How to get a loan to Finance a granny flat

The construction of a granny flat is permitted in NSW needs to be certified by the local council or an accredited certifier. This can be done without a development application if the standards specified in the State Environmental Planning Poilicy (Affordable Rental Housing) 2009) are met.  

Some of the standard requirements to build a granny flat include²: 

• To  be established in conjunction with another dwelling (you home). 
• On the same lot of land as your home (and not an individual lot in a strata plan or community title scheme)
• May be within, attached to, or separate from your home. 

To get your granny flat approved as complying development, you will need to complete your nominated accredited certifier or council’ approved complying development certificate (CDC) application form. This process can take up to 20 days to receive approval. In the case that your granny flat does not meet these requirements for complying development, you will need to lodge a full development application with your local council.

If you are looking to build a granny flat in Victoria certain conditions must be met. These conditions can vary between conunciles, however will be in relation to the building codes, regulations, planning permits and application process³. 

To understand the specific requirements involved in your council to build a granny flat you can find your local council here. 

In order to build a granny flat on your property in Queensland you will need to ensure that you meet the requirements outlined by the local council. In 2014, the Brisbane city council developed the Brisbane City Plan 2014⁴. The CIty Plan applies to granny flats in residential zones and provides details on how to check planning approval and basic design requirements. 

In Queensland a granny flat can be a maximum of 80sqm in size and if it is for a member of your household it does not require council approval. If you would like to build a granny flat bigger than 80sqm or more than 20m from your main home then you will be required to lodge a development application. Other basic requirements that can be met with the construction of your granny flat without the need for council approval include: 

• Maximum height and storeys includes 9.5m and two stories if the dwelling is built and complies with the following development codes - character residential (CR), low density residential (LDR), low-medium density residential (LMR1 & LMR2), rural (RU), emerging community (EC) and environmental management (EM).
• Maximum height and storeys includes 11.5m and three stories if the dwelling is built and complies with the following development codes - medium density residential zone (MDR) and low-medium density residential zone (LMR3). 
• One car parking space must be provided for both the granny flat and one for the main house. 

To determine whether you need to lodge an application with your council to build your granny flat, it is recommended by local councils to speak with a building certifier or consultant town planner. 

In order to build a granny flat in South Australia, you will need to seek council approval and ensure that the following basic requirements⁵ are met: 

• A granny flat will only be considered when the site is a minimum of 1,000sqm in a sewered area of 1,200sqm in a non-sewered area
• Maximum floor area of the granny flat is restricted to 72sqm.
• The building should have an open floor plan with the only separate room being a bathroom. If you are looking to build a self-contained residence, the laundry is required to be integrated into the bathroom or the kitchen. If a separate room such as a bedroom is genuinely required for practical reasons, there should be a maximum of one.
• The granny flat should not be internally accessible from another part of the overall building, unless under the main roof of your property. 
• The granny flat should be connected to the same services as the main house. 
• The granny flat should share the same driveway as the main house, but is permitted to have a separate car space. 
• Appropriate parking and open space - minimum of 20sqm - should be provided. 

Whilst it is important to understand these requirements before proceeding with an application, each council may have their own specific requirements. Therefore the above list should be viewed as a guide, as all applications are considered on their individual merits and situations may vary. 

Basic requirements across Tasmania include, the maximum size of a granny flat is to be no more than 30% of the total area of the principal property and they can be rented to anyone⁶. 

Similarly to other states, Tasmania has no statewide policy on what you can and can't do when it comes to building a granny flat. Therefore the requirements will vary depending on your local council. 

When looking to build a granny flat in Western Australia there are many planning requirements to be met. These are outlined in the Residential Design Codes and advise on the minimum lot size, maximum floor area and parking requirements. These requirements can vary depending on your local council. 

If you are building a granny flat in WA, you will need to apply for building approval with your local council⁷. This is to ensure that the granny flat meets the safety (structural and fire), health, amenity and sustainability requirements of the Building Code of Australia (BCA). 

You will be able to understand the specific process for your situation to get building approval by speaking with the building approvals department at your council.  

Regulations for granny flats in the ACT are covered under the Planning and Development Regulation 2008. The basic requirements that you will need to ensure your granny flat adheres to are the following⁸:

• Property must be a minimum size of 500sqm
• Granny flat must be minimum size of 40sqm and a maximum of 90sqm
• Compliant with the total plot ratio allowable for the block of land
• Granny flat must be easily adaptable to suit the needs of people with disabilities as per the Australian Standard AS 4299 Adaptable Housing (Class C). In order to prove adaptability a floor plan of the granny flat will need to be submitted to council
• The development needs to have a ‘water sensitive urban design’, therefore achieving a minimum 40% reduction in mains water consumption
• Compatible with exterior building materials of existing buildings in the neighbourhood.
• Compliant with setbacks
• The granny flat should provide open space for tenants, with reasonable levels of privacy for adjoining residential blocks
• The granny flat cannot obstruct pedestrian access
• At least one car parking space to be provided. 

If your proposed granny flat meets the above criteria you are able to lodge your development application with your local council, where you will follow their process to get approval. 

In order to build a granny flat in the Northern Territory you will need to obtain a building approval by speaking with an NT registered building certifier. They will be able to assess the building application, issue building permits, undertake site inspections and issue occupancy certification on the completed build. 

In some cases in the NT, you may need to get a planning approval before an occupancy certification can be issued. However planning approval is not required if your granny flat meets the requirements for your local zone that are set under the NT Planning scheme 2020⁹ in these areas:

• Applicable overlays
• The maximum floor area of the granny flat
• Being under the building height limit
• Minimum setbacks from neighbouring properties
• Any parking and landscaping requirements
• Requirements for power, water and sewerage or on-site waterwaste management. 

As each zone will have their own requirements in these areas it is important to understand what is applicable to you but finding the zone that applies to your land here.