The Only Bank That Will Finance a Floating Home: TD Bank
- Stefanie Carmichael
- Mar 21
- 2 min read
Owning a floating home is a dream for many—a perfect blend of waterfront living and urban convenience. However, if you’ve looked into financing options, you’ve likely hit a common roadblock: most banks simply won’t offer mortgages for floating homes. The one exception? TD Bank.
Why Don’t Most Banks Finance Floating Homes?
Unlike traditional houses, floating homes don’t sit on land. This unique characteristic makes them ineligible for conventional mortgages, which require real estate as collateral. Instead, floating homes are often classified similarly to boats, which pushes financing into the realm of personal or marine loans—often with higher interest rates and shorter repayment terms.
How TD Bank Stands Out
TD Bank is currently the only major Canadian financial institution that is willing to finance a floating home. This is a game-changer for buyers who want the stability and affordability of a mortgage rather than alternative financing options.
Here’s why TD’s floating home mortgage is a great option:
Competitive Rates: Unlike personal or marine loans, TD offers rates comparable to traditional home mortgages.
Longer Amortization Periods: Buyers can take advantage of longer repayment terms, reducing monthly payments.
More Accessibility: With TD’s financing, more people can enter the floating home market without needing to pay entirely in cash or take out high-interest loans.
What to Expect When Applying for a TD Floating Home Mortgage
If you’re considering applying for a floating home mortgage through TD, here’s what you need to know:
Location Matters – TD typically finances floating homes in designated communities with established infrastructure. .
Insurance is Required – Because floating homes have unique risks, TD requires CMHC mortgage loan insurance. This will make your monthly payments higher. And make sure to check if CMHC will insure in your desired marina. They currently won't insure mortgages for float homes in Toronto's Bluffer's Park Marina, for instance.
Inspection & Appraisal – The bank might require an appraisal to determine the value and condition of the floating home before approving the mortgage.
Eligibility Requirements – Just like a traditional mortgage, your credit score, income, and debt levels will be considered.
Why This Matters for the Future of Floating Homes
With TD leading the way in financing, it paves the path for more financial institutions to follow suit. Increased access to mortgages could mean more floating home developments, greater affordability, and a boost to the growing floating home market.
If you’ve been dreaming of owning a floating home but financing has held you back, TD might just have the solution you’ve been waiting for. Talk to a mortgage specialist to explore your options, and you could soon be waking up to the gentle sway of the water right outside your window.
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