fund a Pre-Built Granny Flat in NZ
Adding a pre-built granny flat—also known as a minor dwelling—to your property can be a smart, future-focused investment. Whether you’re creating space for family, adding a home office, or generating rental income, securing finance is often the first step. And for many Kiwis, that means getting your bank onboard.
If you’re considering a pre-finished granny flat like the ones we deliver at Smart Granny Flats, here’s a simple guide to help you approach your bank and get the funding approved.
1. Highlight the Financial Benefits of a Granny Flat
Banks want to see that your project adds value. Show them the upside of investing in a pre-built minor unit:
Rental Income – Renting your granny flat could offset your mortgage or provide extra income.
Increased Property Value – Granny flats can boost resale value and appeal to future buyers.
Lower Build Costs – Pre-built minor dwellings are faster to install and more cost-effective than traditional builds. Many of our customers have seen significant savings and quick turnaround times.
Pro tip: Collect a few examples of similar homes in your area that have added value through a minor dwelling.
2. Review Your Current Financial Position
Before speaking to your lender, make sure you’re ready with:
Equity – More equity often means more flexibility with borrowing.
Stable Income & Expenses – Be prepared to show that you can manage the additional repayments.
Clean Credit Record – If you’ve had past issues, have a clear explanation ready.
3. Present a Clear and Professional Proposal
Banks are more likely to say yes when your plans are well thought out. Your proposal should include:
A full quote from your pre-fab granny flat supplier (including transport, consents, and installation)
Expected rental return or value uplift
Project timeline and compliance steps
At Smart Granny Flats, we can provide a detailed quote and compliance info to help support your bank submission.
4. Explore Your Finance Options
If your current bank isn’t flexible, consider other ways to fund your granny flat:
Mortgage Brokers – They can negotiate better terms across multiple lenders.
Specialist Lenders – Some are more open to financing minor dwellings.
Home Loan Top-Ups – Topping up your mortgage can be a simple way to access extra funds.
At Smart Granny Flats we offer finance to approved purchases. Find out more.
5. Prepare for the Property Valuation
Most banks will request a property valuation. Make it easier for the valuer:
Share details about the minor unit, its location on your property, and intended use
Show comparable homes in your area that already have granny flats
6. Show How This Fits Your Long-Term Plan
Banks want to know their investment is secure. Share your vision:
Will the flat generate passive income?
Is it for a family member—saving future rental or aged-care costs?
Could it be part of your retirement strategy?
Granny flats often meet multiple long-term needs, and banks value that kind of foresight.
7. Be Patient and Prepared
Banks may have questions or require more info. Stay persistent, be transparent, and get expert help if needed. Working with a team like Smart Granny Flats can give you a head start—we’ve supported many clients through this process.
Ready to Make It Happen?
A pre-built minor dwelling is a cost-effective, low-stress way to add value and space to your property. With the right preparation, getting your bank onboard doesn’t have to be complicated.
Here’s how we can help:
✅ Browse our Minor Units: www.smartgrannyflats.co.nz
✅ Request our free guide: The Ultimate Guide to Adding a Granny Flat
✅ Let’s talk: Contact Smart Granny Flats today to find out if a granny flat is the right move for your property.