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Is an RV Loan Considered a Mortgage?

Jul 14, 2022 | Blog, Financing

RVs are excellent options for people looking for a vehicle and a holiday home in one package. However, since these vehicles cost hundreds of thousands, paying upfront for a unit is not always practical. Many people take out a loan.

Is an RV loan considered a mortgage? Yes, but only in specific cases. We’ll go over the technicalities in this post.

What Is an RV Loan?

An RV loan funds the purchase of a recreational vehicle, camper, travel trailer, or motorhome. Online lenders, banks, RV dealerships, and credit unions offer RV loans. The RV is the collateral.

RV loans are like mobile home loans. The key difference is that the latter requires you to live in the RV. 

RV loan interest rates and terms are generally different from standard auto loans. The repayment window may reach 20 years.

The interest rate you’ll receive when you purchase an RV with a loan will vary between 10% and 50%. Documentation such as your credit history, tax returns, and financial statement influence the final offer.

The RV Loan and Mortgage Comparison

To answer whether an RV loan is considered a mortgage, you must first understand how lenders view the transaction. You can apply for a conventional mortgage if you intend to use an RV as a mobile home on land you own. The mortgage application will take the land into consideration.

If you don’t own the land, you can only take out a standard RV loan—a type of personal loan. However, you may also apply for chattel mortgages for purchasing movable personal properties, including RVs.

In traditional mortgages, the immovable house is the collateral. In this case, the property is the collateral. Chattel mortgages allow you to move the property anywhere you wish.

The mortgage will stand regardless of where you move. The higher-risk nature of these mortgages means that the interest rate you’ll receive for the loan will be much higher than mortgages.

How To Apply for an RV Loan

Applying for an RV loan is no different from applying for other financing products. Here’s what you should do:

  • Go over your finances and put together the down payment. You need a credit score above 600 to get the best offers. Most lenders will also require a 10% down payment.
  • Compare lenders. There are many lenders to choose from, including your dealership. Compare rates and terms between them and choose the most favourable.
  • Gather documentation and apply. With the right documentation and down payment, you will likely receive approval.


So, is an RV loan considered a mortgage? Yes, but only if you intend to live in the RV as a mobile home on land you own. If you don’t own the land, you’ll have to consider chattel mortgages or standard RV loans.

However, the interest rates and loan terms on chattel mortgages and RV loans are quite different from traditional home mortgages.

Are you considering an RV loan? Get in touch with Canada Powersports Financing today to discuss your options.

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