Toronto Modular Home Financing FAQ

·         If the unit is placed on a full foundation, does standard underwriting apply and the mortgage would be eligible for discounted rates?

Yes, standard underwriting would apply and the client would be eligible for discounted rates, subject to qualifications from application

2. Are financing draws similar to site built construction loans? I imagine this will be somewhat similar to construction loan, but upon completion, the loan will be transferred to a conventional mortgage.

·        What is the advance schedule?

..... on completion of the foundation  Yes, approximately 15% - 20% advance for the cost of the land – subject to an appraisal

..... on confirmation of delivery of the unit  Yes, would require the Purchase Agreement for the unit to verify the price. This would proceed to 2^nd advance of approximately 75% - 85%.

..... on completion  Yes, the balance of funds (up to 95%) would be advanced, subject to at least one (1) further inspections and most times two (2) inspections.

Please note that the financing is not applicable to Builders/Contractors, only to the potential buyers. The financing is all insured from either CMHC/Genworth, regardless of loan-to-value.