When in the market for a new boat, the big question on many buyers mind is ‘what are my boat loan choices?’ Knowing ahead of time what your options are, what the interest rate and repayments may be and even having your boat financing pre-approved can assist with the big decision as to which boat to buy. As specialists in the field, we have all the loans and all the answers to the questions boat loan seekers may have.
Finance Selection
Loans for boats are divided into personal loans and business finance with different types of loans with different interest rates applicable. Which is suited to you will depend if the boat will be purely for your private recreational use or if being acquired to use in a business.
Recreational Craft: Loans for Private Buyers
Private buyers have the choice of:
- Secured Boat Loan
- Unsecured Personal Loan
The secured boat loan is the most common and suited to new craft and many used boats. The boat is used as security against the loan. Where the boat is not accepted or available to use as security, an unsecured loan is the other option.
As there is no security against the funds, unsecured loans attract a higher interest rate but can still be extremely cost-effective with our cheap interest rates.
A fixed interest rate, fixed loan terms of up to 7 years and fixed repayments are available on both types of loans. With a fixed interest rate there is no necessity to switch or fix your boat loan as it remains at the same level for the full loan term. Extra payments are permitted. With secured loans, insurance coverage on the boat must be taken out.
These loans suit the wide range of recreational craft available on the market including- cruisers, runabouts, tinnies, RIBs, trailer boats, PWCs, fishing boats, wake boats, towboats, motor yachts, sailing yachts. Both new and used boat loans can be financed.
To apply for a personal loan you will need to be over the age of 18, have employment/income and provide information regarding the financial situation, employment and residence. Holding a boat licence is not required to apply for a boat loan.
No deposit loans are available so you can include the full purchase price of the boat in your loan. Package deal loans are available that include boat and motor, boat and trailer and boat/motor/trailer combos in the same loan. Additional optional accessories and extras may be included in the loan, our consultants will advise you of the specifics.
To find out how much you may be approved to borrow so you can set your sights on a boat in a suitable price range, we offer pre-approved boat loans. The loan is quoted, sourced, negotiated and processed through to the approval stage.
Not all banks and lenders will offer specially designated boat loans as we do. So we have compiled a boat loan interest rates table of leading banks and lenders to compare current and best deals.
To get an idea of what your repayments maybe, you just enter the amount and term you want in the space provided and instantly see the estimate. To go to the next step, you can apply online or over the phone with one of our consultants.
Commercial Vessels: Marine Finance for Business Buyers
For businesses that are acquiring craft for their business, they have the choice of:
- Marine Chattel Mortgage
- Marine Commercial Hire Purchase
- Boat Leasing
The features and benefits to a business from each finance facility varies in regard to suitability to cash or accruals method of accounting; treatment of GST; how tax deductions are claimed; and balance sheet entry which relates to whether borrower or lender holds ownership of the vessel over the loan term. Referring to an accountant is advisable in selecting finance to ensure it suits the individual business objectives.
The interest rate also varies across loan types but we arrange these finance deals at a fixed interest rate. Combined with the fixed loan terms, that calculates out to a fixed monthly payment. A balloon/residual is an optional inclusion and can be an effective method of structuring repayments to suit cash flow.
Compare Loan Repayments
To compare loan types or boat types based on estimated loan repayments, simply use our boat finance repayment calculator. This device allows users to input different loan amounts, the relevant interest rate for that loan, any balloon applicable and preferred loan term. The calculator generates a repayment estimate based on those values.
- To compare different loans just change the interest rate.
- To compare different boats, just change the loan amount requested.
It’s quick and easy and essential to be prepared before you start looking at boats to buy.
We make applying for a boat loan an equally streamlined and simple process. Just give our consultants your brief and they do the hard work in sourcing you the cheapest offer, liaising with lenders and handling the paperwork.
If you have any further questions on loan choices or to start a loan application, just contact us.
To discuss your, speak with one of our consultants on 1300 000 003
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MISPRESENTED DATA AND DETAILS HEREIN.
