Opting for a mobile home: what you need to know

Rising interest rates and the high price of single-family homes have made home ownership difficult, especially for young people. What if a mobile home was the solution to becoming a homeowner?

It wasn’t so long ago that when we talked about a mobile home park, we immediately imagined a community of retirees. Until recently, that was pretty much true. However, over the past few years, more and more young couples and even families are choosing to live in a mobile home park. The housing crisis has largely contributed to the fact that this type of housing — and lifestyle — has become an attractive choice.

Living in a mobile home is a bit of a compromise between an apartment and a house. This type of housing is built entirely in a factory and then transported to a site chosen by its owner. It is often equivalent to a two- or three-bedroom apartment on a single floor (with no basement), but without the inconvenience of upstairs or downstairs neighbours! Moreover, you have a yard to enjoy the outdoors!

At the beginning of July 2023, there were 280 mobile homes for sale on Centris.ca with prices ranging from $15,700 to $279,900. Median prices were hovering around $160,000. But these homes have recently seen their prices rise. As more people turn to this option, the market takes its course! However, mobile homes remain much more affordable than other types of properties.

Homeowner and landlord

Usually, the mobile home is installed on a rented lot in a park. The mobile homeowner benefits from amenities (sewer, snow removal, etc.) and a yard for a monthly rent of about $200 to $250. However, it is the project developer who remains the owner of the land. Since there is no law that protects mobile homes, the developer could decide to sell the land in order to change its use and evict the tenants with a six-month notice.

Special mortgage?

To buy a mobile home, you will need to take out a movable mortgage, a hybrid between one intended for a house (real estate) and a loan for the purchase of a car. In Quebec, both Desjardins and RBC support this option. However, you could also opt for a personal loan. Take the steps necessary to get an accurate picture of your options so that you can find a solution that meets your needs.

Good to know

• You must pay annual property and school taxes.
• The property transfer tax is calculated on the value of the mobile home only.
• Even if it is not mandatory, it is preferable to use the services of a notary for the transaction in order to avoid unpleasant surprises. The transaction will not be registered in the Quebec Land Register, but in the Register of Personal and Movable Real Rights (RDPRM).

Finally, since the purchase of a mobile home involves many important decisions, it is recommended that you be accompanied by a real estate broker. A broker will be able to help your search and clarify various points. Your broker works for you so that you can move as quickly as possible… into your first home!