Construction policy now includes granny flats

To help support more customers with their construction goals, effective 4 November 2024 clients can use the Connective Essentials construction home loan offering to construct a granny flat, where there is an existing main residence on the premises.

Key policy information

Here is some key policy information to consider when your clients are seeking to construct a granny flat.

• Construction of a granny flat where there is an existing main dwelling in place is acceptable.
• Construction of a main residence and granny flat simultaneously is unacceptable.
• To consider new or existing rental income derived from a granny flat on a property, the granny flat will need to be confirmed as independent to the main property with services connected. This can be confirmed via an Advantedge or external valuation report. The maximum 6% rental income cap applies per dwelling.
• Where a granny flat cannot be verified as independent, our shared spaces rental income policy will apply.

This is an exciting enhancement to our construction loan offering which is designed to help make the process simple and stress-free.

Even more reasons to choose Connective Essentials for construction

• Plenty of time to complete the build with an initial 2-year Interest Only period.
• Great value with our standard Principal & Interest rate applied across the Interest Only period.
• Exceptional support from a dedicated credit assessor and case manager to look after you throughout the construction experience.
• No progressive drawdown fees.
• No valuation fees.
• No loan variation fees.

Further information

For more information get in touch with your Connective Home Loans BDM.