Whether a factory-built home can get a regular mortgage depends mostly on one thing: the standard it was built to. A modular home certified to CSA A277 is built to the same building code as a site-built house and is usually financed like one; a manufactured home certified to CSA Z240 is treated as a specialty product with fewer lenders. This page covers that distinction, what lenders and mortgage insurers look for, construction financing for a modular build, and appraisals. It is part of our guide to property types in Canada.
Mobile homes in parks, pad rent and chattel loans are covered in buying a mobile home, and homes too small or too mobile for any of these standards in buying a tiny home.
Types of factory-built homes
| Type | Standard | Foundation | Building code | Mortgage treatment |
|---|---|---|---|---|
| Modular home | CSA A277 | Permanent (concrete) | Same as site-built | Same as site-built |
| Panelized home | Provincial building code | Permanent | Same as site-built | Same as site-built |
| Manufactured home | CSA Z240 | Varies (may be on a chassis) | Different standard | Restricted: fewer lenders, often higher rates |
| Mobile home | Older standard or none | Not permanent (wheels or chassis) | May not meet current code | Very limited; see buying a mobile home |
| Tiny home | Varies | Varies | Often no standard | Most lenders won’t finance |
The critical distinction
CSA A277 (modular): treated like a regular house. CSA Z240 (manufactured): treated like a specialty product.
This one distinction largely decides whether the home gets a standard mortgage at ordinary rates or faces restrictions, higher costs and a short list of lenders.
Modular home mortgages
A modular home built to CSA A277, on a permanent foundation, on land you own, is generally eligible for the same mortgage products as a site-built house: an insured mortgage with the minimum down payment, a conventional mortgage, a HELOC and refinancing, from banks, monoline lenders and credit unions. The minimum down payment is 5% of the first $500,000 and 10% of the rest for homes under $1.5 million, and 20% at $1.5 million or more. The insurance rules, including amortization limits, are in CMHC mortgage rules.
Requirements for full eligibility
| Requirement | Detail |
|---|---|
| CSA A277 certification | Factory certified; the home carries a CSA label |
| Permanent foundation | Concrete basement, crawlspace or slab; no temporary or adjustable supports |
| Municipal permits | The same building permits as a site-built home |
| Appraisal | Standard appraisal; the appraiser confirms factory-built construction |
| Property ownership | You own the land (not lease it) for most mortgage products |
Construction financing for modular homes
Because a modular home is built in a factory before delivery, the financing timeline differs from a site-built home:
| Phase | Financing | Details |
|---|---|---|
| Land purchase | Land mortgage or line of credit | Buy the lot separately, or include it in construction financing; see buying land and mortgages for vacant land |
| Factory build | Progress draws or builder deposits | The factory takes deposits during construction |
| Delivery and install | Remaining construction funds | Transport, crane, foundation connection |
| Completion | Convert to a standard mortgage | Once the home passes final inspection on its foundation |
The gap between factory payments and mortgage funding is the usual challenge: the mortgage isn’t finalized until the home is complete and inspected on its foundation, so buyers often use a construction loan with progress draws, or bridge financing.
Manufactured home mortgages
Manufactured homes (CSA Z240) face more barriers. A mortgage is possible when the home is on a permanent foundation on land you own, but fewer lenders offer one, rates are often higher, and some lenders shorten the amortization. Credit unions in regions with many manufactured homes, and B-lenders at higher rates, are the usual sources.
What lenders and insurers look for
| Requirement | Detail |
|---|---|
| CSA Z240 certified | Carries the CSA certification label |
| Permanent foundation | On a permanent, code-compliant foundation rather than its original chassis |
| Minimum floor area | Some insurers and lenders set a minimum size |
| Owned land | A leased pad in a mobile home park usually doesn’t qualify |
| Municipal zoning | Zoned for manufactured housing |
| Good condition | The appraiser confirms structural integrity |
Mortgage default insurance criteria are set by each insurer; the general rules are in CMHC mortgage rules.
On leased land: chattel loans
A manufactured home on leased land, such as a pad in a mobile home park, can’t get a standard mortgage because the buyer doesn’t own real property. It is financed with a chattel loan secured by the home alone, registered in the personal property registry rather than the land titles office, usually at a higher rate over a shorter term. How chattel loans work, with a worked payment comparison, is covered in buying a mobile home.
Cost comparison: modular vs site-built
The ranges below are rough comparisons; site-built costs by province and build level are covered in how much it costs to build a house.
| Cost Component | Site-Built | Modular | Difference |
|---|---|---|---|
| Construction cost per sq ft | $200–$350 | $150–$275 | Modular 15–25% less |
| Timeline | 8–18 months | 3–6 months | Modular 50–70% faster |
| Financing complexity | Standard construction mortgage | Factory payments + conversion | Modular more complex |
| Customization | Unlimited | Some limitations | Site-built more flexible |
| Quality control | Variable (weather, trades availability) | Factory-controlled | Modular more consistent |
| Mortgage rate | Standard | Standard (CSA A277) | Same |
| Resale value | Standard | Same as comparable site-built | Same |
Appraisal considerations
Appraising factory-built homes has unique challenges:
| Challenge | How It Is Handled |
|---|---|
| Fewer comparables | Appraiser may use site-built comparables for modular homes on permanent foundations |
| Stigma discount | Some markets apply a 5–10% discount for manufactured homes, even on permanent foundations |
| Depreciation | Manufactured homes may depreciate in some markets (unlike site-built); modular homes on owned land generally appreciate |
| Factory certification | Appraiser must verify the CSA label and confirm it is intact |
What helps an appraisal
- The CSA A277 or Z240 certification documentation
- The manufacturer’s specifications and warranty
- A permanent foundation that is visible and documented
- Comparable sales of similar factory-built homes in the area, if any
- Building permits and inspection certificates
Provincial considerations
| Province | Manufactured Home Prevalence | Key Notes |
|---|---|---|
| British Columbia | High (especially rural and northern) | BC Housing provides resources; many credit unions specialize |
| Alberta | High (oilfield regions) | Strong manufactured home market; multiple lender options |
| Saskatchewan | Moderate | Credit unions active in this space |
| Manitoba | Moderate | Similar to Saskatchewan |
| Ontario | Moderate (northern and rural) | Growing interest in modular for affordability |
| Quebec | Lower | Usinées (manufactured) must meet Régie du bâtiment standards |
| Atlantic | Moderate | Manufactured homes common in rural areas |
Summary
| Home type | Mortgage access | Financing route |
|---|---|---|
| Modular (CSA A277, permanent foundation) | Same as site-built | Any lender |
| Manufactured (CSA Z240, permanent foundation, owned land) | Possible, with fewer lenders | Credit unions, some B-lenders |
| Manufactured (leased land) | Chattel loan | Specialty lenders |
| Mobile home (older) | Very limited | Personal loan or cash |
A factory-built home certified to CSA A277, on a permanent foundation, on land you own, has the same mortgage options as a site-built home. Each step away from that (a Z240 label, a leased pad, no permanent foundation) narrows the lenders and raises the cost.
Sources
The figures and rules on this page come from these sources, last checked against them on September 29, 2026. How we check facts.
- Financial Consumer Agency of Canada: How much you need for a down payment