Granny flat finance —
four ways owners actually pay for the build.

Less than most people assume. On the 30 m² plan you need roughly $33k in accessible cash or equity, and the ability to service an $88k loan — about $107/wk in interest at ~6.3% interest-only. Because most lenders also count 70–80% of the expected rent (~$380/wk) toward your serviceability, the build often improves your borrowing position rather than straining it. A broker can give you a firm answer in one conversation using your payslips and current loan statements.

Often, yes — through equity rather than new serviceability. If your home has risen in value since you bought, an equity release re-runs the numbers against today's valuation, and the assessed rent from the granny flat is added to your income side. Owners who were 'maxed out' on 2021 figures frequently find that a 2026 valuation plus $380/wk of assessed rent changes the answer. If the equity path is genuinely closed, the remaining options are cash, a family guarantee, or waiting one valuation cycle.

No — and it would be wrong for us to. E2ES is a builder, not a licensed credit provider, so we never handle your loan application or give credit advice. What we do is refer you to licensed mortgage brokers we work alongside regularly, who already understand our fixed-price contract, our staged payment schedule, and how lenders treat granny flats. The referral is free and there is no obligation to use them.

A construction loan releases money in four stages that mirror the physical build: slab (base), frame, lock-up (roof, walls, windows in), and fit-out/completion. Before each release the lender sends a valuer to confirm the stage is done. Because the E2ES on-site build runs about 4 weeks, the whole drawdown sequence compresses into roughly a month — you're not paying interest on the full amount for months of construction the way you would on a full house build. If you fund via equity release instead, the cash is already in your offset and you simply pay each E2ES stage invoice directly, with no valuer visits.

Bank valuers treat a compliant, council-approved, self-contained secondary dwelling as extra living area and extra income — both of which raise the valuation — but they typically credit it at less than a comparable amount of main-dwelling floor space, and policies differ bank to bank on how much of the rent they will count. Two things protect your valuation: a Class 1a building permit with an occupancy certificate (never an unapproved conversion), and a formal lease showing the rent. An experienced broker will steer your application to the lender with the friendliest granny flat policy that week — this is exactly the kind of nuance that makes the broker referral worth taking.

Yes, with a haircut. Most lenders count 70–80% of the assessed market rent (shading for vacancy and costs) once the dwelling is approved and either leased or supported by a rental appraisal from a property manager. On $380/wk that is roughly $266–$304/wk of assessable income — often enough to swing a borderline application. A few lenders are more conservative on secondary-dwelling rent than on a standalone investment property, which again is a lender-selection question for your broker.

Not at the first meeting. The sequence is: free site visit and fixed-price proposal (no money), contract signing (initial deposit — capped at 5% under the Master Builders HC 8 contract for builds over $20k), then the staged payments across permits and construction. Your finance should be approved before you sign the building contract, so start the broker conversation 4–6 weeks before you want the build to begin. The ~$33k 'cash down' figure on the 30 m² plan is spread across those stages, not paid up-front in one hit.

Yes — and most investor clients should at least run the numbers. Once the OC is issued and the property revalues (typically $180k–$220k higher per CoreLogic Melbourne 2020–25 resale data), you can consolidate the construction loan into your main mortgage at standard rates, or keep it split for clean tax accounting and simply reprice it. The lower loan-to-value ratio after revaluation is also the trigger point for releasing equity toward your next purchase. Allow 2–4 weeks and one valuation fee; your broker will tell you whether the rate saving or the equity release is worth more in your case.

The equity release / mortgage top-up — usually 2–4 weeks to approval, because the security (your existing home) is already known to the lender and the funds land as cash with no stage inspections. A construction loan takes longer to arrange (allow 4–6 weeks) and adds a valuer sign-off at each of the four drawdown stages. Whichever path you take, licensed brokers arrange the lending — E2ES is a builder and only makes referrals.

Yes. The free site visit and fixed-price proposal cost nothing, so take the written proposal to a broker first and start that conversation 4–6 weeks before you want the build to begin — then sign the building contract once approval is in place. The initial deposit at contract signing is capped at 5% under the Master Builders HC 8 contract for builds over $20k, and the remaining cash-down is spread across the staged payments, so nothing large falls due before your finance is settled.