Overview
Financing a mobile home in Canada presents unique challenges compared to traditional home mortgages. The main factors influencing your options include whether you own the land your home is on, the age and condition of the mobile home, and your credit situation. While major banks offer limited products, specialized lenders, credit unions, and alternative lenders provide a range of solutions tailored to mobile and manufactured homes.
Major Mobile Home Mortgage Lenders in Canada
Traditional Banks
- Some major banks, such as RBC (Royal Bank of Canada) and TD Canada Trust, may offer mortgages for mobile homes, but this is relatively rare and usually limited to situations where you also own the land and the home is permanently affixed.
Credit Unions
- Credit unions are more likely to provide financing for mobile homes, both on owned land and in mobile home parks. For example:
- East Coast Credit Union (Nova Scotia): Offers mortgages for mobile and modular homes, whether on owned land or in a mobile home community. They allow borrowing up to 80% of the home’s appraised value.
- In British Columbia and Ontario, local credit unions are often your best bet for chattel loans (loans secured by the mobile home but not the land).
Alternative and Private Lenders
- BHM Financial: A direct lender providing mobile home loans across Canada, including for applicants with bad credit. They approve most applications, including those on rented lots or in mobile home parks.
- YoureEquity.ca and other private lenders (especially in BC and Alberta): Offer equity-based and alternative mortgages for mobile homes where traditional lending is difficult. They can be more flexible with credit and income requirements but may have higher rates.
- SevenLending.ca: Offers both chattel loans (for homes on rented pads) and land-home loans (for homes on owned property), explaining the pros and cons of each option.
Types of Financing for Mobile Homes
| Financing Option | Description | Typical Use Case | Interest Rates | Amortization |
|---|
| Conventional Mortgage | Mortgage on mobile home + owned land, home is permanently affixed | Home on owned property | Lower | Up to 30 years |
| Chattel Loan | Loan secured only by the mobile home (not the land) | Home in a park or on leased land | Higher | 15–20 years |
| Private/Alternative Loan | Flexible qualification, higher rates, for bad credit or unique situations | Difficult cases or credit challenges | Higher | Shorter terms |
| Credit Union Loan | Often used for mobile homes, flexible with property type | Home in parks or rural areas | Varies | Varies |
Provincial Variations
- Ontario: Financing through traditional banks is rare for mobile homes; credit unions or private lenders are usually necessary. Expect higher rates and stricter requirements.
- British Columbia: Financing is available from select banks and credit unions, depending on location and home condition. Chattel loans are common for homes on rented pads.
- Alberta: Options exist but come with stricter loan terms and in-depth financial scrutiny. Zoning and park approval are important.
- Atlantic Canada: Credit unions like East Coast Credit Union provide flexible mobile home mortgages, both for homes on owned land and in communities.
Key Considerations for Mobile Home Mortgages
- Land Ownership: Owning the land allows access to more conventional mortgage products and lower rates.
- Home Age/Condition: Newer mobile homes are easier to finance; older units may face restrictions or higher rates.
- Park Approval: For homes in mobile home parks, lender approval may require park owner consent.
- Loan-to-Value (LTV): Lenders typically offer lower LTV and shorter amortization periods for mobile homes, especially if the land is not owned.
- Insurance: Most lenders require the mobile home to be insured.
Next Steps and Recommendations
- Compare Options: Use a comprehensive platform like theratefinder to compare rates and lenders for mobile home, residential, commercial, and construction mortgages. Start your application at theratefinder.ca/onboarding for a personalized solution from top Canadian lenders.
- Consult Local Credit Unions: Especially if your home is in a park or on leased land.
- Explore Private Lenders: If you have unique circumstances or credit challenges.
- Prepare Documentation: Be ready to provide details on the home, land status, park approval (if applicable), and your financial situation.
Summary
Financing a mobile home in Canada is possible through a mix of credit unions, private lenders, and select major banks—but the process is more complex than for conventional homes. Your best approach is to compare multiple lenders, understand the impact of land ownership, and explore both chattel and land-home loan options. For tailored rate comparisons and expert guidance, start your search with theratefinder to secure the best solution for your situation.