Modular, RTM, manufactured, mobile, and prefab: what is the difference?
The difference comes down to the building code each one is built to, and that single distinction drives everything else: how the home is financed, how it is appraised, what it can be placed on, and how it holds value over time. A modular home is built to the same building code as a site-built house and set on a permanent foundation, an RTM is a conventionally framed house moved to your land in one piece, a manufactured home is built to a separate federal standard on a permanent steel chassis, and mobile home is a legacy term for units built before modern manufactured-housing standards. Prefab is not a fifth category so much as the umbrella term for any home built off-site, modular included.
| Type | Built to which code | Foundation | Financing treatment | Transport | Size limits |
|---|---|---|---|---|---|
| Modular | National Building Code, certified to CSA A277 | Permanent foundation, prepared ahead of delivery | Real property. Appraised, mortgaged, insured like any house | Sections engineered for transport, joined on site | Capped only by how many sections you join |
| RTM | Conventionally framed, inspected through builder and local authority | Permanent foundation, prepared ahead of delivery | Real property, financed and insured like a site-built house | Moved in one piece, usually near the yard that built it | Capped by what fits down a highway in one piece |
| Manufactured | CSA Z240 MH series in Canada, historically the U.S. HUD code | Built on a permanent steel chassis | Often chattel, unless affixed and the chassis title is retired | Built entirely in a factory, arrives essentially complete | Varies |
| Mobile | Pre-standard. Built before modern manufactured-housing standards | Varies. Designed to be moved | Varies | Designed to be moved | Varies |
| Prefab | Varies by type. Herauf prefab is CSA A277 and the 2015 NBC | Same permanent foundations as a modular home | Varies by type. Herauf builds modular prefab | Prefabricated off-site, delivered complete | Varies |
Cells marked "Varies" are left open rather than generalised: the answer depends on the individual unit and its manufacturer.
What is a modular home?
A modular home is built to the same building code as a site-built house, in Canada the National Building Code and provincial amendments. The only real difference is where it is built: modules are assembled in a controlled facility, then transported and set on a permanent foundation.
Every Herauf unit is built to CSA A277, the standard that governs factory-built construction, and engineered to the 2015 National Building Code for climate zones 6 through 8. Because it meets the same code as conventional construction once set, it is treated as real property and appreciates the same way.
What is an RTM (ready-to-move) home?
An RTM is typically a conventionally framed house, built above grade in a builder's yard, then lifted onto a truck and moved to a permanent foundation, usually within a regional radius of the yard. Because it moves in one piece, the whole house has to fit down a highway at once.
RTMs are a well-established option in Saskatchewan and Manitoba, and good yards build good houses. Like a modular home, an RTM ends up as real property on a permanent foundation.
What is a manufactured home?
A manufactured home is built to a separate federal standard, historically the U.S. HUD code and in Canada the CSA Z240 MH series, rather than the National Building Code that governs houses. It is built entirely in a factory on a permanent steel chassis and arrives essentially complete.
Manufactured homes can be an affordable path to ownership, but lenders often treat them as chattel, meaning personal property, rather than real estate unless the home is permanently affixed and the chassis title is retired. Appraisal and resale also behave differently than for a code-built house.
What is a mobile home?
Mobile home is a legacy term for units built before modern manufactured-housing standards were adopted. They were designed to be moved and were not built to today's structural, energy, or fire requirements.
The word still gets attached to manufactured homes in casual conversation, but a true mobile home and a code-built modular house have almost nothing in common.
What is a prefab home?
Prefab is the umbrella term for any home built off-site, so modular, RTM, and manufactured homes all sit under it. Herauf builds modular prefab homes: complete sections manufactured in our facility, then delivered and set as a finished home.
Same permanent foundations, same code, up to 50% faster than site-built. Every home is built to CSA A277 and the 2015 National Building Code for climate zones 6 through 8, with a continuously insulated, airtight envelope engineered for prairie cold.
Common questions
What is the difference between prefab and modular?
Prefab is the umbrella term for any home built off-site. Herauf builds modular prefab homes: complete sections manufactured in our facility, then delivered and set as a finished home. Same permanent foundations, same code, up to 50% faster than site-built.
What is the difference between a modular home and an RTM?
An RTM, or ready-to-move home, is typically a conventionally framed house built above grade in a builder's yard, then lifted onto a truck and moved to a permanent foundation in one piece. A modular home is built as one or more sections in an indoor facility to CSA A277 and the 2015 National Building Code, then transported individually and joined on the foundation.
What is the difference between a modular home and a manufactured home?
The difference comes down to the building code each one is built to. A modular home is built to the same building code as a site-built house, in Canada the National Building Code and provincial amendments, while a manufactured home is built to a separate federal standard, historically the U.S. HUD code and in Canada the CSA Z240 MH series.
Which of these is treated as real property?
Modular and RTM homes both sit on a permanent foundation and are treated as real property, financed and insured like a site-built house. Manufactured homes are often treated as chattel, meaning personal property, unless the home is permanently affixed and the chassis title is retired, which affects mortgage rates and terms.
Which type can be delivered to a remote site?
A single-piece house is a wide, tall, heavy load, and every kilometre adds cost and constraint, so RTMs usually stay relatively close to the yard that built them. Modular sections are engineered for transport from the start, which is how Herauf Modular has delivered over winter ice roads to St. Theresa Point First Nation and onto a roadless bush site for NAIT's forestry campus.
Is a modular home limited in size the way an RTM is?
An RTM is capped by what can move down a road in one piece. A modular home is capped only by how many sections you join, which is why commercial projects can stack sections into dormitories, classrooms, and multi-family buildings.
Not sure which fits your land?
The category names matter less than the code behind them, and the right answer depends on your land, your floor plan, and your access. Tell us about your site and we will give you a straight answer on fit, including when an RTM might genuinely be the better call for you.
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