Securing a mortgage on an unconventional home is tricky, but not impossible

This article has been updated from a previous version. 

Buying an unconventional home—like a tiny house, RV, green home, or off-the-grid cabin—can be an exciting way to live more affordably or sustainably. But when it comes to financing, things get a little more complicated. 

While traditional mortgages are designed for standard properties, securing a mortgage or loan for a non-traditional home often requires extra research, flexibility, and creativity. 

Lenders, especially large banks, are sometimes reluctant to issue mortgages on unconventional properties. The mortgage industry loves consistency and comparability, and a custom-built tiny home or off-the-grid log cabin may not tick either of those boxes. 

Still, with rising housing costs and growing interest in alternative living, more Canadians are exploring these options and there are ways to make it work.  

Whether you're dreaming of a home on wheels or a solar-powered cabin in the woods, here’s what you need to know about financing unconventional homes in Canada. 

How to finance an RV or mobile home in Canada 

Believe it or not, mortgages for recreational vehicles (RVs) exist — and for good reason. The purchase price of a new RV can easily reach six figures so, many prospective owners choose to finance their mobile homes rather than pay in full up front.  

Major lenders like Scotiabank, RBC, and TD offer specialized RV loans, as do some automotive lenders.  

According to Go RVing Canada, a coalition of RV manufacturers and dealers, the minimum down payment for an RV typically runs between 10% and 20%, but some companies offer “no money down” options to qualified applicants. The terms can be as flexible as home mortgages, too: Scotiabank, for instance, offers borrowers up to 20 years to pay off their loans.   

Of course, the true cost of an RV goes far beyond the mortgage paperwork. There are fuel and maintenance costs, upkeep, RV insurance, and inspection payments to consider.   

An RV may offer a more free and adventurous life than a home in the suburbs, but its occupants are still bound to their paperwork and cheque books.   

Read more: 10 questions to ask when getting a mortgage  

Can you get a mortgage for a tiny home?  

Tiny homes are often seen as a more affordable alternative to traditional single-family houses—but financing one isn’t always straightforward. 

Jessica Whelan, co-founder and director of Rewild Homes, a B.C.-based tiny home building company, says it’s tough to get a mortgage for a tiny home through a major Canadian bank.   

One key reason is the lack of comparables—similar properties that lenders use to assess value and risk. Without these, it's harder for banks to approve a mortgage, especially in the event of foreclosure. 

“The term ‘tiny home’ is still a colloquialism,” Whelan says. “There’s no set standardization for what constitutes a tiny home. You see all sorts of different definitions depending on who you talk to.”   

Still, there are ways to get financing for a tiny home. Whelan says many of Rewild Homes’ clients do it through a line of credit or personal loan.   

There are, however, a few lenders willing to offer financing on tiny homes, like TinyLoans.ca and Purpose-Built Financing.   

Island Savings, a B.C. credit union, also offers tiny home financing, but not for DIY projects. Borrowers need to order a tiny home from a manufacturer in order to qualify.   

Certifying your tiny home as an RV to apply for a mortgage  

One alternative route to financing a tiny home is to certify it as an RV and apply for an RV loan. This can open doors to specialized financing options, especially since traditional mortgages for tiny homes are often hard to secure. 

However, this approach comes with limitations—particularly for those planning a custom build. 

“It needs to be something that already exists,” Whelan explains, “as opposed to a custom tiny home that doesn’t exist yet.”   

Borrowers who want to go this route would need to pay around $10,000 for a third-party inspection agency, Whelan says, to inspect the custom tiny home at several different stages of its metamorphosis into an RV.  

The home must meet specific standards—like functioning taillights, water tanks, and turn signals—even if it’s never intended to hit the road. 

How to finance an energy-efficient home  

Green homes can run the spectrum from a conventional bungalow decked out in solar panels to a hyper-efficient sealed habitat built to the highest energy efficiency standards in Canada.   

Borrowers looking for their own custom build can look to a construction loan, sometimes known as a draw mortgage, for financing, but these often come with higher mortgage rates.  

To encourage eco-friendly housing, several major Canadian banks introduced green mortgage products in the early 2000s. These offer incentives like lower rates or cashback for homes that meet specific energy efficiency standards. For example: 

• Desjardins’ Sustainable Home Program offers up to $2,000 cashback for building or buying a certified green home (LEED, ENERGY STAR, or Novoclimat), and $500 cashback for eligible renovations 
• RBC’s Green Home Mortgage provides lower payments and potential savings on operating costs for energy-efficient homes 

Government programs also play a key role: 

• Canada Greener Homes Loan: Offers interest-free loans up to $40,000, repayable over 10 years, for energy-efficient retrofits like insulation, windows, and heat pumps. Applicants must complete a pre-retrofit evaluation 
• CMHC Eco Plus Program: Provides a 25% refund on mortgage loan insurance premiums for newly built homes that meet energy efficiency standards. As of July 2025, this applies only to homes with certified energy ratings (e.g., LEED, ENERGY STAR, or EnerGuide) 

Homes built to provincial efficiency standards like Quebec’s Novoclimat 2.0, Efficiency Manitoba’s New Homes Program, or Ontario’s Greenhouse qualify for a 15% refund.   

As of July 2025, the Canada Greener Homes Grant has received applications from 396,732 Canadian households who have completed retrofits and received grants. Ontario led with 162,611 grants issued, followed by Quebec with around 99,790, Alberta with 38,838, British Columbia with 34,805, and New Brunswick with 14,590. 

Related: Solar panels and their impact on home insurance  

How to get a mortgage for an off-the-grid log cabin 

Off-the-grid log cabins offer a rustic alternative to modern homes or cottages — but securing a mortgage for one can be challenging. 

Because these properties are harder to resell in the event of foreclosure, lenders tend to be cautious. That said, some are open to financing off-the-grid cabins, depending on the property’s features and location. 

In many cases, borrowers may qualify for a cottage mortgage, which typically falls into one of two categories: 

• Type A: A fully winterized property in good condition accessible by a year-round access road.   
• Type B: A structure that needs a full foundation, isn’t necessarily winterized, and doesn’t necessarily have year-round access.   

For Type A cabins, modern utilities aren’t necessarily required — the property could draw water from a lake or well — as long as it’s accessible and habitable throughout the year. 

On the other hand, Type B cabins include more remote rural properties, such as island cottages or those without consistent road access. An off-the-grid cabin could fall into either category, depending on its specifications.  

Ultimately, lenders assess these properties on a case-by-case basis, weighing factors like accessibility, condition, and year-round usability. 

Related: How to find a good home insurance policy if you live in a wildfire zone  

Financing an unconventional home means budgeting for more than just the mortgage 

As with all real estate decisions, financing an unconventional home comes down to more than the monthly interest payments.   

Insuring a tiny home or green home, managing energy rebates for an off-the-grid cabin run on solar panels, or just putting gas in the tank of an RV all add up.   

Finding mortgages for these less traditional style homes may not be easy, but it is possible if borrowers do their homework.  

Read next: Why aren’t there more green home insurance discounts?