RV financing in Canada

Buying an RV in Canada is a major purchase. Most mid-level RVs ring in at over $30,000 while some higher-end RVs cost upwards of $200,000. That leaves many Canadians looking for RV financing. The most recent Canadian Recreational Vehicle Association data found that over 200,000 RV loans were issued by RV retailers in 2017, with the average RV financing amount at approximately $60,000 ($45,000 USD).

Keep reading to find out how much different types of RVs cost and how you can get financing.

How do RV loans in Canada work?

RV loans let you borrow money to fund all or a portion of your RV. You simply need to apply with your bank, credit union or an online lender to find out if you qualify. You’ll then agree on an interest rate and loan duration, which will be used to determine your monthly payments. Once you’re approved for RV financing, you’ll have to repay it in monthly installments over several years.

The 6 types of RV financing in Canada

You can use several different forms of RV financing in Canada to purchase a new RV:

1. Unsecured personal loans

These loans can be used to purchase an RV or pay for the expenses associated with owning an RV (such as maintenance or storage).

• How it works. Compare RV financing from banks, credit unions and private lenders to find the best deal.
• How much can I borrow? You can usually borrow between $1,000 and $200,000 in RV financing with most lenders (or more if you have excellent credit or high-value assets).
• Benefits. There are no limitations on how you can spend the money, and you may get lower RV financing rates in Canada if you take the time to compare lenders.
• Drawbacks. You’ll need to apply for RV financing separately from your RV purchase and it can be difficult to qualify if you have bad credit.

2. Secured RV loans

The money you borrow can only be used to purchase an RV and the RV you buy will be used to secure your loan payments.

• How it works. Compare RV loans in Canada from banks, credit unions and online lenders to find the lowest interest rates.
• How much can I borrow? You can usually borrow between $1,000 and $200,000 with RV loans in Canada.
• Benefits. You can compare your options to find the best deal and you may get lower interest rates since your payments will be secured by your RV.
• Drawbacks. Your RV is used as collateral and can be repossessed if you fail to make your repayments on time.

Compare RV financing you can apply for now

3. RV dealership financing

Dealer financing lets you borrow money directly from the dealer where you buy your RV.

• How it works. Apply in person with your dealer and they will handle the details of your loan from start to finish.
• How much can I borrow? You may be able to borrow the full amount of your RV, but your payments will usually be secured by your RV.
• Benefits. It’s usually more convenient to apply for dealership financing and you may need to meet less strict eligibility requirements if your dealer is motivated to make a sale.
• Drawbacks. May come with higher interest rates.

4. Home equity loans

Home equity loans let you use your house as collateral to secure your RV loan payments.

• How it works. Apply for a home equity loan with your bank, credit union or private lender by using the equity in your home to secure your RV loan payments.
• How much can I borrow? You’ll usually be able to borrow up to the amount of equity in your home. This means you’ll need to get your home appraised to find out how much it’s currently worth versus how much you’ve paid off already.
• Benefits. These loans come with lower interest rates and are easier to qualify for as long as you have a decent credit score and equity in your home.
• Drawbacks. You have to put your house up as collateral to secure your loan, which means you risk losing your home if you default on your RV payments.

5. Standard mortgage

Financing an RV with a typical mortgage is less common and harder to qualify for, but it often comes with some of the lowest rates compared to other financing options. In order to potentially qualify for a mortgage to finance your RV, you’ll have to own or plan to buy the land the RV will be permanently parked on.

• How it works. You can apply for a standard mortgage with banks, credit unions or online lenders.
• How much can I borrow? You may be able to borrow the full amount to cover both your RV and the land where you’ll park it.
• Benefits. Standard mortgages tend to come with lower interest rates compared to other RV financing options, and you may be able to finance both the RV and the land it sits on.
• Drawbacks. It may be difficult to qualify for traditional mortgage to finance an RV.

Compare mortgage providers

6. Chattel mortgage

Chattel mortgages, also called personal property liens, is a mortgage specifically designed for movable personal property, like RVs. Your loan is secured with the personal property that you’ll live in. You may be eligible for a chattel mortgage if you plan to park your mobile home or RV on rented land.

• How it works. Apply for a chattel mortgage with a bank, credit union or private lender.
• How much can I borrow? You may be able to borrow up to the full cost of your RV.
• Benefits. These tend to have lower interest rates compared to personal loans and less strict eligibility requirements than some other types of RV financing.
• Drawbacks. Because these are unique mortgages, it might be harder to find this loan product with major banks and online lenders.

How much do RVs cost?

RVs can cost anywhere from $10,000 to $500,000 or more, depending on which type you buy. The following table outlines prices for common types of RVs:

Type of RV	What it looks like	Common features	Average cost
Class A		21-40 feet Sleeps up to 6-8 Large living area Slide-out panels Expensive on gas All amenities	$60,000 to $500,000+
Class B		16-22 feet Sleeps up to 4 Smaller living area Pop-up roof (on some) Cheaper on gas Limited amenities	$30,000 to $130,000
Class C		21-35 feet Sleeps up to 8 Large living area Over-cab sleeping or storage space Mid-range for gas Most amenities	$43,000 to $200,000+
Fifth wheel		21-40 feet Sleeps up to 8 Large living area Detachable Need truck or SUV to haul Most amenities	$18,000 to $160,000
Travel trailer		12-35 feet Sleeps up to 6-10 Smaller living area Detachable Need truck or SUV to haul Limited amenities	$8,000 to $95,000

Content in the table above was adapted from Retirement Living

RV finance calculator: How much does an RV loan cost in Canada?

You can use an RV loan calculator in Canada to find out how much you’ll have to pay for an RV loan. Access Finder’s RV financing calculator below:

• How to use this RV loan calculator

  1. Enter how much you want to borrow under Loan amount.
  2. Type in your loan term in years (not months) under the Loan terms field.
  3. Type in your loan’s interest rate if it doesn’t come with any fees under Interest rate. If your loan does come with fees, enter the annual percentage rate (APR), which includes interest and fees combined.
  4. Click Calculate.
  5. Review your results.

  Not only will our calculator show your monthly repayments, but also how much you’ll pay in interest over the life of your loan.

Current RV loan rates in Canada

It’s very difficult to determine current RV loan rates in Canada since your rates will be based on a number of factors. These include your credit score, income and whether you can secure your loan against assets.

As a very rough estimate, you can likely expect to pay between 5% and 30% interest on your RV loan. However, you may be asked to pay more if you’re applying for RV financing for people with bad credit in Canada.

RV financing for people with bad credit in Canada

RV financing for people with bad credit can be difficult to access and often comes with much higher RV financing rates in Canada. You can improve your chances of getting RV financing for people with bad credit in the following situations:

1. Get a cosigner. Your best bet to get RV financing for people with bad credit is to get a friend or family member with good credit to cosign your RV loan with you.
2. Secure your loan with an asset. You may be able to use an asset to secure your payments if the bank won’t give you unsecured RV financing with bad credit.
3. Build up your credit. The last option to get RV financing in Canada is to build up your credit score so that you meet the eligibility criteria for an RV loan without paying higher interest rates.

Can I get used RV financing in Canada?

You may be eligible for used RV financing in Canada if your RV is still relatively new. Most lenders will look at the market price of your vehicle along with its age, condition and mileage to determine if they want to lend to you.

This information helps them figure out how much they could claim if you had to sell your RV to make your repayments. The main goal for any lender offering used RV financing in Canada is to collect interest and to at least break even by reselling your RV if you can’t repay your loan.

How should I compare my RV financing options?

Look at the following features when comparing RV financing in Canada to find the best loan for your needs:

• Interest rates. Rates can be fixed or variable and tend to fall between 5% and 30% for RV loans in Canada. Look for the lender that offers the best loan terms and lowest interest rates.
• Loan amounts. The amount you need to borrow will affect which lender you choose. Banks tend to offer higher amounts while you may only qualify for $100,000 or less with private lenders and credit unions.
• Turnaround time. You should get a decision on your RV financing within a couple of hours or days with most lenders. As a rule of thumb, banks tend to take longer while private lenders and dealers will usually offer a faster turnaround.
• Loan terms. Loan terms can range from 1 to 20 years, depending on the size of your loan. You’ll have higher monthly payments with a short-term loan, but you’ll pay less interest over time. Long-term loans spread out your payments but charge more interest.
• Fees. Some private loan lenders charge fees that you’ll need to factor into your overall loan cost. These can include origination fees, late fees and early repayment fees. Pick a lender that offers the fewest fees with the lowest RV financing rate in Canada.

Eligibility criteria to qualify for an RV loan

You may need to meet the following criteria and have certain documents in order to qualify for RV financing in Canada:

• Be at least 18 years old or the age of majority in your province or territory
• Be a Canadian citizen or a permanent resident with a valid Canadian address
• Be employed and have a steady income
• Meet credit score and income requirements

Required documents

To apply for an RV loan in Canada, you may need to supply the following documents:

• Identity documents. Personal identification such as your passport or driver’s licence.
• Proof of income. Pay stubs, employment records, tax records and other documents.
• Debt-to-asset ratio. Lists of assets and debts to make sure you can qualify for funding.
• Credit score. Consent for your RV loan lender to run a credit check.

What should I do to make sure I get the best deal on my RV financing?

Tick the following boxes to make sure you get the best deal on your RV loan:

• Compare your RV financing options. Compare at least 3-4 banks and online lenders to make sure you get the best rates and terms for your RV loan.
• Negotiate dealership financing. Work with your dealer to get the lowest possible rates and fees on your RV loan.
• Avoid buying an RV you can’t afford. Assess your budget and make sure that you can actually afford to buy an RV and make your repayments.
• Build up your credit score. Make sure you know your credit score and you work to build it up before you apply for RV financing in Canada.
• Watch for hidden fees. Ask your lender about their fees and read your contract fully so that you know what you’re getting yourself into.

What other costs can I use my RV financing to pay for?

You may be able to spend part of your RV financing on other expenses, depending on the RV loan type you get. These can include the following:

Bottom line

There are many types of RV financing that may be a good fit for your needs. Make sure you find the right RV loan by comparing lenders to find the best interest rates and terms. Whether you’re looking to finance a tiny house or a mobile home, there is a financing option for your needs. Learn more about how you can qualify to borrow money for your RV and use our RV financing calculator to figure out how much your loan payments might be.

Compare RV financing options

Frequently asked questions about RV financing in Canada

• What type of RV should I get if I want a small loan amount?

  The least expensive types of RVs on the market are fifth wheels and travel trailers. These will usually run you under $40,000, but you'll need a truck or SUV to hitch them to. You may also want to consider purchasing a used RV to cut down on your costs since it's possible to apply for used RV financing in Canada.

• Can I get RV financing for people with bad credit?

  It depends. You may be able to qualify for RV financing for people with bad credit if you sign on to your loan with a cosigner or you secure your loan payments against an asset. Otherwise, you may need to build up your credit to qualify for RV financing.

• Can I take out a mortgage for an RV if I plan to live in it?

  You won't be able to qualify for a mortgage to buy an RV on its own, even if you live in it. Instead, you'll have to own or plan to buy the land where your RV will be permanently parked to potentially qualify for a RV mortgage. This is an unfortunate caveat, given that many RVs can cost just as much as houses without the land.

• Do I need to have insurance on my RV?

  Yes. If your RV is motorized, you'll have to make sure it's insured in most provinces. If you tow your RV, then it may be covered under your current policy but it helps to double-check for peace of mind. Learn more about RV insurance here.