Financing Options for Prefab Homes in London
Explore the best financing options for prefab homes in London, including mortgages, loans, and grants, with expert tips for first-time buyers.
💰 Financing Options for Prefab Homes in London: 2025 Buyer’s Guide
Prefab homes in London are mortgageable for a modular (CSA A‑277) home—provided it’s installed on your own land with a permanent foundation.
Buyer’s mortgages can qualify for CMHC insurance, allowing 5–10% down payments.
If placing your prefab on leased land or as personal property, you’ll likely need a chattel mortgage, which is secured against the home itself—not the land—and carries higher rates and limitations.
🏡 Financing Pathways for London, Ontario Prefab Home Buyers
| Financing Option | When It Applies | Key Considerations |
|---|---|---|
| Traditional Mortgage (Land + CSA A‑277 modular home) | Own land, permanent structure, built to CSA A‑277 | Eligible for CMHC-insured mortgage, as low as 5% down; same underwriting as stick-built homes |
| Chattel Mortgage (Land-leased or personal property) | Mobile/manufactured installations not affixed to land | Secured against the home only, typically higher rates, limited refinance ability |
| Personal Loan or HELOC | Secondary units (e.g., backyard cabins) or smaller prefab projects | Unsecured, lower borrowing limits, higher interest—useful for top-ups only |
| Credit Union / Specialty Lenders | Non-standard cases or complex zoning situations | More flexible underwriting; good option when workaround needed |
✅ Key Financing Requirements & Considerations for Prefab Homes in London, Ontario
1️⃣ Classify your prefab home accurately
In Canada, and specifically in London, Ontario, modular homes that meet CSA A-277 certification and are installed on a permanent foundation are treated as real property.
This classification makes them eligible for traditional mortgages with competitive rates.
In contrast, non-affixed prefab or manufactured units — such as those on leased land or temporary foundations — are financed through chattel mortgages.
These often have higher interest rates and shorter terms.
2️⃣ Confirm land ownership and title status
Owning the land where your prefab home sits is critical for securing the best financing.
Land-owned, fixed modular homes are treated like standard site-built properties by most Canadian lenders.
Importantly, this is making them eligible for CMHC mortgage loan insurance and down payments as low as 5% (subject to income and price limits).
🚧 Buyers should also ensure their property complies with all permits and zoning rules for prefab homes in London, Ontario, as non-compliance can delay financing approval or limit future resale value.
3️⃣ Leverage CMHC programs for affordability
CMHC-insured mortgages are available for CSA A-277-certified modular homes built to national standards and placed on owned land.
These programs are particularly valuable for first-time buyers and new construction projects, helping reduce upfront costs and expanding lender options.
4️⃣ Work with local lenders who understand prefab financing
Not all financial institutions are equally familiar with prefab home financing in London, Ontario.
Credit unions such as Libro Credit Union and Meridian Credit Union, along with mortgage brokers experienced in modular construction, can provide tailored solutions.
They can also navigate complex scenarios, such as Accessory Residential Units (ARUs) or hybrid land/home purchase packages, where chattel and mortgage financing may be combined.
💵 Step-by-Step Guide – Get Financing for Your Prefab Home in London, Ontario
1️⃣ Determine your prefab home classification
Identify whether your home is a modular (CSA A-277-certified) unit on owned land or a non-affixed/mobile prefab.
This distinction determines whether you qualify for a traditional mortgage or must pursue chattel financing.
Modular homes on a permanent foundation are treated as real property; mobile units are considered personal property.
2️⃣ Select the right financing route
Traditional mortgage – Best for CSA-certified modular homes on owned land; often CMHC-insured with as little as 5% down.
Chattel mortgage – Suitable for homes on leased land or without permanent foundations; higher interest but more flexible placement rules.
Unsecured financing/HELOC – Ideal for Accessory Residential Units (ARUs), backyard suites, or upgrades.
3️⃣ Partner with lenders experienced in prefab financing
Work with London, Ontario mortgage brokers or local credit unions (e.g., Libro Credit Union, Meridian Credit Union) that understand modular construction financing.
They can navigate lender-specific requirements, mixed chattel/mortgage setups, and CMHC eligibility.
4️⃣ Prepare complete documentation
Gather:
Land deed or lease agreement
CSA A-277 certification from the builder
Builder contract and construction specifications
Site plan and building permits
Providing this upfront speeds approvals and prevents lender delays.
5️⃣ Apply and secure approval
For traditional mortgages, the process mirrors site-built home financing, including appraisal and income verification.
Chattel loans may have fewer documentation requirements but typically carry higher rates and shorter terms.
Discover our expert guide to financing and differences of prefab vs. traditional homes in London — from standard mortgages to chattel loans.
6️⃣ Close the deal and arrange insurance
Confirm your home’s classification with the lender, finalize CMHC mortgage insurance (if applicable), sign financing documents, and secure property or manufactured home insurance before move-in.
🏗️ Common Questions About Financing Prefab Homes in London, Ontario
Can I get a mortgage on a modular home in London, ON?
Yes—if it’s installed on your own land with a permanent foundation and built to CSA A‑277 standards, it qualifies for a traditional mortgage (often CMHC-insured).
What if the home is in a mobile home park or on leased land?
You’ll likely need a chattel mortgage, secured to the home itself—not the land—with typically higher interest and fewer refinancing options.
Is CMHC insurance available for prefab homes?
Yes—for modular homes built to standard and permanently affixed, CMHC may provide mortgage loan insurance, reducing your down payment needs.
Where can I get help in London?
Reach out to local mortgage brokers or credit unions familiar with prefab financing—they can guide you through traditional, chattel, and mixed scenarios.
🔍 Be sure to review our expert guide and comprehensive resource on prefab homes in London, Ontario.
🔑 Your Next Steps for Financing Prefab Homes in London, Ontario
Connect with a local broker or credit union experienced with CSA-A-277 modular mortgages or chattel scenarios.
Confirm CMHC eligibility during pre-approval for low-down mortgage options.
Ask your builder or landlord for documentation confirming CSA classification and modular build specifics.
Already looking to build or need help with financing?
To get started, simply book a free consultation or call us directly today – we’re here to assist!
🧑💼 Request a Free Consultation
📲 Call Us Directly: (705) 345-9337
✅ Ontario-Built | ⚡ Energy-Efficient | 🏡 Fully Customizable | 🚚 Fast Delivery
Alternatively, for your convenience, you can also simply fill out the contact form below and we’ll get back to you soon! 👇
Contact Us
We usually respond within 24 hours!
- Comprehensive Warranty
- Best Price Guarantee
- Exceptional Service
❓ FAQ About Financing Options for Prefab Homes in London
Can you get a mortgage on a prefab home in Canada?
Yes — if the prefab (modular) home is built to CSA A-277 standards, installed on a permanent foundation, and located on owned land, most Canadian lenders will finance it with a standard mortgage. Homes on leased land or without a foundation require chattel mortgages instead.
What is the downside of modular homes?
The main downsides are financing challenges for non-affixed homes, depreciation for mobile models, potential zoning restrictions, and limited resale markets in certain locations. Permanently affixed modular homes avoid most of these issues.
What is the average cost of a prefab home in Canada?
Prefab homes typically cost $150–$300 per square foot (excluding land). A mid-range 1,500 sq. ft. modular home in Ontario can range from $225,000 to $450,000+ depending on finishes and energy efficiency features.
How much is a 900 square foot modular home in Canada?
A 900 sq. ft. modular home costs roughly $135,000–$270,000 before land and site work. In London, Ontario, budget an extra $15,000–$40,000 for foundation, utility hookups, and permits.
What are the best financing options for prefab homes in London, Ontario?
Top options include:
Traditional mortgages (for CSA-certified homes on owned land)
Construction loans (for staged builds)
Chattel mortgages (for non-affixed homes)
HELOCs (using equity from another property)
Personal loans (for small builds or upgrades)
In-house financing (from prefab manufacturers)
What makes prefab home financing in Ontario unique?
Financing depends on CSA A-277 certification, land ownership, and whether the home is permanently affixed. Many Ontario credit unions offer flexible terms, and some lenders accept prefab homes as standard collateral when they meet building code and warranty requirements.
Are there new home construction grants in Canada for prefab homes?
Yes — programs include CMHC Eco Plus (premium refund for energy-efficient homes), the Canada Greener Homes Loan (interest-free financing for upgrades), Ontario’s Save on Energy rebates, and local incentives like London Hydro efficiency programs.
Can I finance a prefab secondary suite in Ontario?
Yes — common options are HELOCs, second mortgages, personal loans, and CMHC’s Secondary Suite Refinance program. Some municipalities also offer local incentives for adding rental units.
Which banks in London, Ontario finance prefab homes?
Major lenders like RBC, TD, BMO, and Scotiabank, plus local credit unions such as Libro and Meridian, offer prefab home mortgages if the property meets CSA certification and permanent foundation requirements.
How long does prefab home financing take in Ontario?
Standard mortgages can be approved in 2–6 weeks. Construction loans may take 6–8 weeks due to staged draw schedules and extra documentation.