Learn About RV Financing
Everything you need to know before applying for an RV loan in Canada — in plain, easy-to-follow language.
RV Loans vs. Personal Loans vs. Lines of Credit
RV Loan (Secured)
The most common way to finance an RV. The RV itself serves as collateral, which means lenders take on less risk — so you typically get a better interest rate than an unsecured loan. Terms can run 5 to 20 years depending on the loan amount and lender.
Personal Loan (Unsecured)
No collateral required, so approval is based purely on your credit history and income. Interest rates are typically higher (often 10–20%+), and terms are shorter — usually 1–7 years. Better for smaller RV purchases or if you want to keep the title clean.
Home Equity Line of Credit (HELOC)
If you own your home, you may be able to borrow against its equity at mortgage-level interest rates. This can be the cheapest way to finance an RV, but you're putting your home at risk if you can't repay.
How Lenders Assess Your Application
Credit Score
The single biggest factor. Most RV lenders want to see 650+, with the best rates reserved for 700+. A lower score doesn't mean automatic rejection, but expect higher rates and larger down payment requirements.
Income & Debt-to-Income Ratio
Lenders look at your gross monthly income versus your total monthly debt payments. Keeping this ratio below 40% gives you the best approval chances. Retirement income, pension, and investment income all count.
RV Age & Value
Newer RVs qualify for longer terms and lower rates. Many lenders restrict financing on RVs more than 10–15 years old, or require larger down payments. The RV is their collateral, so condition matters.
Down Payment
A larger down payment (20% or more) signals commitment and reduces lender risk, often translating directly into a better interest rate. It also means smaller monthly payments and less total interest paid.
Dealer Financing vs. Bank/Credit Union vs. Specialty Lenders
Dealer Financing
Convenient — you arrange everything at the dealership. But dealers often mark up interest rates to earn a commission. Always get a pre-approval from your own bank first so you have a benchmark to compare against.
Banks & Credit Unions
Often offer the best rates for existing members or customers with good credit. Credit unions are member-owned and frequently have more flexible lending criteria. Worth applying here first.
Specialty RV Lenders
Companies that focus exclusively on recreational vehicles. They understand the RV market deeply, often finance types of RVs that banks won't, and may offer longer terms. Good option if you have a unique vehicle or situation.
Online Lenders
Fast approvals and competitive rates. Good for comparison shopping. Check that they're licensed to operate in your province and read terms carefully before accepting any offer.
Typical Terms in Canada
Loan Amounts
Most RV loans start around $10,000 and go up to $500,000+ for luxury motorhomes. The amount you qualify for depends on income, credit, and the RV's appraised value.
Interest Rates
RV rates sit between mortgage rates and unsecured loan rates. Expect roughly 6.49% to 14.99% depending on your credit tier, the RV type, and the lender. Rates change frequently — always check current offers.
Loan Terms
Terms typically run 5 to 20 years (60 to 240 months). Shorter terms save money on interest; longer terms lower monthly payments. Loans over $75,000–$100,000 are more likely to qualify for 15–20 year terms.
Ready to find a lender?
Browse our province-by-province directory of Canadian RV financing providers.
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