{"id":22119,"date":"2023-07-20T08:00:00","date_gmt":"2023-07-20T12:00:00","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=22119"},"modified":"2023-07-20T13:34:07","modified_gmt":"2023-07-20T17:34:07","slug":"mobile-home-good-investment","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/mobile-home-good-investment","title":{"rendered":"Is a Mobile Home a Good Investment?"},"content":{"rendered":"\n\n\n

Many Canadians are looking toward affordable home options, and one of these options is mobile homes. But what exactly is a mobile home? How do you finance one? And is it a good investment? Let’s get to the bottom of whether this property type is the right choice for you.<\/p>\n\n\n\n

What is a Mobile Home?<\/strong><\/h2>\n\n\n\n

A mobile or manufactured home is a single home or dwelling built and designed to be transported to a new location on the back of a flatbed truck. They are created with factory settings and often follow relatively simple designs.\u00a0<\/p>\n\n\n\n

This type of home can be very tasteful, with plenty of upgrade options available as you would have in a traditionally built home. <\/p>\n\n\n\n

One pro of this property type is affordability. A second? They are backed by Canada Mortgage and Housing Corporation (CMHC) home insurance.\u00a0CMHC insurance<\/a>\u00a0protects lenders from a homeowner potentially defaulting on their mortgage loans.\u00a0<\/p>\n\n\n\n

Related content<\/p>

What Does Home Insurance Cover?<\/a><\/p><\/section>\n\n\n\n

Remember that a mobile home is not the same as a modular home. While also built in a factory setting, a\u00a0modular home<\/a>\u00a0is a permanent home designed to stay in one place and not move like a mobile home.<\/p>\n\n\n\n

What Do Mobile Homes Cost?<\/strong><\/h2>\n\n\n\n
\"Doing<\/figure>\n\n\n\n

These smaller homes are significantly less expensive than traditionally built homes. Part of this is due to the construction process. Since you build this type of home using factory settings, the materials can often cost less as suppliers typically purchase them in bulk. That said, pricing very much depends on the design. After all, you can still get granite countertops and extensive add-ons like a porch which will increase the cost.\u00a0<\/p>\n\n\n\n

Additionally, since these homes are free to move, remember that the price only includes the building itself \u2014 not the property. This means you also need to rent or purchase the property or land you choose at the cost of building your home. This price can also vary drastically depending on the location and the amenities (waste, recycling, snow removal, sewer utilities etc.) if you rent.<\/p>\n\n\n\n

The\u00a0median sale price of a mobile home<\/a>\u00a0in 2021 varies based on the city you live. For example, this type of property in Vancouver could cost you $327,000, whereas it is closer to $160,000 in Ottawa. While these prices have nearly doubled from 2017, they are still significantly less expensive than a traditionally built home.\u00a0<\/p>\n\n\n\n

How to Secure a Mortgage for a Mobile Home<\/strong><\/h2>\n\n\n\n

As we now know, mobile homes are recognized by CMHC. However, getting a traditional mortgage for one is not necessarily easy. The easiest way to qualify for a conventional mortgage is if you also purchase the land on which the home will stay. <\/p>\n\n\n\n

Suppose you are renting rather than purchasing the property. In that case, you can look into a chattel mortgage that can remain active even if you move your home to another location since it ties the loan to personal property. Remember, these types of mortgages often come with higher interest rates than traditional ones. <\/p>\n\n\n\n

Related content<\/p>

5 Steps to Get Approved for a Mortgage in Canada<\/a><\/p><\/section>\n\n\n\n

You can also look for an unsecured personal loan which doesn\u2019t require you to use the home as collateral. However, many lenders limit the borrowing amount to a maximum of $50,000, which likely isn\u2019t enough to finance your purchase in full.<\/p>\n\n\n\n

A final option is to finance your mobile home with the manufacturer. Most manufacturers offer in-house financing, and the process is much easier, while the best rates may not be available.\u00a0<\/p>\n\n\n\n

How Much Does it Cost to Move a Mobile Home?<\/strong><\/h2>\n\n\n\n
\"Moving<\/figure>\n\n\n\n

One of the big questions about mobile homes is how much does it cost to move them? There are several factors built into this, including:<\/p>\n\n\n\n