Mobile Homes Impacted by Mortgage Changes
Categories: cmhc , First Time Home Buyer Mortgage , Mortgage Companies , mortgage insurer , Mortgage Refinancing , Mortgage Renewal
New mortgage rules prohibit insured property from being refinanced and the fact that most lenders require mobile homes located in a mobile park to be insured, regardless of the amount of equity the owner has.
A number of brokers are already reporting cases where their clients have tried to refinance only to find it wasn't possible, or having to use private lenders with a higher interest rate and fees from the lender and the broker.
It has been noted that the restrictions aren't unique to mobiles homes, but can also include small condos under 550 square feet, homes on leased land, homes built using alternative building methods.
"To be very fair to a private lender, they realize that the ability for them to resell that home in the case of default is now very small and so their risk increases quite a lot as well." "They have a higher default on mobile homes and it cuts their losses that way, but that's still a very small number." (quote from Joel Olson, DLC Mortgage Expert in Kamloops)
"Article - Steve Huebel June 12, 2017 - Canadian Mortgage Trends"