Tips on taking out a Tiny House loan

Buying a Tiny House on wheels is an investment. For a lot of people, it makes sense to take out a loan for it. When taking out a loan for a Tiny House, it is best to take a few things into account.

Tips Loan Tiny House

1. Know your budget

Before you start exploring loan options, it is important to determine your budget. In doing so, 3 questions are important:
- How much can you afford to repay the loan each month?
- How much money can you spend in total on the purchase of the Tiny House?
- Also take into account any additional costs such as transport, installation and other possible extras.

2. Study different types of loans

There are many different loan options available, including personal loans, mortgages and loans for mobile homes, for example. Make sure you research and compare all options before deciding which one is most applicable.

Which type of loan you take out is closely related to how you will use the tiny house (as a holiday home, permanent home, care home, etc.) and its location.

For a Tiny House on wheels, the installment loan or a renovation loan is an option.
If you place the tiny house in a permanent location, there are options with some banks themselves to make a reborrowing of your mortgage loan.
We help our customers get the most suitable type of loan.

3. Work on your credit history

Your credit history can play a big role in determining your loan options and interest rates. Make sure your credit history is in good shape before you apply for a loan.
Among other things, the bank looks at your income, your estimated expenses and any other loans.
Tiny Wonder can assist well in this too.

4. Consider a co-signer for your loan Tiny House

If your credit history or income is not strong enough to qualify for a loan, it may help to have a co-signer. This is someone who agrees to be responsible for the loan with you and is stronger in terms of credit history and income.

5. Pay attention to the interest rate, term and conditions of your loan Tiny House

Banks can differ famously between themselves in terms of interest. This is closely linked to their national credit policy. It is often better to choose a fixed-rate loan so that you know exactly what you have to pay monthly and can manage your budget well.

The term of the loan can vary from bank to bank. The longer the term, the lower your monthly payments, but the more interest you will pay in the long run. Compare loan terms and choose the option that best suits your budget and financial goals.

View the costs and fees: Besides interest rates, you should also consider the fees and charges that banks charge when taking out a loan. These may include filing fees, notary fees and insurance costs. Compare these charges and choose the bank with the lowest fees.

6. Be prepared for unexpected costs

Even if you have carefully determined your budget, there can be unexpected costs crop up when owning a Tiny House on wheels. Make sure you have some savings behind for any maintenance, repairs or upgrades that may be needed. A healthy rule is to keep 5% of the purchase price of the tiny house in reserve for upgrades and maintenance.

7. Speak to Tiny Wonder

Tiny wonder helps you get the best credit. We have good contacts at different banks and therefore know what is feasible and how to . Quite a few clients have already been able to get significantly better interest rates as a result which makes a nice difference in the wallet.

Tips Banks

It is a good idea to compare different banks and loan options in Belgium.

Here are some Belgian banks we know of that offer loans for Tiny Houses on wheels:

1. Beobank offers a personal loan with a fixed interest rate and monthly repayments to finance your Tiny House. You can borrow up to €75,000 with a repayment period of up to 120 months.
2. BNP Paribas Fortis offers several types of loans, including a renovation loan and a personal loan. The renovation loan can be used to purchase a Tiny House and offers a fixed interest rate with a repayment period of up to 120 months.
3. KBC also offers different types of loans, including a fixed-rate personal loan. You can borrow up to €50,000 with a repayment period of up to 120 months.
4. Axa Bank also offers a fixed-rate personal loan for the purchase of a Tiny House. You can borrow up to €75,000 with a repayment period of up to 180 months.
5. ING also offers several types of loans, including a fixed-rate personal loan. You can borrow up to €50,000 with a repayment period of up to 120 months.

If you have a good contact with a local banker, it makes sense to tap there first. Tiny Wonder has very good contacts at a number of banks. Thus, we can help your as a customer to get the best loan Tiny House.