Scotiabank Chattel Mortgage – Mobile/Modular/Mini Homes & Personal Property

Jurisdiction: Country: Canada | Province/State: Ontario

What is a Scotiabank Chattel Mortgage – Mobile/Modular/Mini Homes & Personal Property?

This form creates a security interest in personal property to secure a loan. In plain terms, you offer specific property as collateral. The lender holds rights in that property until you repay. The property here is usually a mobile, modular, or mini home. It can also include related personal property and accessories.

You use this form in Ontario when you finance or refinance a mobile home. The home is personal property if it is not permanently attached to land. It may sit in a mobile home park or on leased land. It may be in transport or under installation. The form can also cover add‑ons like decks, skirting, HVAC, and built‑ins. It often extends to replacements, accessories, and insurance proceeds.

Who uses this form?

Individuals buying a mobile or mini home often do. So do families finance a modular home kit before installation. Small business owners may use it for staff housing units. Investors who rent a mobile home on leased land may use it. Current owners who want to refinance and lower payments may also use it. Dealers and builders sometimes assist borrowers in completing it upon delivery.

You would need this form when you want secured financing. Secured means a lower credit risk for the lender. That can improve access to credit and pricing. The lender takes a charge over the home and specified property. If you default, the lender can take and sell the collateral. The form spells out that right and sets the rules.

Typical usage scenarios

You find a unit in a mobile home park. You arrange financing. The lender requires a chattel mortgage over the unit. You complete the form with details of the home, the location, and your obligations. Another case: you order a modular home for delivery to your land. Financing occurs before the unit is installed. Until it is permanently affixed, it is personal property. The chattel mortgage secures the loan during that period. A third case: you already own a mini home free of liens. You refinance to fund repairs. The unit and its accessories secure the new loan. A fourth case: your business buys several modular units for worker housing. You grant a chattel mortgage over each unit. The lender registers its interest against the serial numbers.

The form is standard for this type of asset in Ontario. It aligns with local rules for personal property security. It authorizes the bank to register its interest. It defines what you can and cannot do with the collateral. It sets your duty to ensure and maintain the home. It includes default and remedy terms. It also includes signature blocks for you and any guarantor.

When Would You Use a Scotiabank Chattel Mortgage – Mobile/Modular/Mini Homes & Personal Property?

You would use this form when buying a mobile home for a leased lot. Mobile home parks lease pads to tenants. You own the home, not the land. Your home remains personal property. The lender takes a security interest in the home. The form documents that interest. It also records the home’s serial number and description. The bank will likely ask for a landlord’s consent. That helps ensure access to the site if a default occurs.

You would use it when financing a modular home before permanent installation. A modular unit arrives in sections. It sits on blocks or a foundation during setup. It is personal property during that phase. The chattel mortgage applies at that time. If you later affix the home to land, the legal status can change. The lender may update its filings to protect its position. The form usually restricts moving or affixing without consent.

You would also use it for a mini home on rural land during staging. Delivery and setup can take time. You may bridge finance the unit before connection to services. The collateral is the unit and related equipment. The form secures the advance and the final draw.

You might use it to refinance an existing unit. If you have equity in the home, you can borrow against it. The form lists your home as collateral. The bank will search for prior liens. It will expect prior liens to be discharged at funding. It registers a new interest under your name and the unit’s serial number.

You may use it as a business owner. You buy modular units for temporary staff housing at a job site. You grant a chattel mortgage over each unit. You confirm the units’ locations and serial numbers. You agree not to move units without consent. You maintain insurance and list the lender as the loss payee. The form records those obligations and the bank’s rights.

You might use it as part of a private sale. You buy a used mobile home from an individual. The bank finances the purchase price. The form secures the bank until the loan is repaid. You provide proof that the seller’s lien is paid out on closing. The bank registers its own interest as part of the transaction.

You can also use it to fund major repairs. Roof replacement, skirting, decks, or HVAC upgrades are common. The form can extend to add‑ons and replacements. It will capture new equipment as accessions to the unit. The loan discloses how funds will be advanced to contractors or to you.

Legal Characteristics of the Scotiabank Chattel Mortgage – Mobile/Modular/Mini Homes & Personal Property

This form is a legally binding security agreement. It is binding because it records a valid grant of security. You receive value in the form of a loan. You have rights in the collateral you pledge. You sign the agreement. Together, those elements attach the security to the collateral.

Enforceability rests on clarity and proper registration. The collateral must be described in enough detail. For mobile and modular homes, the serial number is crucial. Make, model, and year also matter. The location of the unit should be clear. If the description is wrong, the lender’s rights may be at risk. You should confirm details from the manufacturer’s plate. You should match the serial number exactly.

The lender also perfects its interest by registration. In Ontario, there is a centralized personal property registry. The lender files a financing statement against your name. For serial‑numbered goods, it is also filed by serial number. Proper registration creates priority over most later claims. If you default, the lender can enforce against the collateral. Perfection can also occur by possession of some collateral. For a home, registration is the norm.

If the home becomes a fixture, the law treats it differently. A fixture is personal property affixed to land in a lasting way. To protect its position, the lender may file a notice against the land. That filing supports priority against claims tied to the land. The form usually restricts you from making the home a fixture without consent. It may require you to get the consent of any land mortgagee first.

Consumer protection rules also apply. If the home is for personal use, you have rights by default. You get notices before seizure or sale. You have a right to redeem by paying the balance plus allowed costs. You have a right to an accounting of the sale. The lender must act in a commercially reasonable way. It must try to get a reasonable price on sale. If there is a shortfall, you may still owe the balance. If there is a surplus, you get the excess.

The form typically includes standard borrower covenants. You keep the home in good repair. You do not move it without written consent. You keep proper insurance in force. You pay property taxes if you own the land. You pay lot rent if you lease a pad. You do not create any other liens on the home. You allow the lender to inspect the home on reasonable notice. You notify the lender of any loss or damage.

The form will state events of default. Missed payments are the most common. Other defaults include uninsured loss, moving the home, or misstatement. Insolvency or a bankruptcy filing is also a default. If default occurs, the lender can accelerate the debt. It can seize and sell the home. It can collect insurance proceeds. It can set off funds in your accounts. It can pursue any guarantor.

The agreement includes privacy and consent terms. You permit the lender to obtain and share credit information. You consent to registration and renewal. You consent to communicate with landlords and insurers when needed. You also agree to give further documents on request. Those documents help maintain perfection and priority.

Electronic signatures are often acceptable. Witnessing rules still apply. Some forms ask for a witness for each individual signer. For corporations, an authorized officer must sign. If one officer signs, a witness or corporate seal may be required. You should match the signature requirements on the signature page. You should initial each page and each schedule. Do not leave blanks.

Interest and cost disclosures appear in the loan terms. The annual rate must be clear. The compounding period must be stated. Fees should be itemized. Prepayment rights and any charge for prepayment should be disclosed. Default interest rules should also be clear. The form will link to the credit agreement if separate. Together, they create the full set of terms.

Third‑party rights can affect enforcement. If your home sits in a park, the landlord may have claims for rent. The lender may ask for a landlord’s consent or waiver. That document lets the lender enter and remove the unit on default. It may confirm priority for specific charges. If you own the land, any land mortgagee may require notice. The lender may also seek consent to permit a fixture filing. These steps help avoid disputes later.

Overall, enforceability depends on accurate details, proper filing, and compliance with the law. If you move the home, the lender should update the registration. If the home leaves Ontario, filings in the new place may be needed. The form usually obliges you to give advance notice before any move. Keep the lender informed to avoid gaps in protection.

How to Fill Out a Scotiabank Chattel Mortgage – Mobile/Modular/Mini Homes & Personal Property

1. Confirm you have the correct form.

Check that it covers “Mobile/Modular/Mini Homes & Personal Property.” Ensure the jurisdiction is Ontario. Use the most current version provided by the lender.

2. Gather identification and asset details.

You need your full legal name and address. You need the home’s make, model, year, and serial number. You need the physical location of the home. You need insurance details or a plan to bind coverage.

3. Complete the borrower information section.

Enter your full legal name as shown on your ID. Do not use initials only. Add your current mailing address. Add your date of birth if requested. Provide contact details. If a co‑borrower will sign, add their full details as well. For a business borrower, use the exact legal name. Include the jurisdiction and corporate number. Add the registered office and business address. Identify the signing officer and title.

4. Identify any guarantor.

If a guarantor supports the loan, add their full legal name and address. Confirm the guarantee type. It may be unlimited or limited to a set amount. The guarantor should review the guarantee terms. They will sign in the guarantor block.

5. Describe the collateral precisely.

This is critical. Use the manufacturer’s data plate to confirm the serial number. Record the make, model, year, length, width, and any model code. Include the CSA or other certification number if present. Note the colour and exterior type if requested. Describe accessories included in the sale. List decks, skirting, tie‑downs, steps, porches, HVAC, built‑ins, and appliances. The form often includes a standard clause for accessions and replacements. Ensure that the clause remains in place. It protects the lender if you add equipment later.

6. State the location of the home.

Provide the civic address and lot or site number. If in a park, include the park name and pad number. Include the municipality and postal code. If on owned land, provide the property address. If the unit will be moved before funding, note the current and future locations. The lender may require updates to registration after the move.

7. Disclose your interest in the land.

Indicate whether you own the land or lease the site. If you lease, provide the landlord’s name and contact details. Attach a copy of the lease if requested. The lender may require a landlord consent or access agreement if you own the land and plan to affix the unit, or disclose any land mortgage. The lender may coordinate a fixture filing or consent.

8. Confirm the loan terms and repayment.

Enter the principal amount. State the purpose, such as purchase or refinance. Record the annual interest rate. Record the compounding period. Select the payment frequency. Note the amortization and the loan term. Enter the first payment date. Confirm the payment method, such as pre‑authorized debit. Review prepayment rights and any charges. Review fees such as administration or registration charges.

9. Provide insurance details.

You must insure the home against typical perils. Replacement cost coverage is often required. Liability coverage may also be required in parks. You must show the lender as the first loss payee and mortgagee. Provide the insurer’s name and policy number. Provide the broker’s contact info. If the home is not yet installed, builder’s risk may be needed. Attach an insurance binder before funding.

10. Address existing liens or encumbrances.

If you are refinancing or buying used, list any current liens. Provide the creditor name and account number. State the payout amount. The lender will pay out and discharge that lien at closing. Do not sign if you cannot confirm the discharge plan.

11. Review representations and covenants.

You confirm you own the home or will own it at funding. You confirm there are no other liens except those disclosed. You agree to maintain the home and not move it without consent. You agree to keep taxes and rent current. You agree to provide updated information when asked. Read each clause and ensure it matches your situation.

12. Review default and remedies.

Understand what triggers a default. Missed payments, uninsured loss, or moving the home can trigger default. Understand the lender’s rights on default. The lender can seize and sell the home. You have the right to notice and redemption under the law. The form should reflect those rights. Ask questions before you sign.

13. Authorize registration.

The form will authorize the lender to register its interest. It may state the collateral class and serial number. It may authorize renewals and amendments. It may authorize fixture filings if needed later. Confirm that the authorization matches the collateral description.

14. Complete consents and disclosures.

You will usually sign a consent for credit inquiries. You will consent to share information with insurers and landlords as needed. You may need to make initial disclosures about fees and interest. Ensure you understand each disclosure.

15. Attach required schedules.

Many forms use a Schedule A for collateral description. They use a Schedule B for standard terms and conditions. They may use a Schedule C for any guarantee. They may add a schedule for landlord consent or installer details. Make sure each schedule is attached and legible. Initial each page of each schedule.

16. Signatures and witnessing. Sign in the borrower’s signature block. Date the signature. Print your name clearly. Have an adult witness sign where indicated. The witness should not be a party to the loan. For a corporation, an authorized officer must sign. Add title. If the form requires two officers or a seal, follow that rule. The guarantor must sign in the guarantor block with a witness.

17. Provide identification and banking details.

Provide ID copies for each signer if requested. Provide a void cheque or pre‑authorized debit form. Provide your proof of address if needed. Provide any income verification the lender requested during approval.

18. Deliver third‑party documents.

Provide the insurance binder naming the lender as the loss payee. Provide the landlord’s consent if the home is in a park. Provide installer confirmations if the home is mid‑setup. Provide a bill of sale for a purchase. Provide a lien discharge statement for a refinance.

19. Review and finalize.

Read the entire document again. Make sure names and serial numbers are exact. Check that there are no blanks. Draw a line through any unused fields and initial. Make sure every signature and initial is present.

20. Submit and keep copies.

Deliver the signed original to the lender as instructed. Keep a complete copy for your records. Keep copies of schedules, insurance, and consents. Store them together and accessible.

21. After signing, stay compliant.

Keep insurance active and paid. Do not move or modify the home without consent. Keep lot rent and taxes current. Notify the lender of any change of address or location. Report loss or damage promptly. Keep proof of repairs and maintenance.

22. Expect registration confirmation.

The lender will register its interest after signing. For serial‑numbered goods, accuracy is vital. Ask for confirmation if you want a copy. Keep the confirmation with your records.

23. If your plans change, notify the lender.

If you plan to affix the home to land, tell the lender first. If you plan to sell the home, get a payout statement. If you plan to move out of your home, give advance notice. These steps prevent issues and protect both parties.

Strong attention to detail will save you time. Accurate serial numbers and locations reduce risk. Clear insurance coverage avoids funding delays. Complete consents prevent access issues at parks. If something in the form does not fit your facts, raise it. The lender can tailor terms within its policy. Your goal is a valid, enforceable agreement that reflects your situation.

Legal Terms You Might Encounter

A chattel mortgage is a loan secured by movable property, not land. Here, the collateral is a mobile, modular, or mini home, and related personal property listed in the form.

Collateral means the property you pledge to secure the loan. This form includes the home itself and any listed components or accessories.

A security interest is the lender’s legal right in the collateral if you default. This form creates that interest when you sign the loan funds.

Perfection is the legal step that makes the security interest effective against others. It usually involves a registration. The form supports registration by describing the collateral clearly.

Serial‑numbered goods are items identified by a unique number. Many factory‑built homes or chassis have serial numbers. Enter them exactly as shown on the manufacturer’s label.

Fixtures are items that become part of the land when attached. If the home is installed on land, parts of it may be treated as fixtures. The form may include language to protect the lender’s interest if that happens.

Accessions are goods installed in or on the home, like a furnace or built‑in appliances. If listed in the collateral description, these are covered by the security interest.

Default is a breach of the loan terms, such as missed payments or uninsured collateral. The default events are set out in the loan agreement referenced by this form.

Remedies are what the lender can do after default, like repossession or sale. This form and the loan agreement outline those rights.

A guarantor is someone who promises to pay if you do not. If a guarantor is involved, they may sign this form or a separate guarantee.

Assignment means the lender can transfer its rights to another party. The form often permits assignment without your consent.

FAQs

Do you need to list a serial number for the home?

Yes. Use the exact serial or manufacturer number on the data plate or frame. If there are multiple serial numbers for sections or chassis, list each one. A wrong digit can delay registration and funding.

Do you need insurance before funding?

Yes. You usually need comprehensive insurance naming the lender as the loss payee. Provide proof with the correct legal names and collateral description. Keep coverage active until the loan is fully repaid.

Do you need to own the land where the home sits?

No. Many homes sit on leased pads or rented land. You must disclose the location and provide your park lease or site agreement. If the home is installed on land you own, you may need extra filings or consents.

Do co‑owners need to sign?

Yes. Every owner of the collateral must sign. If the title shows two names, both sign the form and the loan. If a spouse or partner has rights in the collateral, get guidance on whether they must consent.

Do you need to disclose existing liens?

Yes. List all prior loans, liens, or dealer financing on the home or components. Provide payout statements if refinancing. Omissions can lead to declined funding or delays in registration.

Do you complete the registration yourself?

Often, the lender or dealer files the security registration. You still must provide accurate collateral details and sign where required. Ask who will register, and request confirmation after filing.

Do you need an appraisal or inspection?

It depends on the loan amount, age of the home, and location. Be ready to provide photos, a bill of sale, CSA approvals, and site details. Inspections verify condition and serial numbers.

Do you need to tell the park owner or municipality?

Usually, yes. Many parks require notice and consent to a secured loan on a home. Municipal permits may be needed if the home is moved or installed. Provide any required letters with your package.

Checklist: Before, During, and After the Chattel Mortgage

Before signing

• Confirm the exact legal names of all borrowers and owners.
• Gather government‑issued ID for each signer.
• Find the manufacturer’s serial number(s) and data plate photos.
• Collect the bill of sale, purchase agreement, or ownership documents.
• Obtain a current park lease or site agreement, if applicable.
• Get proof of insurance with the lender listed as loss payee.
• Obtain any required consents from a park, landlord, or landowner.
• Gather prior lien details and payout statements, if refinancing.
• Compile photos and condition notes for the home and key components.
• Confirm the home’s location and whether it will be moved.
• Verify the loan amount, interest rate, term, and payment schedule.
• Ask who will file the security registration and how you’ll confirm it.

During signing

• Check each signer’s name matches ID and ownership documents.
• Verify the collateral description matches the home and components.
• Confirm all serial numbers, model numbers, and section identifiers.
• Review default events, remedies, and your obligations to ensure.
• Confirm fees, prepayment terms, and any penalties.
• Check that the address for notices and statements is correct.
• Ensure dates are accurate and consistent across all pages.
• Confirm witness requirements and signing authority, if a company is an owner.
• Initial any changes and each page if requested.
• Keep a complete copy of everything you sign.

After signing

• Deliver the signed form and required documents as instructed.
• Provide final insurance confirmation with the correct loss payee wording.
• Confirm the security registration was filed and the details are correct.
• Set up payments and confirm the first due date.
• Add reminders for insurance renewal and payment dates.
• Store copies of the signed form, registration confirmation, and proof of insurance.
• Notify the lender if you change address, move the home, or alter the collateral.
• Track registration expiry dates, if applicable, for future renewals.
• Keep records of maintenance, upgrades, and any installed accessions.

Common Mistakes to Avoid

Don’t forget to enter the exact serial number. A single wrong digit can block registration and funding, and may require re‑signing.

Don’t omit a co‑owner. Missing signatures can void the security, delay closing, and trigger a full re‑papering of the file.

Don’t hide prior liens. Undisclosed security interests can cause a refusal to fund or force you to pay unexpected payouts.

Don’t assume a parked home is “real estate.” If the home becomes attached to land, extra steps may be needed. Skipping them risks losing priority.

Don’t leave insurance until the last minute. Lack of proper coverage with the lender noted can prevent disbursement and breach the loan.

What to Do After Filling Out the Form

• Submit the signed form and all supporting documents. Include IDs, ownership proofs, serial number evidence, and insurance details.
• Confirm funding conditions. Clear any outstanding items like inspections, appraisals, consents, or payouts.
• Verify registration of the security interest. Ask for a confirmation showing the correct debtor names and serial numbers. Fix any errors quickly.
• Share required notices. If your park or landlord needs notice or consent, send a copy of the executed form or confirmation letter.
• Set up payments. Enroll in pre‑authorized payments or your chosen method. Note the first payment date and frequency.
• Organize your records. Save a digital and paper set of the form, loan agreement, insurance, and registration confirmation.
• Maintain insurance. Keep coverage active for the full term, with the lender listed properly. Update coverage after upgrades or relocations.
• Manage changes. If you move the home, change owners, add components, or refinance, request written approval and complete any amendments.
• Track renewals. Some registrations expire. Note renewal dates so your security record stays current while the loan is outstanding.
• Plan for discharge. When you pay in full, request a release of the security interest. Keep the discharge confirmation with your records.