Mistakes to Avoid When Buying a Prefab Home in London
Discover the mistakes to avoid when buying a prefab home in London.
Get expert tips for a smooth, stress-free purchase.
🏠 Mistakes to Avoid When Buying a Prefab Home in London, Ontario
Prefab homes in London can deliver a high‑quality, beautiful home faster than many site‑built homes.
But it’s still a very important decision that affects your finances, living space, and lifestyle for decades.
In London, modules must meet the Ontario Building Code (Part 9) and often CSA A277 certification; they’re assembled on‑site and inspected locally—so permits, zoning and builder selection truly matter.
Critical Mistakes to Avoid When Buying a Prefab Home in London - 30‑Second Checklist
Confirm your lot’s zoning, setbacks, and permit path.
Choose an HCRA‑licensed builder and verify Tarion warranty enrollment.
Budget for land, servicing, foundation, transport/crane, and finishes—beyond “price per square foot.”
Plan site works and winter conditions to avoid frost‑related delays.
Select energy‑efficient assemblies and ENERGY STAR® products to meet SB‑12 and lower bills.
Review contracts (timelines, change orders, warranties) with an Ontario real‑estate lawyer; ensure Tarion coverage.
🏗️ Mistake 1: Skipping Building Permits and Zoning Checks for a Prefab Home in London, Ontario
Even when your prefab home is built in a factory-controlled environment, it must still meet all on-site requirements.
This includes the City of London’s zoning by-law, property setbacks, and building permit process.
These regulations ensure your modular home complies with the Ontario Building Code and local planning rules.
Step one: Visit the City of London Building Permits page to confirm zoning compliance for your lot. Check:
Whether prefab or modular construction is permitted
Minimum setbacks from property lines
Any exterior wall or façade requirements for your neighbourhood
Align your floor plans and exterior finishes with these rules before placing your modular home order — making changes later can be costly and time-consuming.
Pro tip: If you’re planning rental income or a future Additional Residential Unit (ARU), review London’s ARU guidelines — currently allowing up to four units on eligible lots.
Designing for ARU compliance from the start can boost your property’s value and prevent expensive redesigns.
🛠️ Mistake 2: Hiring an Unlicensed Prefab Home Builder in London, Ontario
In Ontario, new‑home builders and sellers must be licensed by the Home Construction Regulatory Authority (HCRA).
Use the Ontario Builder Directory to check licensing status, years active, homes built, and regulatory actions.
Ensure your home will be enrolled with Tarion for statutory warranty coverage (up to seven years for major structural defects).
What “good” looks like
Proof of HCRA licence and Tarion enrollment
Transparent construction drawings, schedule, and references
A clear change‑order process for customization options (e.g., timber frame accents, large windows for natural light)
🔍 If you’re not sure what comes next, explore the complete process of building a prefab home in London, Ontario — from hiring a builder, to permits, to move-in.
💰 Mistake 3: Underestimating the True Cost of Building a Prefab Home in London, Ontario
While prefab homes in London, Ontario, can be more cost-effective than many site-built homes, buyers often overlook significant expenses beyond the advertised “price per square foot.”
These hidden costs can add tens of thousands to your total budget if not planned for early.
Essential cost categories to include in your prefab home budget:
Land & Due Diligence – property purchase, land survey, geotechnical reports, and soil stability testing.
Site Preparation – grading, excavation, foundation or footings, and driveway installation.
Utility Servicing – water/sewer or well/septic connections, hydro, natural gas, and communications cabling.
Transport & Set – delivery of modules, staging area preparation, and crane placement.
Post-Installation Finishing – porch or deck construction, stairs, interior trim, landscaping.
Soft Costs – City of London building permits, engineering and architectural fees, inspection costs, and legal review.
Pro budgeting tip: Request a detailed line-item estimate from your builder that clearly separates factory-built scope (modules, finishes, transport) from on-site scope (foundation, utilities, landscaping).
This transparency helps prevent cost overruns and improves financing accuracy.
Local planning reminder: The City of London’s permit process includes plan review and multiple inspections under the Ontario Building Code.
Build these timelines — and their associated fees — into your schedule and budget to avoid delays.
🌨️ Mistake 4: Skipping Site Preparation and Ignoring Ontario Winter Conditions for Your Prefab Home
Foundations and excavations must be protected from freezing to avoid frost heave and uneven settlement.
If you’re excavating late fall through early spring, you’ll need cold‑weather measures or you may face delays.
Plan grading and utilities before the set date.
Checklist for site readiness
Compaction/soil bearing verified (geotech as needed)
Grading set to drain away from the foundation
Utilities stubbed and located to match the module’s service entry
Access route for trucks and crane (turning radius, overhead wires)
💡 Every element on your site readiness checklist plays a role in the maintenance and longevity of prefab homes in London, from soil bearing capacity to utility alignment and truck access.
♻️ Mistake 5: Ignoring Energy Efficiency Upgrades and Ontario Building Code Compliance in London
Ontario’s Supplementary Standard SB‑12 sets energy‑efficiency requirements for housing under the OBC.
Your design choices—insulation values, windows, air‑sealing, HVAC—must match a compliant SB‑12 package for our climate zone.
Inside the home, prefer ENERGY STAR® certified appliances to cut operating costs and improve comfort.
Smart picks for a modular home
Higher R‑values in walls/roof, airtight assemblies, and heat‑recovery ventilation
Window sizing that balances floor‑to‑ceiling natural light with thermal performance
All‑electric or hybrid heat pumps sized for Ontario winters
📜 Mistake 6: Failing to Verify CSA A277 Certification and Code Compliance for Your Prefab Home in Ontario
Most modular homes assembled in Ontario are evaluated against CSA A277—a procedure for factory certification of modules and panels combined with local code compliance on‑site.
Ask your builder which edition they follow and how inspections are handled once the home is set in London.
🏦 Mistake 7: Treating Financing as an Afterthought in London, Ontario
Many lenders will finance modular homes similarly to site‑built homes once the home is affixed to a permanent foundation, often with CMHC‑insured options for newly built homes (lender‑driven eligibility applies).
Engage your lender early to confirm appraisal approach, draws, and insurance.
📄 Mistake 8: Failing to Review Your Prefab Home Contract and Warranty Terms in Ontario
Before you sign, confirm:
Scope & specs: model, options, construction method, and finishes
Schedule: manufacturing slot, delivery window, on‑site set, and substantial completion
Change orders: pricing and approval path for customization options
Warranties: manufacturer and Tarion coverage (what’s factory vs. site)
Remedies: penalties for delays, dispute resolution
Have an Ontario real‑estate lawyer review everything, including Tarion enrollment details.
✅ Avoiding Mistakes When Buying a Prefab Home in London
Plan & permit: Start with the City’s Building Permits guide and a zoning check.
Vet your builder: Verify licence and Tarion enrollment before paying deposits.
Deep dive: Explore floor plans, customization options, and vetted builders in our complete guide to prefab homes in London, Ontario.
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❓ FAQ: Mistakes to Avoid When Buying a Prefab Home in London
What are the disadvantages of prefabricated homes?
Prefab homes can face higher transport and crane setup costs, limited design changes with certain models, financing challenges if not on a permanent foundation, and resale bias in some markets. Choosing a licensed builder and ensuring code compliance mitigates most of these drawbacks.
Which is better: modular or prefabricated homes?
Modular homes are a type of prefab built in factory sections and assembled on-site to meet full building codes, making them ideal for permanent residences. Other prefab types (like panelized) can be faster to ship but may require more on-site work. For most homebuyers, modular offers the best mix of quality, customization, and financing options.
What mistakes should I avoid when buying a prefab home in London?
Common mistakes include underestimating total costs, skipping zoning and permit checks, choosing an unlicensed builder, ignoring site prep needs, and rushing decisions. Plan carefully, get line-item quotes, and work only with licensed, Tarion-covered builders.
What are common problems with prefabricated houses?
Typical issues arise from poor site coordination, delivery access problems, misaligned factory and site schedules, and exposure to weather before final assembly. Working with experienced modular contractors helps avoid these problems.
Are prefab homes safe in hurricanes or extreme weather?
Yes. Prefab homes built to local codes are engineered to meet the same or higher wind, snow, and seismic standards as site-built homes. In some regions, transport requirements make modules even stronger than conventional builds.
Are prefab homes worth it?
For many buyers, prefab homes offer faster build times, predictable quality, and potential cost savings. They’re worth it when you budget for all expenses, choose a reputable builder, and ensure full compliance with local building codes.
Why do some people regret buying a modular home?
Regret often comes from choosing the wrong builder, underestimating total costs, or selecting a poor location. Avoid it by vetting builders, visiting model homes, and getting detailed, all-inclusive quotes.
How long does it take to build a prefab home in London, Ontario?
Most projects take 6–9 months from signed contract to move-in, depending on customization, permits, and site conditions.
Do I need a building permit for a prefab home in London?
Yes. All modular homes require a building permit and must comply with the Ontario Building Code and City of London zoning rules.
Can prefab homes be customized?
Yes. Modern modular homes offer a wide range of layouts, finishes, and energy-efficient features, allowing high personalization within your budget.
Are prefab homes a good investment?
They can be — especially in high-demand areas. A well-built modular home in a desirable location can appreciate like a traditional home and may offer rental income opportunities if designed for an Additional Residential Unit (ARU).