Shawn Selanders | RECA-Licensed Mortgage Broker | Since 1999
Chattel Mortgages & Manufactured Home Financing in Alberta
Mobile homes, modular homes, and manufactured housing — what you can finance, how it works, and where to start.
Manufactured and mobile homes are a legitimate path to homeownership — especially in Southern Alberta.
But financing them is different from financing a standard house. The rules depend on whether you own the land, what type of home it is, and what foundation it sits on. Most banks won't touch certain configurations. The good news: there are lenders who will. You just need to know where to look.
Understanding the Different Types
These terms get used interchangeably, but lenders treat them very differently:
Modular Homes
Built in a factory in sections, transported to your lot, and assembled on a permanent foundation. Built to CSA A277 standards (same as site-built homes). Once assembled and affixed to the foundation, most lenders treat these exactly like a regular house. Easiest to finance.
RTM (Ready-to-Move) Homes
Built as a complete house in a factory, moved to your lot in one piece. Common in rural Alberta. Built to CSA A277 standards. When placed on a permanent foundation on land you own, financing is similar to a standard home. Good financing options available.
Manufactured / Mobile Homes
Built on a steel frame (chassis), single-wide or double-wide. Built to CSA Z240 standards. Can be moved. This is where financing gets complicated — it depends entirely on the land situation, foundation type, and age of the home. Financing varies widely.
Traditional Mortgage vs. Chattel Mortgage
The type of mortgage you get depends on one critical question: do you own the land?
| Traditional Mortgage | Chattel Mortgage | |
|---|---|---|
| Land ownership | You own the land | You lease the land (mobile home park, leased lot) |
| Collateral | Home + land | Home only (personal property) |
| Interest rates | Standard mortgage rates | Higher (1–3% above standard) |
| Amortization | Up to 25 or 30 years | Typically shorter (15–20 years) |
| Down payment | 5–20% (may qualify for CMHC insurance) | Typically 10–20% or more |
| Registration | Registered against land title (Land Titles Office) | Registered under Personal Property Security Act (PPSA) |
| Available from | Banks, credit unions, monoline lenders | Select banks, credit unions, some alternative lenders |
What Lenders Look At for Manufactured Home Financing
Whether you're going traditional mortgage or chattel, every lender will evaluate the same core factors:
1. Foundation type. This is the single biggest factor. A permanent foundation (poured concrete basement, concrete piers, drilled piles) gives you the most financing options. Blocked wood or temporary supports will severely limit which lenders will consider your file. The more permanent the foundation, the better your options.
2. Land ownership. Own the land = traditional mortgage with standard rates. Lease the land = chattel mortgage with higher rates and shorter terms. If you lease, the lease length matters — lenders usually want a lease term and renewal structure that clearly supports the requested financing period. A 10-year lease on a 25-year mortgage won't work.
3. Age and condition. Lenders look at remaining economic life. The general rule: maximum amortization equals remaining economic life minus 5 years. A manufactured home built in 2020 with a 40-year economic life has 35 years remaining, allowing a 30-year amortization. A 1985 mobile home with 40 years economic life has zero remaining — it's extremely hard to finance.
4. CSA certification. Factory-built homes need the proper code-compliance certification for their type. In practice, modular and RTM homes are typically tied to CSA A277 compliance, while manufactured and mobile homes are commonly associated with CSA Z240 MH standards. Lenders and municipalities will want proof of the applicable certification label — look for the compliance sticker on the electrical panel. Without it, financing is nearly impossible through traditional channels.
5. Skirting and services. The home must be properly skirted, connected to permanent utilities (water, sewer, electrical), and comply with local building codes. These aren't optional extras — they're financing requirements.
Common Scenarios in Southern Alberta
Modular or RTM on Owned Acreage
Best case scenario. You own the land, the home is on a permanent foundation, and it meets CSA A277 standards. Most lenders will treat this like any other home purchase. Standard rates, standard terms, CMHC insurance may be available if less than $1.5 million. The only complication: if the acreage exceeds 5 acres, some lenders apply non-urban sliding scale rules (see our high-value mortgage financing page).
Mobile Home in a Mobile Home Park (Leased Land)
This requires a chattel mortgage. Not all lenders offer chattel loans — credit unions are often more flexible here than big banks. Rates will be higher, terms shorter, and down payment requirements larger. The lease length is critical — lenders typically want the lease term and renewal structure to clearly support the requested financing period. Monthly pad rent (typically $500–$900 in Southern Alberta) adds to your debt ratios. Despite the higher rates, this remains one of the most affordable paths to ownership in the province.
Older Mobile Home on Owned Land
This depends on the age, condition, and remaining economic life. A well-maintained 15-year-old manufactured home on a permanent foundation with owned land may qualify for traditional financing. A 35-year-old single-wide on blocks will be extremely difficult — you may need an alternative or private lender, and rates will reflect the risk. An appraisal is essential to determine remaining economic life.
New Manufactured Home — Construction / Progress Advance
Buying a new manufactured home and placing it on your land? You may need a progress advance mortgage — funds are released in stages as the home is built, delivered, set up, and connected. This requires more cash upfront (often a significant portion of total project cost — exact requirements vary by lender) because you may need deposits for the factory order, site preparation, transportation, setup, and utility connections before the mortgage funds are fully released.
Who Finances Manufactured Homes in Alberta?
Not every lender does. Here's the general landscape:
Major banks — will typically finance modular homes on owned land with permanent foundations. Most will not finance mobile homes on leased land. A small number may consider select chattel scenarios, but product availability and underwriting appetite change frequently.
Credit unions — often the most flexible for manufactured housing, especially chattel mortgages. Alberta credit unions understand the local market and are more willing to work with manufactured homes in parks and on leased land.
Monoline lenders — some offer manufactured home financing for homes on owned land. Generally not available for chattel situations.
Alternative and private lenders — available for situations where traditional lenders won't go, but at significantly higher rates. Useful as bridge financing or for older homes.
This is where a broker earns their weight in gold. On a standard $450,000 house in Okotoks, any lender will work. On a manufactured home, especially one on leased land or with a non-standard foundation, I may need to contact 8–10 lenders before I find one that says yes. That's not a conversation you want to have at a bank — where the answer is simply "no" and there are no other options.
Tips for Financing a Manufactured Home
- Talk to a broker BEFORE you buy. Find out what's financeable before you fall in love with a home. Some configurations are simply not mortgageable through any traditional lender.
- Get the CSA sticker number. Located on the electrical panel. Without CSA certification, financing options drop dramatically.
- Know your foundation type. Ask the seller specifically what the home sits on. "Permanent foundation" means different things to different people — lenders need specifics.
- Get the lease agreement (if leased land). Length of lease, monthly pad rent, renewal terms, and any restrictions on home removal or financing. Bring all of this to your first conversation with me.
- Budget for the appraisal. Manufactured homes almost always require a full appraisal — not a drive-by or automated valuation. Cost: $400–$600. The appraiser will assess remaining economic life, which directly impacts your maximum amortization.
- Consider the home's age carefully. Homes built after 1992 have better financing options (improved building standards). Homes over 25 years old become progressively harder to finance. Over 35 years — very limited options.
Looking at a Manufactured Home? Call Me First.
I'll tell you within 10 minutes whether it's financeable, what kind of mortgage you'll need, and what it's going to cost. Better to know before you make an offer — not after.
Frequently Asked Questions
Q: What is a chattel mortgage?
A chattel mortgage is a loan secured against movable personal property — in this case, the home itself, not the land. It's used when you don't own the land the home sits on (mobile home park, leased lot). The home is registered under Alberta's Personal Property Security Act (PPSA) instead of the Land Titles Office. Think of it more like auto financing than a traditional mortgage.
Q: Can I get CMHC insurance on a manufactured home?
Yes, in some cases. CMHC and the private insurers (Sagen, Canada Guaranty) can insure certain manufactured or mobile homes, but eligibility depends on the home type, land ownership, foundation, condition, and the lender's and insurer's guidelines in force at the time. For qualifying insured purchases, minimum down payment is generally 5% on the first $500,000 and 10% on the portion above $500,000, up to less than $1.5 million. Your broker navigates the differences between insurers and lenders for you.
Q: Are interest rates higher on manufactured homes?
For modular homes on owned land with permanent foundations — usually not. They're treated like any other home. For chattel mortgages (mobile homes on leased land), yes — typically 1–3% higher than standard mortgage rates, with shorter amortization periods. The rate premium reflects the higher risk to the lender when they can't secure the loan against land.
Q: Can I refinance a chattel mortgage into a traditional mortgage?
Yes — if you later purchase the land your home sits on and permanently affix the home to a proper foundation. This converts the home from personal property to real property, allowing you to register a traditional mortgage against the land title. The result: lower rates, longer amortization, and lower payments.
Q: What if the mobile home park closes or the lease isn't renewed?
This is a real risk with leased-land homes. Alberta's Mobile Home Sites Tenancies Act gives mobile-home-site tenants important legal protections, including notice rules and dispute processes, but buyers should still review the lease carefully before purchasing. Before purchasing, review the lease agreement carefully — length of lease, renewal terms, and any restrictions. Lenders factor this risk into their decisions, which is partly why chattel rates are higher.
Q: I'm looking at an older mobile home. Can it be financed at all?
Maybe. The cutoff is roughly 25–30 years for most traditional lenders. Homes older than that may still be financeable through credit unions, alternative lenders, or private lenders — but expect higher rates, larger down payments, and shorter terms. The appraisal is the key document: if the appraiser assigns meaningful remaining economic life, there are options. If not, you may be looking at a cash purchase or private financing.
This page provides general information about manufactured home and chattel mortgage financing in Alberta. Specific lender requirements, rates, and policies vary and change frequently. CSA certification requirements, foundation standards, and lease requirements differ by lender and insurer. Contact Shawn Selanders for current information specific to your situation. OAC. E.&O.E. Last reviewed: March 2026.