Buying a mobile home might seem affordable, but there are key factors to understand before you move forward. If you’re shopping for a home in the $100,000s range, it’s worth looking at the long-term pros and cons, especially the way lenders view mobile homes in Alberta.
Watch my video, or read on for more details!
How Mobile Homes Are Treated by Lenders
When you buy a mobile home in a trailer park, lenders often treat it more like a vehicle than a house. That’s because mobile homes, especially on leased land, tend to depreciate over time. Unlike a traditional home on owned land, a mobile home generally doesn’t increase in value. That makes them harder to finance and trickier to resell in the future.
The Hidden Costs of a Mobile Home
In addition to a mortgage, you’ll also be paying lot fees for the trailer park. Once you factor those in along with your mortgage payments, you may find the monthly cost is similar to a condo or townhouse. But unlike those options, your mobile home isn’t likely to appreciate in value in the future.
Is There a Better Option Than a Mobile Home?
If you can’t yet afford a home on owned land, consider a condo or townhouse instead of a mobile home. These properties tend to hold their value better and are more appealing to lenders. They also come with the added benefit of shared maintenance, which can be a big plus for first-time buyers. Feel free to read my blog on “What You Need to Know Before Buying a Condo” for more information!
Final Thoughts
If your price point has you looking at mobile homes, you still have options. Waiting and saving more for a down payment, or buying a condo instead, might offer better long-term value and fewer financing challenges.
Whether you are preparing to buy your first home or thinking about making a move, if you’re looking to get pre-approved for a mortgage to buy a condo or other property in Edmonton, fill out my online application. I’m here to help you every step of the way.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.
