How much can I borrow with a caravan loan?

It’s possible to get caravan finance from $5,000 right up to $100,000, meaning most caravans and motorhomes are within range. The average amount requested for a caravan loan by Australian borrowers is $54,188 according to Money data. The average is $69,673 for new caravans and $41,080 for used caravans. But just like your interest rate will depend on the details in your application, the amount you can borrow will too. For example, borrowers with a good credit history may be able to borrow a larger amount to fund their caravan purchase. Your income and other expenses could also determine your borrowing capacity.

What term should I get on my caravan finance?

Most caravan loans are taken out over a five-year term, real borrower data from Money shows. But you can get a term as short as one year, or as long as seven years. A longer term can make repayments more affordable, but you will most likely end up paying more in interest overall. Be wary of lenders trying to lock you in for a longer term than you need.

What caravan loan fees are there?

Here are the main fees you want to minimise on your caravan finance: - **Upfront costs: **Establishment fees and application fees. - **Ongoing fees:** Annual and monthly fees. - **Late payment fees: **Charged if you miss a payment. - **Extra repayment fees:** Some lenders tag on a fee if you pay more than the minimum regular repayment. - **Early payout fee: **You might be charged another fee if you repay the loan before the contracted term is up.

Can I get caravan finance with bad credit?

You may still be able to get a caravan, motorhome or RV loan if you have a [bad credit score](/credit-score/bad-credit-score). But you will likely be charged a higher interest rate. Your credit score is one of the factors lenders look at when weighing up the risk of giving a loan to a borrower and deciding what interest rate to charge. The major lenders (like the big banks) generally don’t lend to borrowers with bad credit. But there are specialist finance providers who are prepared to help borrowers with a bad credit history to buy a caravan. These are the generally the same lenders that offer [bad credit car loans](/car-loans/bad-credit-car-loans). This is why it can help to compare options and see which lenders you match with BEFORE applying for a caravan loan. You can also work to [improve your credit score](/credit-score/how-to-improve-your-credit-score-fast) before you apply.

Can I get my caravan, motorhome, or RV loan pre-approved?

Yes, most lenders offer [pre-approval](/car-loans/car-loan-pre-approval) for caravan loans. Pre-approval is usually valid for one to three months giving you plenty of time to find a caravan, motorhome or RV. However, if the pre-approval expires you will need to make a new application.

Can I get a caravan loan with a balloon payment?

Some lenders allow you to include a [balloon payment](/car-loans/balloon-payments) on your caravan finance. This means that instead of paying off the full loan amount gradually through the regular repayments, a portion of the loan (usually between 20-50%) will need to be repaid as a lump sum at the end of the loan term. Including a balloon payment on your caravan finance means you have lower regular repayments during the loan term, but a high final repayment is required to pay off the caravan completely. You may have the option to refinance the balloon amount through a new finance term. Some lenders limit balloon payments to newer caravans, so check the eligibility criteria before deciding if that option is going to work in your situation.

Should I use my home loan to finance a caravan?

Some people fund their caravan purchase by [refinancing their home loan](/home-loans/refinance/) to access equity in their property. Essentially you increase your [home loan](/home-loans/) balance to pay for the caravan, meaning either a higher regular home loan repayment, or a longer loan term based on the higher amount. While this can be a convenient option for financing a caravan you do not need to take out a brand new loan) it is not necessarily going to be a cheaper option. Home loans are typically spread over a much longer term, usually 25-30 years. The longer the finance term, the more you pay in interest. If you do go for a home loan top up, consider making extra repayments to pay down the additional amount faster.

Can I buy a caravan from a private seller using a loan?

Yes you generally can. The process will probably be slightly different and your lender will ask for documents from the seller before approving the loan. Make sure do thorough checks on the vehicle if you're getting [a loan to buy through a private sale](/car-loans/private-sale-car-loans).

What are caravan loan repayment instalments?

You're usually able to set your payment instalments to fit your pay cycle. Most lenders have weekly, fortnightly or monthly repayment options for caravan loans. To make paying a caravan loan off easier, and to ensure you don't get penalised for late payment, choose a repayment schedule that suits your pay cycle. Use our [caravan loan calculator](/personal-loans/caravan-loans/caravan-loan-calculator) to see what your repayments would be weekly, fortnightly or monthly.

What is the comparison rate on a caravan loan?

When comparing caravan loans, it's a good idea to look at the comparison rate as well as the interest rate. The comparison rate estimates the cost of a loan per year including interest AND most fees and potential charges. This is designed to give a more realistic reflection of the cost of a caravan loan. However, variable fees are not included in the comparison rate. These include the likes of late payment or dishonour fees and early repayment fees that may apply for some borrowers.

Can I use caravan finance to cover extra costs?

With a secured caravan loan, the loan can usually only be used to cover the purchase of the vehicle itself. That’s because your caravan will act as security for the loan, and lenders typically only lend up to 100% of the caravan’s value. Unsecured loans offer more flexibility. You can generally use the loan for any purpose, including extra costs like insurance, modifications and other add-ons. However, the borrowing amounts available tend to be lower on unsecured loans, which will likely limit how much you can borrow above the value of the caravan to pay for extras.

Can I get a mortgage to buy a caravan?

Generally it's not possible to get a home loan to purchase a caravan, even if the caravan is your home. Mortgage lenders have strict rules on what assets they will lend against. Typically the property must be a house, townhouse, apartment or other fixed dwelling. If you want to buy a caravan using finance, a personal loan may be the most appropriate option if you can meet the lender's eligibility criteria.

Best Caravan Loans Australia: Compare Caravan Finance

Why compare caravan loans with Money

30+ Australian lenders to choose from

Personalised rates

No credit score impact

$200 best match guarantee

Compare a selection of some of the best caravan loan interest rates in Australia, with ranges based on the borrower's credit score and other factors.

	Harmoney - Unsecured Loan
Interest rate on caravan finance	5.76% p.a. - 24.03% p.a.
Comparison rate*	6.55% p.a. - 24.98% p.a.
Loan amounts	$2,000 - $70,000
	Plenti - Secured Caravan Loan
Interest rate on caravan finance	6.57% p.a. - 24.09% p.a.
Comparison rate*	6.57% p.a. - 26.28% p.a.
Loan amounts	$5,000 - $50,000
	NOW Finance - Secured Caravan Loan
Interest rate on caravan finance	6.75% p.a. - 26.95% p.a.
Comparison rate*	6.75% p.a. - 26.95% p.a.
Loan amounts	$5,000 - $100,000
	Liberty Financial - Secured Caravan Loan
Interest rate on caravan finance	6.52% p.a. to 19.19% p.a.
Comparison rate*	6.95% p.a. to 20.77% p.a.
Loan amounts	$5,000 - $80,000
	ING - Unsecured Loan
Interest rate on caravan finance	6.89% p.a. to 18.99% p.a.
Comparison rate*	7.10% p.a. to 19.23% p.a.
Loan amounts	$5,000 - $60,000
	Moneyplace - Unsecured Loan
Interest rate on caravan finance	7.24% p.a. to 19.99% p.a.
Comparison rate*	7.24% p.a. to 21.49% p.a.
Loan amounts	Up to $80,000
	Our Money Market - Secured Caravan Loan
Interest rate on caravan finance	6.57% p.a. - 18.99% p.a.
Comparison rate*	7.19% p.a. - 21.78% p.a.
Loan amounts	$2,001 - $75,000
	MoneyMe - Unsecured Loan
Interest rate on caravan finance	6.74% p.a. - 24.49% p.a.
Comparison rate*	8.13% p.a. - 25.87% p.a.
Loan amounts	$5,000 - $50,000
	ANZ - Unsecured Personal Loan for Caravan
Interest rate on caravan finance	7.49% p.a. - 19.99% p.a.
Comparison rate*	8.18% p.a. - 20.58% p.a.
Loan amounts	$5,000 - $50,000
	G&C Mutual Bank - Fair Rate Unsecured Loan
Interest rate on caravan finance	7.99% p.a. - 16.99% p.a.
Comparison rate*	8.20% p.a. - 17.22% p.a.
Loan amounts	$1,000 - $90,000
	Society One - Secured Caravan Loan
Interest rate on caravan finance	8.20% p.a. - 24.89% p.a.
Comparison rate*	8.27% p.a. - 25.64% p.a.
Loan amounts	$5,000 - $50,000
	Great Southern Bank - Unsecured Caravan Loan
Interest rate on caravan finance	7.99% p.a. to 19.99% p.a.
Comparison rate*	8.31% p.a. to 20.35% p.a.
Loan amounts	$5,000 - $75,000
	Bank of Melbourne - Unsecured Loan
Interest rate on caravan finance	7.49% p.a. - 20.59% p.a.
Comparison rate*	8.40% p.a. - 21.43% p.a.
Loan amounts	$2,000 - $50,000
	Bank of Melbourne - Unsecured Loan
Interest rate on caravan finance	7.49% p.a. - 20.59% p.a.
Comparison rate*	8.40% p.a. - 21.43% p.a.
Loan amounts	$2,000 - $50,000
	Bank of Melbourne - Unsecured Loan
Interest rate on caravan finance	7.49% p.a. - 20.59% p.a.
Comparison rate*	8.40% p.a. - 21.43% p.a.
Loan amounts	$2,000 - $50,000
	Westpac - Unsecured Caravan and Campervan Loan
Interest rate on caravan finance	7.99% p.a. - 20.49% p.a.
Comparison rate*	9.18% p.a. - 21.61% p.a.
Loan amounts	$4,000 - $50,000
	Wisr - Unsecured Recreational loan
Interest rate on caravan finance	8.49% p.a. - 23.29% p.a.
Comparison rate*	9.33% p.a. - 24.05% p.a.
Loan amounts	$5,000 - $62,000
	NAB - Unsecured Caravan Loan
Interest rate on caravan finance	8.49% p.a. - 20.49% p.a.
Comparison rate*	9.54% p.a. - 21.49% p.a.
Loan amounts	$5,000 - $55,000
	Commbank - Unsecured Loan
Interest rate on caravan finance	8.50% p.a. - 20.50% p.a. (fixed); 8.50% p.a. - 20.50% p.a. (variable)
Comparison rate*	9.89% p.a. - 21.79% p.a. (fixed); 9.89% p.a. - 21.79% p.a. (variable)
Loan amounts	$4,000 - $50,000
	Pepper Money - Secured Caravan Loan
Interest rate on caravan finance	9.24% p.a.
Comparison rate*	10.57% p.a.
Loan amounts	Up to $110,000
	Latitude Financial Services - Secured or Unsecured Caravan Loan
Interest rate on caravan finance	9.49% p.a. - 29.99% p.a.
Comparison rate*	10.93% p.a. - 31.83% p.a
Loan amounts	From $5,000

	Interest rate on caravan finance	Comparison rate*	Loan amounts
Harmoney - Unsecured Loan	5.76% p.a. - 24.03% p.a.	6.55% p.a. - 24.98% p.a.	$2,000 - $70,000
Plenti - Secured Caravan Loan	6.57% p.a. - 24.09% p.a.	6.57% p.a. - 26.28% p.a.	$5,000 - $50,000
NOW Finance - Secured Caravan Loan	6.75% p.a. - 26.95% p.a.	6.75% p.a. - 26.95% p.a.	$5,000 - $100,000
Liberty Financial - Secured Caravan Loan	6.52% p.a. to 19.19% p.a.	6.95% p.a. to 20.77% p.a.	$5,000 - $80,000
ING - Unsecured Loan	6.89% p.a. to 18.99% p.a.	7.10% p.a. to 19.23% p.a.	$5,000 - $60,000
Moneyplace - Unsecured Loan	7.24% p.a. to 19.99% p.a.	7.24% p.a. to 21.49% p.a.	Up to $80,000
Our Money Market - Secured Caravan Loan	6.57% p.a. - 18.99% p.a.	7.19% p.a. - 21.78% p.a.	$2,001 - $75,000
MoneyMe - Unsecured Loan	6.74% p.a. - 24.49% p.a.	8.13% p.a. - 25.87% p.a.	$5,000 - $50,000
ANZ - Unsecured Personal Loan for Caravan	7.49% p.a. - 19.99% p.a.	8.18% p.a. - 20.58% p.a.	$5,000 - $50,000
G&C Mutual Bank - Fair Rate Unsecured Loan	7.99% p.a. - 16.99% p.a.	8.20% p.a. - 17.22% p.a.	$1,000 - $90,000
Society One - Secured Caravan Loan	8.20% p.a. - 24.89% p.a.	8.27% p.a. - 25.64% p.a.	$5,000 - $50,000
Great Southern Bank - Unsecured Caravan Loan	7.99% p.a. to 19.99% p.a.	8.31% p.a. to 20.35% p.a.	$5,000 - $75,000
Bank of Melbourne - Unsecured Loan	7.49% p.a. - 20.59% p.a.	8.40% p.a. - 21.43% p.a.	$2,000 - $50,000
Bank of Melbourne - Unsecured Loan	7.49% p.a. - 20.59% p.a.	8.40% p.a. - 21.43% p.a.	$2,000 - $50,000
Bank of Melbourne - Unsecured Loan	7.49% p.a. - 20.59% p.a.	8.40% p.a. - 21.43% p.a.	$2,000 - $50,000
Westpac - Unsecured Caravan and Campervan Loan	7.99% p.a. - 20.49% p.a.	9.18% p.a. - 21.61% p.a.	$4,000 - $50,000
Wisr - Unsecured Recreational loan	8.49% p.a. - 23.29% p.a.	9.33% p.a. - 24.05% p.a.	$5,000 - $62,000
NAB - Unsecured Caravan Loan	8.49% p.a. - 20.49% p.a.	9.54% p.a. - 21.49% p.a.	$5,000 - $55,000
Commbank - Unsecured Loan	8.50% p.a. - 20.50% p.a. (fixed); 8.50% p.a. - 20.50% p.a. (variable)	9.89% p.a. - 21.79% p.a. (fixed); 9.89% p.a. - 21.79% p.a. (variable)	$4,000 - $50,000
Pepper Money - Secured Caravan Loan	9.24% p.a.	10.57% p.a.	Up to $110,000
Latitude Financial Services - Secured or Unsecured Caravan Loan	9.49% p.a. - 29.99% p.a.	10.93% p.a. - 31.83% p.a	From $5,000

The table is sorted by lowest comparison rate. Caravan loan interest rate comparison based on products analysed by Money advertising a high and low interest rate range. Rates are current as of 2 January 2024. Check with the provider for full current loan details, including rates, fees, eligibility and terms and conditions. While this is an extensive list of caravan loans available in Australia, not all loans in the market are shown. This list is for reference only and does not reflect the selection of loans you may see if you get a personalised quote through Money. *The comparison rate is based on a secured/unsecured fixed rate personal loan of $30,000 over 5 years. WARNING: Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.

What caravan finance options are there in Australia?

There are two main caravan finance options in Australia: a secured caravan loan and unsecured caravan finance. If you want to keep your costs as low as possible it’s important to know the difference.

It’s important to pay attention to whether the caravan finance you’re considering is secured or unsecured. The term ‘caravan loan’ does not always mean a secured loan. Here’s an example from a major Australian bank.

Secured caravan loan

The loan will be secured by the caravan you buy, meaning it could be reclaimed by the lender if you can’t repay the loan. But this extra security for the lender generally means this is a cheaper form of caravan finance, with higher loan amounts available.

Unsecured caravan loan

An unsecured caravan loan is really just a standard personal loan aimed at caravan buyers. Your caravan won’t act as security (collateral), meaning there is more risk for the lender. This kind of finance is usually more expensive than a secured caravan loan.

How do caravan loans work?

Here are some of the main features of caravan loans in Australia:

Loan amounts between $5,000 and $100,000, with no deposit required

Can be used to finance the purchase of a new or used caravan

Typically come with a fixed interest rate but there are variable rate options

Loan terms from 1-7 years

Flexible repayment options (weekly, fortnightly, or monthly)

Approval can often be straightforward and quick

Can finance a range of vehicle/trailer types including camper trailers, RVs, motorhomes or converted buses

Secured caravan loans are often available for older caravans, as they do not depreciate in value as fast as cars

The lowest rate caravan loan interest rates in Australia start from around 6.00% - 7.00% p.a. for borrowers with the highest credit score and otherwise strong applications.

But rates can vary significantly for different borrowers, even on exactly the same caravan finance from the same lender.

The average interest rate on caravan loans on Money’s database is 14.17% as at February 2024.

The actual rate you get on a caravan loan will depend on factors including:

Your credit score

Your broader financial situation (e.g. income and other debt)

The age of the caravan you’re buying

Whether you contribute a deposit (usually not mandatory but may mean you get a lower rate)

Whether you own your own home (a bricks and mortar one).

On the average new caravan loan ($69,673 according to Money data), the difference between paying 8% and 10% interest is $4,058 in extra interest over a five-year loan term.

Caravans are not cheap and have been in high demand since the pandemic. You certainly don’t want to add to the cost unnecessarily by overpaying on the finance.

There are five main factors that will save borrowers money and hassle when shopping for the best caravan loan deal.

1

Interest rate

Look for the lowest rate you’re eligible for. Importantly, this won't always be the same as the lowest rate advertised by a lender.

2

Loan term

This is how long you’re borrowing the money for. A longer term means cheaper repayments but you’ll pay more overall interest.

3

Fees

Upfront fees can be significant (over $1,000 in some cases) and some lenders charge ongoing fees too (annual or monthly).

4

Extra repayments possible?

Being allowed to pay off more than the minimum amount each month without penalty will help you save on interest.

5

Borrowing amount

Does the lender offer loan amounts to match the caravan you’re buying?

How to minimise fees on your caravan finance

Shaun McGowan, Loans Expert

You almost certainly won’t get anything extra for your money from a lender that charges higher fees on their caravan finance. Watch out for loans with an attractive interest rate but a high comparison rate – the difference is fees. A loan with no fees for early repayment can also be a big money saver if you want to get ahead of your repayments and pay off the loan early.

Shaun McGowan, Loans Expert

You can generally apply for a caravan loan in Australia if you are:

over the age of 18; and

an Australian citizen or permanent resident; and

employed or have a steady source of income to cover the loan repayments

If you meet the basic eligibility for a caravan loan, you will then need to compare lenders and assess their individual approval criteria. For example, some will only finance caravans up to a certain age.

Here are five steps to help set you up for success.

1. Compare as many lenders as possible

Remember, the headline rate you see advertised by lenders may not be the rate you end up paying. You need to compare personalised caravan finance rates. Just make sure you use a comparison tool that won’t impact your credit score.

2. Prepare for your application

To save yourself time down the track, gather together your most recent payslips (or tax documentation if you’re self-employed) plus bank statements and statements for any other loans and credit cards you have.

3. Apply for pre-approval with your chosen lender

You can do this before you have found a caravan to buy. With pre-approval, instead of releasing the loan funds at that time, the lender conditionally approves you for a set amount. This gives you a budget to find the right caravan. Of course, if you have already found a caravan you want, your application will be for full approval.

4. Go caravan shopping

The fun part. If the lender grants pre-approval on your caravan finance, you’ll have a fixed maximum budget to play with. The lender will also let you know what restrictions (if any) there are on the kind of van you can purchase.

5. Give the lender details about the caravan

As a last step, the lender will complete a final assessment of your application based on the vehicle being used as security. You’ll need to provide registration details and details about the seller. If you’re approved, the lender will fund the loan (usually by transferring the funds directly to the caravan seller). For a secured caravan loan, you’ll also need to provide proof that the caravan is insured.