Can You Get a Mortgage on a Mobile Home in British Columbia?

More people look to manufactured homes as a way to own something without breaking the bank. Smart move. But here's where it gets tricky—getting a mortgage for these homes is nothing like financing a regular house.

Can you get a mortgage for a manufactured home? Sometimes. It depends on factors most people don't know about.

For informational purposes only. Always consult with a licensed mortgage or home loan professional before proceeding with any real estate transaction.

Quick Facts About Mobile Home Financing in B.C.

• Modular homes aren’t mobile homes. Their different manufacturing process means they’re treated like regular houses. Easy financing!
• Most lenders won’t do mortgages for mobile homes on rented lots.
• You CAN, however, get other types of financing for mobile homes. Chattel loans are the most common.
• Age matters—mobile homes over 20 years old are tough to finance
• Land ownership changes everything. Buying the land? You have more options.
• CSA codes determine your financing options. Find the sticker before you make an offer.

What Type of Home Are You Really Buying?

This matters more than you think. Banks care about the differences between prefab homes. A lot.

Modular Homes (Easy Financing)

Built in sections (“modules”) at a factory. Trucked to your site. Assembled on-site on a permanent foundation. Technically speaking, it’s a manufactured home.

But here’s the difference: once it's assembled, you can't tell it wasn't built on-site from scratch. It looks like any other site-built house. It’s built to the same standards, too. As far as financing is concerned, there’s no difference.

These get regular mortgages. No special hoops to jump through.

Mobile Homes (Tricky Financing)

Built as one complete unit in a factory. Moved to your site in one piece. Placed on a non-permanent foundation like blocks or steel piles. Mobile homes have a serial number just like a car and can be moved again if needed.

This is where financing gets complicated.

Most of a site-built home’s value appreciation is in the land, while the structure itself deteriorates over time. Mobile homes aren’t attached to the land, so they’re treated more like depreciating assets, like cars.

They can appreciate. It’s just not a near-guaranteed thing.

Ready-to-Move (RTM) Homes

Similar to mobile homes, but often higher quality. Built in one piece at a factory. Moved to your building site.

Financing depends on the specific codes and foundation type. Some qualify for mortgages, others don't.

The CSA Code That Controls Your Financing

Every manufactured home has a sticker with a code that determines your financing options.

A-277 Code = Modular Home. Regular mortgage rules apply. Banks treat these like site-built homes.

Z-240 Code = Mobile Home. Special financing needed. Most banks won't do regular mortgages.

Can't find the sticker? Check inside kitchen cupboards or on the electrical panel. No sticker usually means no financing from traditional lenders.

Age Restrictions for Financing Mobile Homes

Many lenders won't finance mobile homes over 20 years old. Period.

Built before 1995? Even tougher. These older homes were made to RV standards, not housing codes. Some lenders might go up to 25 years, but options get limited fast.

Here's a trick: Major renovations can sometimes reset the "effective age" for lending purposes.

Foundation Requirements Matter for Financing

Want financing? Your home needs proper tie-downs and either:

• Concrete foundation
• Steel piles
• Proper concrete pedestals

Wooden blocks won't cut it for most lenders. The more permanent your foundation looks, the better your financing options.

Electrical Safety Requirements for Mobile Homes

You need a valid electrical certificate to get financing. Either:

• Current CSA certification, or
• BC Safety Authority Silver Label

No certificate? No financing. Get an electrical contractor to inspect before you apply.

Your Mobile Home Financing Options in B.C.

Traditional Mortgages (Best Rates)

When it works: Modular homes on land you own. Most mobile homes on owned land.

Requirements:

• 5% down (homes under $500,000)
• 10% down (remaining balance under $1.5 million)
• 20% down (any transaction priced above $1.5 million)
• Good credit score
• CMHC insurance available

Reality check: Most banks will only do this for modular homes, not mobile homes. If they do offer traditional mortgages for mobile homes, you’ll have to buy the land too.

Chattel Loans (Most Common for Mobile Homes)

Think car loan, but for your house. The loan follows the home, not the land. It’s a secured personal loan, which means your property is used as collateral.

When it works: Mobile homes in parks. Homes on leased land.

What to expect:

• Higher interest rates
• Shorter terms (15–20 years max)
• Typically 5%–10% down payment
• CMHC insurance required
• Can move with your home

Which banks do these: TD, RBC, BMO, and CIBC all offer chattel loans.

Personal Loans (Small Homes Only)

Best for: Homes under $100,000. Quick purchases.

Limits: Usually max $100,000. Higher rates. Shorter terms.

Decent backup option if other financing falls through. Also great for tiny homes, which are frequently even more car-like than mobile homes.

Private Lenders (When Banks Say No)

When to consider: Older homes. Unique situations. Credit issues.

What to expect:

• 65% financing in parks (35% down)
• 75% financing on owned land (25% down)
• Higher rates but more flexibility
• Shorter terms

Buying With Land vs. Mobile Home Parks

Buying With Land (Easier Path)

When you own the land under your home, everything gets simpler.

Financing options:

• Land-home package loans
• Traditional mortgages (for modular homes)
• Better rates and terms
• CMHC insurance available

The catch: You're buying land too. Higher total cost upfront.

Mobile Home Parks (Trickier)

You own the home, but rent the space. Changes the whole financing game.

What you need:

• Non-disturbance agreement with the park (means that you can’t be evicted from the leased space if the park owner goes into foreclosure or bankruptcy)
• Tri-party agreement (you, your lender, and the park owner)
• Must meet park financing requirements
• Park rent gets added to your debt ratios for qualification purposes
• The home must be deregistered from the personal property registry

The catch: Fewer lenders will finance park homes. Those that do charge more.

Other Costs to Budget (Beyond the Purchase Price)

• CMHC insurance: 2.8% to 4% of loan amount
• Park rent: $400–$800+/month (varies by location)
• Home insurance: 20%–30% more than regular home insurance
• Moving/setup: $5,000–$15,000
• Electrical inspection: $500–$1,500

Common Mistakes That Kill Deals

Mistake 1: Assuming It's a Modular

Some sellers list their homes as "modular" when they’re actually mobile. The lender finds out during appraisal. Deal dies.

Solution: Check the CSA sticker yourself before making offers.

Mistake 2: Not Getting Pre-Approved

You shop for homes without knowing your financing options. You realize you can’t actually get the financing you were planning for the homes you’re looking at. Back to the drawing board.

Solution: Talk to lenders first. Know your real budget and what types of property your lender is willing to finance.

Mistake 3: Ignoring Park Rules

Some parks won't work with certain lenders. Or they have extra requirements. No cooperation means no financing.

Solution: Check park financing policies before making offers.

Mistake 4: Skipping Inspections

Electrical or structural issues kill financing for mobile homes even more than for regular homes.

Solution: Get inspections early. Fix problems before applying, or move on to a different house.

Red Flags That Kill Financing

Watch out for these deal-killers:

• Home over 25 years old
• No permanent foundation
• Located in flood zones
• Park with financial problems
• Missing or altered CSA certification
• Structural modifications without permits

Any of these? Expect financing challenges.

Step-by-Step Guide to Financing Mobile Homes

Step 1: Identify Your Home Type

Find that CSA sticker. Know if you're dealing with A-277 or Z-240.

If the CSA sticker is missing, call a professional appraiser. Re-certifying gets the home a Silver Label.

Step 2: Check Age and Condition

Get the manufacturing date. Older than 20 years? Prepare for limited options.

Step 3: Decide on Land

Buying land, too? Or looking at parks? This determines your financing path.

Step 4: Get Pre-Approved

Talk to 2–3 lenders who actually do manufactured homes. Know your options before house hunting.

Step 5: Secure Required Documents

• Electrical certificate
• Park agreements (if applicable)
• Home specifications
• Insurance quotes

Step 6: Apply and Close

Work with experienced professionals who understand manufactured homes.

BC Lenders Who Finance Manufactured Homes

Stop wasting time with lenders who don't do manufactured homes.

Major Banks

• TD Canada Trust - Does both mortgages and chattel loans
• RBC - Chattel loans, some mortgages
• BMO - Limited programs
• CIBC - Chattel loans

Reality: Big banks are picky. Strict rules. But best rates if you qualify.

Credit Unions (Often Your Best Bet)

Local credit unions understand BC's market better. More flexible rules. Often say yes when banks say no.

Why they work better:

• Know local parks and areas
• More flexible on age and condition
• Better service for unusual situations
• Competitive rates

Private Lenders

When to use: Banks rejected you. Older home. Complex situation.

What they offer:

• Speed (close in 2–3 weeks)
• Flexibility on property condition
• Less strict credit requirements
• Higher rates but available options

Manufactured Home Financing FAQ

Q: Can I get CMHC insurance on a manufactured home?

A: Yes, if it meets CMHC standards. Modular homes usually qualify. For mobile home mortgages, many lenders outright require CMHC insurance.

Q: What's the difference between a chattel loan and a mortgage?

A: Chattel loans are secured against the home itself and don’t include land. Mortgages secure against the home and the land. Different rules, different rates.

Q: Do I need special insurance?

A: Yes. Mobile home insurance is different from regular homeowners insurance. Insurance usually costs more for mobile homes; because they’re movable, they’re subject to more risks.

Q: Can I move my home if I have a chattel loan?

A: Usually yes. The loan moves with the home. Check your loan terms first.

Q: What if the CSA sticker is missing?

A: Get an appraiser's opinion on the home classification. It might still be financeable.

Q: Are manufactured homes a good investment?

A: They provide affordable housing, but don’t always appreciate like regular homes. Buy for lifestyle, not investment.

Working with Mortgage Brokers vs. Going Direct

When Brokers Help

• Multiple lender relationships
• Know which lenders do manufactured homes
• Handle paperwork and negotiations
• Save you time shopping around

When to Go Direct

• Simple modular home purchase
• Strong credit and straightforward situation
• Want to build rapport with your lender
• Looking for specific bank programs

Reality: For mobile homes, brokers often know the specialty lenders better.

For informational purposes only. Always consult with a licensed mortgage or home loan professional before proceeding with any real estate transaction.

So, Can You Get a Mortgage on a Mobile Home?

You can get financing for manufactured homes in BC. But it's not like buying a regular house.

Success comes down to understanding what you're buying, knowing which lenders work with your home type, and having realistic expectations about rates and terms.

Modular homes? Pretty straightforward financing.

Mobile homes? Takes more work, but definitely doable.

The key is working with people who understand this market. Don't waste time with lenders who don't work with manufactured homes.

Your affordable home ownership dream? Totally achievable. Just need the right roadmap to get there.