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Financing an RV as a Primary Residence? Here’s What You Need To Know  

Nov 20, 2023 | RV Loans

Explore your financing options by calling (343) 307-4958.

A recreational vehicle takes travel to a whole new level. If you plan to acquire an RV, you stand to enjoy several benefits. Did you know that living in your RV full-time allows you to finance it as a primary residence?  

As experts in RV financing, we can help with that. However, before you take the plunge into financing an RV as a primary residence, you’ll want to keep several factors in mind.  

How To Declare Your RV as a Primary Home  

Different areas have varying rules on what qualifies as a primary residence, so always check your local or state law. While the dwelling size imposed on your state may differ, common requirements about your RV’s basic amenities and capabilities include having at least:  

  • A functioning toilet  
  • A sleeping area  
  • A cooking area  

The Canada Revenue Agency, for example, allows anyone to claim any dwellings as their primary residence, from boats and condos to RVs and houses, provided it meets the basic amenities of a home.  

To get started, you’ll need to inform your lender, financial institution, or credit union of your intention to finance the RV as a primary home.  

As long as your RV meets the requirements for a residence and you have a good credit score, you should secure full-time RV financing without hassle.  

Financing an RV as a primary residence generally requires you to apply for a secured loan, with the RV acting as your collateral. If your RV doesn’t meet the requirements of a primary residence, you may have the option to register it as an accessory dwelling unit.  

Impacts of Financing an RV as a Primary Residence  

Financing your RV as your primary home offers several benefits and drawbacks.  

Taxes  

Like a mortgage, financing an RV as a primary residence allows you to deduct the interest from your taxes. When combined with other deductible expenses, you may end up paying less on your taxes. Running a business out of your RV may also pre-qualify you for additional deductions.  

However, you want to ensure you have enough deductions to beat the standard deduction; otherwise, itemizing your taxes wouldn’t benefit you financially.   

Consider hiring a tax expert or use the interest rate to calculate potential savings beforehand to determine whether financing your RV as a primary residence makes financial sense for your circumstances.  

Loan Rates and Insurance  

Besides taxes, remember that financing your RV as a primary residence may attract better loan rates. However, you’ll likely face higher insurance costs, and if you have a lengthy repayment period, you could end up paying plenty in interest over the years.  

Canada’s Best RV Financing  

Getting financing makes owning an RV possible, but you need to choose the right financing partner to get the most affordable deal.  

Call Canada Powersports Financing at (343) 307-4958 for more information on financing an RV as a primary residence or to get pre-approved for financing. We’ve partnered with some of the industry’s top lenders and manufacturers to provide flexible and affordable RV loans for all types of credit.  

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