Quick Answer
Yes. A modular or prefabricated home on a permanent foundation can be financed with an insured mortgage through CMHC Prefab Plus — 5% down on the first $500,000 (then 10% on the rest), up to 95% financing, with construction funds released in up to four stages.
Can you get a mortgage on a modular home in Ontario?
Yes. When a modular or prefabricated home is placed on a permanent foundation on land you own, it is financed as real property — the same as any house. In May 2026, CMHC launched Prefab Plus, a mortgage loan insurance product built specifically for prefabricated homes, including modular and manufactured homes. It gives buyers a defined, federally backed financing path, not a workaround.
CMHC Prefab Plus, at a glance
| Term | What it means |
|---|---|
| Eligible homes | Prefabricated, including modular and manufactured, on a permanent foundation |
| Down payment (1–2 units) | 5% on the first $500,000 of value, then 10% on the rest |
| Down payment (3–4 units) | 10% |
| Maximum loan-to-value | 95% for 1–2 units; 90% for 3–4 units |
| Maximum price | Under $1,500,000 (with less than 20% down) |
| Amortization | 25 years, or up to 30 years for a first-time buyer or a newly built home with less than 20% down |
| Construction funds | Released in up to four stages at no cost |
| Energy-efficient build | May qualify for a CMHC Eco Plus premium discount |
How much you need as a down payment
For a home with one or two units, the down payment is tiered: 5% on the first $500,000 of value, then 10% on anything above that. A $500,000 home needs about $25,000 down. A $1,500,000 home needs about $125,000. If the property has three or four units, the down payment is a flat 10%.
Buying it as a rental? (landowners and investors)
If you are adding a home or suite to a property you will not live in, Prefab Plus has a separate small-rental path. It covers properties of two to four units, with financing up to 80% of value (20% down) and a maximum price under $1,000,000. This is the route for a landowner turning a parcel or a backyard into rental income.
How the money comes out during the build
Prefab Plus releases funds in stages, up to four advances, so you are not waiting for one lump sum at the end:
- First: land and site preparation, including excavation, foundation, and well or septic
- Second: the prefabricated unit on delivery
- Third and fourth: post-installation and finishing costs
That structure lines up with how a modular project actually gets paid for.
Permanent foundation vs. movable: why it matters
The dividing line for financing is not a label — it is whether the home is permanently affixed. On a permanent foundation on owned land, the home is financed under a traditional mortgage. A movable home that is not permanently affixed (the typical mobile-home situation, often on leased land) falls under CMHC chattel financing instead, which usually means a shorter term and a higher rate.
What you need to qualify
Prefab Plus is a regular insured mortgage, so you qualify the same way you would for any home. In plain terms, you'll generally need:
- A steady income that comfortably covers the monthly payments
- A credit score of about 600 or higher (for at least one person on the mortgage)
- Room in your budget once your other monthly debt payments are accounted for
Like any mortgage, the lender also checks that you could still afford the payments if interest rates rose. The easiest way to find out where you stand is to ask a licensed mortgage professional — James Clarke, our General Manager, is a licensed Level 2 Mortgage Agent and can walk you through it in a few minutes.
Where this information comes from
These terms are drawn from CMHC's Prefab Plus homeowner fact sheet and are current as of May 31, 2026. CMHC notes that its programs can change at any time — confirm your eligibility and the current terms with a licensed mortgage professional before you commit. At Modular Homes 400, James Clarke is a licensed REALTOR® and Level 2 Mortgage Agent who has financed and resold modular homes across Ontario, including distressed and default sales.
This page is informational only and is not mortgage, legal, or tax advice.
Frequently Asked Questions
Can I get a mortgage on a modular home in Ontario?
Yes. A modular or prefabricated home on a permanent foundation on land you own is financed as real property. CMHC's Prefab Plus program insures mortgages on prefabricated, modular, and manufactured homes specifically, with as little as 5% down on the first $500,000 of value. A movable home that is not permanently affixed is financed differently, under CMHC chattel financing.
How much is the down payment for CMHC Prefab Plus?
For a home with one or two units, the down payment is 5% on the first $500,000 of value and 10% on the remainder, up to a maximum price under $1,500,000. A $500,000 home needs about $25,000 down; a $1,500,000 home about $125,000. Properties with three or four units require a flat 10% down.
Does adding an ADU or garden suite change the financing?
It can. A house plus a garden suite is a two-unit property, which still qualifies for up to 95% financing. A property with three or four units shifts to up to 90% financing and a flat 10% down payment. If an ADU is part of your plan, factor the unit count in early, because it changes both the down payment and the maximum financing.
Can I use Prefab Plus for a rental property I will not live in?
Yes, through a separate small-rental path. For a non-owner-occupied property of two to four units, Prefab Plus allows financing up to 80% of value (20% down) with a maximum price under $1,000,000. It is the route for landowners and investors building rental units, including factory-built rental suites.