Whether they are upgrading, replacing or purchasing their first RV, most buyers know exactly what they want in their vehicle to suit their travel and holiday plans. But when RV buyers require finance for the purchase, not all may be as certain about what’s required to apply for a caravan loan and how they can get the best interest rate finance.
Knowing the requirements for a RV loan ahead of making a purchase decision may assist with narrowing the short-list to affordable options, may expedite loan approval, and may ensure the most competitive rates on finance are achieved. And it may even speed up the entire purchase process and get buyers on the road in their new RV sooner.
If you’re in the market for a RV and planning to secure finance for the purchase, use this quick overview as well as our available resources and services to get across the specifics of applying for a caravan loan. Note that loan application requirements are essentially the same for all types of RVs – caravans, campers, motorhomes, hybrids, toy haulers and others.
Eligibility Requirements to Apply for a Caravan Loan
RV loans for individuals are Consumer Credit, a lending market sector which ASIC regulates. ASIC has established the requirements for individuals to be eligible to take on finance and the guidelines that lenders must adhere to. Beyond the essential requirements, lenders can also set their eligibility criteria to approve caravan loan applications – more on that below.
To apply for a caravan loan, you must:
- Be 18 years of age or older.
- Be Australian or New Zealand permanent resident, hold relevant visa.
- In receipt of taxable and regular income in Australia, verifiable.
- Of a fixed Australian address.
- Have credit history, score, profile.
Details, Documents, Financials Required to Apply for a Caravan Loan
Whether applying for Secured Caravan Finance or an Unsecured Personal Loan to purchase an RV, lenders will require the same details and documents on the applicant’s personal and financial position. Note the requirements and have your docs ready when you speak with one of our experts to commence your application. Being well-prepared can ensure a faster quote, faster offer, and faster loan approval.
Requirements include:
- Identification with Australian-issued documents which can include passport, driver’s licence, birth certificate, photograph, Medicare card.
- Current loans and other liabilities – balance on finance owing, credit cards, BNPL outstanding amounts.
- Income details with wages payslips, investment property income, income from shares and Government bodies and programs, income tax returns.
- Regular outgoings and expenses such as rent, utilities, insurance, other spending and bills.
- Bank statements.
- Assets held in your name such as property, vehicles, boats, investments etc.
Information and specifics of the RV being purchased will need to be provided with the loan application – new/used, make, model, year, any accessories, price, etc. If applying for finance before the RV has been selected, an indication of the type of vehicle, new or used and a price range, should be provided to the lender.
Deposit and Security Requirements
When lenders approve loans, they want some form of collateral – security, to be provided. This is the lender’s assurance they can recover outstanding monies if the borrower defaults on the loan. If applying for Secured Caravan Finance, most lenders will accept the RV as the main collateral against the loan. Whether or not additional assets need to be provided as extra collateral will be advised when the lender assesses the application.
Another aspect to consider is the deposit you will need to apply for a caravan loan and get approved. Lenders will assess individual applications to establish the borrowing limit of that individual. That will determine how much of the total purchase price of the RV can be included in the loan. That then determines what deposit will be required.
Deposit and collateral requirements are aspects which are not known until after the application has been lodged and assessed. But they can be issues worth considering – having a back-up plan for, prior to applying. Your Jade expert will be assisting with these issues when handling your loan requirements.
Individual Lender Requirements
In addition to the regulatory requirements of documentation and details to apply for a caravan loan, applicants may also need to meet individual lender criteria. These can be around the minimum and maximum amounts that lenders offer for RV loans, minimum credit scores, and similar. Our experts will be identifying the lender with approval criteria which is a best match to your profile.
Requirements to Get the Best Interest Rates
While we work on securing the best caravan loan interest rate for every customer, in general terms, the better the credit score the better the rate offer. Credit history and scores are integral to lending and are checked by lenders as a standard part of the application assessment process.
If you haven’t reviewed your personal credit history for a while, go to Moneysmart for details on how to get a free copy of your report and fix any errors.
Improving your balance sheet by reducing debt can be a way to improve your credit position and attract better interest rates and better loan conditions.
Use Our Services to Apply for a Caravan Loan
We appreciate that applying for finance can be confusing, time-consuming and complex. Jade Caravan Finance assists RV buyers to apply for a caravan loan by selecting lenders, advising requirements and handling the entire process for customers. Our application service is streamlined and simple with online and phone resources. Save time, increase convenience, and secure RV finance individually sourced to meet your requirements.
For a streamlined way to apply for a caravan loan, speak with Jade Caravan Finance.
DISCLAIMER: THE DETAILS AND INFORMATION IN THIS CONTENT ARE PREPARED AND PRESENTED PURELY FOR INFORMATION AND NOT INTENDED IN ANY WAY AS THE SOLE SOURCE OF FINANCIAL ADVICE FOR CARAVAN PURCHASING. IF ADDITIONAL FINANCIAL ADVICE IS REQUIRED, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, PRODUCT DESCRIPTION VARIATIONS, OR OTHER MISREPRESENTATIONS OF INFORMATION AS PRESENTED.
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