Financing For RV And Mobile Home Purchases

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Dreaming of hitting the open road in an RV or mobile home? Or, maybe you’re looking for an easier, cheaper way to set up a vacation home without building or buying a cottage. Either way, purchasing an RV, mobile home, or travel trailer is a popular option for many Canadians.

Once you have your eye set on the right RV, it’s time to think about financing. Read on to find out everything you need to know about finding the right financing for your RV or mobile home purchase.

Key Points You Should Know About RV Financing

You can find RV financing at banks, credit unions, private lenders, and alternative lenders.
Any type of RV can be financed, including motorhomes, fifth-wheelers, and pop-up campers.
You can keep your RV financing costs low by purchasing a used RV, offering a bigger down payment, and securing a lower rate.
Before applying for RV financing, consider the interest rate, loan term, and down payment amount.

Can You Finance An RV?

Yes, you can finance the purchase of an RV. That said, there are some key differences between financing a new RV versus a used one.

	New RVs	Used RVs
Purchase Price	Typically much higher than used RVs	Often lower prices for used RVs. Most banks will finance RVs up to 10 years old.
Loan Terms	Longer term lengths	Shorter term lengths
Interest Rates	Often lower rates than used RVs due to their higher value and lower risk for lenders	Often higher rates than new RVs due to the lower value & increased perceived risk for lenders
Warranty Coverage	Comes with a manufacturer’s warranty	Limited or no warranty, depending on the age of the RV
Depreciation	Quick depreciation	Less depreciation
Down Payment	Bigger down payments are often required due to higher purchase price	Lower down payments are often required due to higher purchase price
Insurance	Higher premiums	Lower premiums

RV Financing Features

Before you apply for RV financing, consider the following common factors involved:

Loan Amount

RVs tend to be much more expensive than regular road vehicles, usually ranging from $25,000 to $300,000 or more. As such, you’ll likely require a large loan amount.

Financing Rates

RV financing rates in Canada vary heavily depending on the RV, the lender, the loan term, and your finances and credit score. In terms of the RV itself, used RV financing rates may be higher than new RV rates because of its lower value and increased perceived risk for lenders.

Loan Terms

Loan terms for RV financing can range from 5 to 20 years or more, depending on the type of RV you’re buying and the lender. RV loans are typically longer than regular auto loans because RVs are usually more expensive. Generally speaking, the higher the loan amount, the longer the loan term.

Down Payment

RV and mobile home loans typically require a minimum down payment of about 10% of the purchase price. Some lenders may require even more. Depending on the purchase price of the RV or mobile home that you plan to buy, this can translate into a hefty amount.

As such, it’s important to start saving as early as possible so you have enough to cover your down upon loan approval. And the bigger the down payment, the lower your monthly loan payments will be.

Loan Types For RVs And Mobile Homes

Below are the loan options you can choose from to help finance your purchase. Some of them may be more suitable for you than others. Be sure to understand them clearly before making your final choice.

In-House RV Financing From A Dealer – Like with most vehicles, you may find a variety of financing packages through an RV dealership. So, rather than applying with a bank or other traditional lender you would send installments directly to the dealer until your repayment plan is finished, with the vehicle’s title serving as collateral the whole time.
Auto Loans – If you’d prefer to avoid in-house financing, you can also apply for an auto loan through a conventional lender, then use it to finance almost any new or used RV. Here, the vehicle’s title may again be used as collateral until your repayment plan is complete.
Conventional Mortgages – If the mobile home you buy is situated on land that you buy and own, a traditional mortgage may be an option for you. Traditional mortgages are ideal because loan amounts are usually higher and interest rates are lower than other mobile home financing options.
Chattel Mortgages – A chattel mortgage is a type of loan used to cover the purchase of personal property that can be moved, such as a mobile home. The chattel, or personal property, serves as collateral for the loan. This differs from a traditional mortgage in which an immovable item, such as a house, secures the loan. Even if you move the mobile home to a different location at some point, the chattel mortgage will still stand.

How Do I Find RV Dealerships Near Me?

To find an RV dealership near you, consider the following tactics:

Google Search – A simple Google search can help you find an RV dealerships in your area that offer RV financing.
Online Dealership Locator Tools – Many RV manufacturers and networks have online tools on their websites that can help you find authorized dealers near you. These tools let you search by location, RV brand, or model.
Online Marketplaces – Online RV marketplaces often list dealerships that you can find near you, such as Autotrader.
Bank RV Dealership Finder Tool – Some banks can help you find a local RV dealership on their website. Simply enter your province and city, and the tool will populate a list of available RV dealers.

Find RV Financing In Ontario

RV Dealerships With RBC Financing:
- Canadream Inc., 576 Evans Avenue, Toronto, ON
- Glenn Burney Marina Ltd., 25 Glenn Burney Road, Parry Sound, ON
RV Dealerships With TD Financing:
- VOS Motors – RV, 8161 Keele St – 3, Concord, ON
- McKenzie RV Trailers – RV, 2 Cardico Drive, Stouffville, ON

Can You Buy An RV At An Auction In Ontario?
Yes, there are RV auctions in Ontario that you may participate in to buy your next RV. Here are a few: Bryan’s FarmIAA Copart Canada

Find RV Financing In Alberta

RV Dealerships With RBC Financing:
- Canadream Inc., 2510 27 ST NE, Calgary, AB
- Carefree RV, 4510 51 Ave. NW, Edmonton, AB
RV Dealerships With TD Financing:
- Trailertown, 5303 Blackfoot Trail S.E., Calgary, AB
- GO RV, 13072 Yellowhead Trail, Edmonton, AB

Find RV Financing In BC

RV Dealerships With RBC Financing:
- Repo.com, 6139 Trapp Ave, Burnaby, BC
- Traveland RV, 20529 Langley Bypass, Langley, BC
RV Dealerships With TD Financing:
- Canadream Campers, 7119 River Rd., Delta, BC
- Meridian R.V. Mfg. Ltd., 1690 Coast Meridian Rd, Port Coquitlam, BC

How To Apply For RV Financing In Canada

To apply for RV financing, follow these steps:

Step 1: Review Your Finances

Before you start searching for an RV or mobile home, consider how much you can afford to spend and how large of a loan you can qualify for. Crunch the numbers to determine how much money you have left over every month after paying all your current bills. This will give you a rough idea of how much you can dedicate to an additional loan payment.

Also, find out what your credit score is, as this can affect your eligibility for a loan, your loan limit, and your interest rate.

Step 2: Research Lenders

You can apply for RV financing in Canada through the RV dealership or directly with a bank or lender that offers this type of financing. When conducting your research, be sure to find out about the following:

Preapproval offer: Getting pre-approved with multiple RV lenders can help you compare and find the lowest rates, which can help you save on interest payments over the loan term.
Down payment requirements: Depending on your credit score and the purchase price of the RV, the amount you’ll need for a down payment may vary.
Credit score requirements: Traditional banks may require good credit, while private lenders may have more lax credit criteria.
Loan terms: As mentioned, loan term lengths may vary based on whether buying new or used. You may get a longer term by purchasing a new RV, while used RV financing tends to come with shorter loan terms.

Step 3: Gather Required Documents

Different lenders may have slightly different lending requirements, but generally speaking, you may be asked for the following:

Proof Of Income: Recent pay stubs and tax returns are typical documents that provide proof of income.
Proof Of Employment: A letter from your employer will show the lender that you’re steadily employed and how long you’ve been with the company.
Photo Identification: You will likely be asked to show a valid government-issued ID, such as a driver’s license or passport.
Proof Of Insurance: Lenders will likely require proof of an insurance policy on the RV before they approve financing.
Credit Information: Your lender may want to conduct a credit check to verify your creditworthiness. In this case, you’ll need to provide consent to allow the lender to pull your credit report.
RV Details: The lender may want to know details about the RV you’re financing, such as the make, model, age, and price.

Step 4: Complete The Application

Fill out and submit the loan application provided to you by the RV dealership or lender. Make sure all the required documents accompany the application.

Step 5: Review The Loan Terms

Carefully read the loan terms, including interest rates, loan amount, loan term, and monthly payments. If everything looks good, sign the loan agreement, then obtain the funds to complete your purchase.

Do I Need A Special RV License To Get RV Financing?
No, you don’t need a special RV license to obtain RV financing in Canada. However, you’ll need to provide a valid driver’s license.

Can You Finance An RV With Bad Credit?

Yes, you can finance an RV with bad credit, but it may be more difficult and more expensive. Here are some points to consider:

Interest Rates: Your rate may be higher if you have bad credit since the lender will be assuming more risk. This will make your loan more expensive.
Down Payment: Your lender may require a larger down payment to reduce their risk if your credit score is low.
Limited Loan Options: You won’t have as many lenders to choose from to help you finance an RV purchase with bad credit. Big banks may not work with bad credit borrowers, so your only option may be to apply with private or alternative lenders that specialize in bad credit RV loans.
Less Favourable Terms: You may not have as many choices when it comes to loan terms and repayment options.
Consider A Co-Signer: If you have bad credit, you may have a better chance of getting approved for RV financing at an affordable rate if you add a co-signer to the agreement.

Can I Get An RV If I’ve Declared Bankruptcy?

If you’re currently in bankruptcy, you will have much greater difficulty obtaining RV financing. However, some lenders specialize in helping borrowers who are going through bankruptcy. That said, your options will be very limited, and the loan may be more expensive.

You may have better luck getting RV financing if you’ve been discharged from bankruptcy. That said, it may still be somewhat challenging to get RV financing because your credit score will be damaged following bankruptcy. You’ll need some time to improve your credit score after you’ve been discharged to get approved for RV financing from traditional lenders.

Can I Get An RV If I’ve Filed A Consumer Proposal?

As is the case with bankruptcy, you may have some challenges getting approved for a loan to finance an RV purchase if you’re in the middle of a consumer proposal. But again, you may find a lender that specializes in financing for borrowers who are currently dealing with a consumer proposal, though this is rare.

You may be better off waiting until your consumer proposal is complete to apply for RV financing. If you have time, you may even consider waiting until after the R7 rating associated with your consumer proposal drops off your credit report to apply for RV financing. Otherwise, you’ll likely need to work with a private or alternative lender who specializes in bad credit RV loans.

Learn more: Can I Get A Loan While In A Consumer Proposal?

Calculate How Much RV You Can Afford

Before you start searching for an RV to buy, your first step is to consider what you can afford. Remember, RVs are typically much more expensive than your average vehicle, so you’ll want to review your existing finances and consider the cost of RVs before taking this big financial step.

The average cost of an RV in Canada can vary greatly. You could be spending anywhere from as little as $5,000 to well over $300,000 for an RV. Factors that influence how much an RV will cost include the following:

New Vs Used: As is the case with a regular road vehicle, buying a used RV will typically save you a great deal of money on the purchase price.
Condition Of The RV: An RV in pristine condition will come with a premium price, while an RV in poor condition that requires some upgrading and repair may be much cheaper.
Type Of RV: There are several classes of RVs, which vary widely in price ranges. Here are some RV types that will impact how much you will pay:
- Motorhomes
- Travel Trailers
- Park Models
- Truck Campers
- Toy Haulers

Estimate Your Monthly Payments

Leasing Vs. Financing An RV

While financing is a popular way to buy an RV, leasing options are also available. So, what’s the difference between leasing and financing an RV?

	Leasing An RV	Financing An RV
Monthly Payments	Generally lower than financing	Generally higher than lease payments
Ownership	No ownership at the end of the lease	Full ownership once the loan is fully repaid
Down Payment	Lower (often no down payment is required)	Typically higher
Customization	Limited or not permitted	You can modify the RV as you like
Maintenance	Costs are often covered by warranty	Your responsibility once warranty expires
Mileage Restrictions	Typically comes with limits	No limits

Loans Canada Can Help You Find RV Financing In These Provinces

Ontario
Alberta
Quebec
British Columbia
Nova Scotia
Manitoba
Saskatchewan
New Brunswick
PEI
Newfoundland and Labrador

Additional Factors To Consider When Purchasing An RV

In addition to financing, there are other considerations to make before committing to this big purchase:

Do You Need A Special License To Drive An RV In Canada?

For the average RV, you do not need a special license to drive this type of vehicle. A standard, unrestricted driver’s license is usually enough. A specialized license will only be required if the vehicle is over a certain weight and has air brakes.

Be sure to check the specific licensing requirements in your province or territory, as the requirements may vary slightly across Canada.

Learn more: How To Get A Driver’s License In Canada

Insuring An RV In Canada

Just like a regular vehicle, RVs require insurance coverage. Getting an RV insurance policy is similar to insuring any other type of vehicle. You can buy RV insurance from banks and credit unions, insurance companies, and independent insurance brokers.

To ensure you get the best price for the coverage you need, consider using a brokerage, which will shop around for you to find the best policies based on your needs and the lowest premiums.

RV Maintenance Costs

In some ways, RV maintenance is unlike that of a regular vehicle. But there are many other factors involved in RV maintenance and repair that are unique to RVs that you wouldn’t have to worry about with a regular vehicle. Here are a few maintenance costs that you’ll need to budget for:

Oil Changes
Tire Rotations and Replacement
Brake Inspections and Repairs
Battery Maintenance
Propane Refills
Roof Maintenance
Fresh Water System Sanitizing
Slideout Maintenance
Winterizing
Engine Repairs
Electrical System Repairs
Furnace/AC Repairs

Generally speaking, routine maintenance on your RV can cost you roughly $1,000 per year. Not only should you budget for this, but you’ll also want to have some money set aside to cover last-minute repairs, which will inevitably occur, especially as the RV ages.

Interested In Financing For RV And Mobile Home Purchases?

From summer trips to the coast to leaf peeping in the fall. No matter where you live in Canada, an RV is a great way to explore the country. An RV or mobile home is an investment. But with the right financing, you can make your dream of hitting the road a reality. If you’re looking for financing for an RV or mobile home purchase, Loans Canada can help match you with a lender in your area.

Additional Reading

Car Loans 101: Check Your Credit Scores First

What Is An Upside-Down Car Loan?

How Much Should A Down Payment For A Car Be?

RV Financing FAQs

Should I buy or finance an RV?

Choosing between buying and financing an RV depends on your financial situation, needs, and long-term plans. Buying an RV outright means there’s no lien on the title and you won’t have to pay interest, but you’ll need to come up with a sizable amount of money upfront. Financing allows you to spread out the costs and makes purchasing an RV more financially accessible, but it comes with hefty interest expenses and monthly payments.

Who has the best RV financing rates?

Big banks tend to offer competitive interest rates on RV financing, but this is typically because their clients must have good credit to get approved. Your best bet is to apply for RV financing once your credit score is strong and you’ve saved up for a big down payment to secure a low financing rate.

What credit score do you need for an RV loan?

Generally speaking, credit score requirements will vary according to who you apply with. However, a high credit score will always help you get the lowest rates. That said, you may be able to obtain RV financing with a lower credit score, though you’ll need to apply with a private or alternative lender, and you’ll likely pay higher interest.

What is the interest rate for RV loans in Canada?

RV financing rates in Canada can vary heavily depending on the RV, the lender, the loan term, your credit score and finances.

How long do most people finance RVs?

RV financing loan terms can range from 5 to 20 years, but more common term lengths are around 10 to 15 years.

What is the oldest RV you can finance?

Usually, the oldest RV you can finance is up to 10 years old, though the exact age depends on the lender.

How much down payment do I need to buy an RV?

RV financing typically requires a minimum down payment of around 10%, though you may need an even bigger down payment depending on your lender.

Can an RV have a lien?

Yes, an RV can have a lien, which is a legal claim granted to a lender as collateral for a loan. The lien will be removed once you fully repay the loan.

Do I have to insure an RV in Canada?

Yes, you need to insure your RV in Canada, just like you would with a regular road vehicle.

How do I store my RV in the off-season?

Both indoor and outdoor storage facilities are available if you don’t have room on your property to store your RV. Before you store it, be sure to clean, inspect, and winterize it. You should also protect the tires, disconnect the batteries, and cover the RV (if stored outside). Also, double-check your insurance policy to ensure your RV is covered when stored.

Should I choose a bank or dealership to finance an RV?

Financing with your bank may offer more competitive interest rates and loan flexibility. On the other hand, dealership financing offers more convenience and speed when it comes to loan application and approval.

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