Quick Answer
Yes. All major Canadian banks — RBC, TD, Scotiabank, BMO, CIBC, and National Bank — finance CSA A277-certified modular homes on permanent foundations. CMHC-insured mortgages are available for high-ratio purchases. The key requirement is CSA A277 certification and a permanent foundation.
Which Banks Finance Modular Homes in Ontario?
All major Schedule A Canadian banks will finance a CSA A277-certified modular home placed on a permanent foundation:
- RBC Royal Bank ✓
- TD Canada Trust ✓
- Scotiabank ✓
- BMO Bank of Montreal ✓
- CIBC ✓
- National Bank of Canada ✓
- Most Ontario Credit Unions ✓
- CMHC-insured (high-ratio) ✓
1. CSA A277 certification (get this document from your manufacturer through MH400)
2. Permanent foundation (basement, crawl space, or engineered slab — not piers or skirts)
What Lenders Need From You
Standard residential mortgage application documents, plus:
- CSA A277 factory certification for your specific home
- Foundation type confirmation (letter from your foundation contractor)
- Land ownership documentation or land-lease agreement (if in a community)
- Building permit application or approval
- Manufacturer's purchase agreement
Land-Lease Community Mortgages (Fountainhead Villages Model)
If you're buying a home in a land-lease community, you're financing the home only — not the land. This is a different mortgage product:
- Most major banks do not offer conventional mortgages for home-only on leased land
- Specialty lenders (Equitable Bank, Home Trust, some credit unions) offer chattel or portfolio mortgages for land-lease homes
- Down payment requirements are typically higher (10–25%)
- Interest rates are slightly higher than conventional mortgages
- The land lease term must be long enough for the lender's comfort (minimum 10–21 years remaining)
MH400 has relationships with lenders experienced in land-lease modular financing. Contact James Clarke for a referral.
CMHC-Insured Modular Mortgages
If your down payment is less than 20%, you'll require CMHC mortgage insurance. CMHC confirms:
> Modular homes that are CSA A277-certified and permanently affixed to a foundation are eligible for CMHC mortgage insurance under standard residential programs.
CMHC insurance premiums (added to your mortgage):
- 5% down: 4.00% of mortgage amount
- 10% down: 3.10% of mortgage amount
- 15% down: 2.80% of mortgage amount
- 20%+ down: No CMHC insurance required
Getting Pre-Approved: What to Tell Your Lender
When approaching any lender, use this exact language:
"I am purchasing a CSA A277-certified modular home to be placed on a permanent [foundation type] on land I own at [address]. The home will be assessed and taxed as real property. I need a standard residential mortgage."
This framing prevents the lender from defaulting to "manufactured home" products, which have different terms.
Frequently Asked Questions
Is a modular home mortgage the same as a regular mortgage?
Yes — for a CSA A277-certified modular home on a permanent foundation. The rate, terms, and qualifying criteria are identical to a conventional site-built home mortgage. CMHC insured mortgages are also available for high-ratio purchases.
What is the minimum down payment for a modular home in Ontario?
The minimum down payment is 5% for homes under $500,000, same as site-built homes, provided the home is CSA A277-certified and on a permanent foundation. Land-lease community purchases typically require 10–25% down through specialty lenders.
Will the bank appraise my modular home the same as a site-built home?
Yes, for CSA A277 certified modular on a permanent foundation. Request an appraiser with modular experience, as some appraisers default to manufactured home comps, which can undervalue your property. MH400 can refer you to appraisers familiar with modular in Ontario.