Due to the limitations and restrictions caused by coronavirus in 2020, interest in boating has grown significantly with more and more people deciding owning a boat is right for them. If you’ve decided that 2021 is the right time for you to get into boating, we’ve put together this compact guide of information around loans and other aspects of the boat buying and owning process.
This information can be used in conjunction with the other resources on our websites including our lender comparison chart and our boat loan calculator. Both ideal tools for calculating rough estimates on possible repayments based on the purchase price of a boat. Knowing what repayments might be before you start looking at boats can be a great help.
If you want to just cut to the chase so to speak, then simply call Jade and let our consultants do all the work for you. We’ll source you the cheapest boat loan quote from across our large lender group and handle all the fiddly paperwork.
For those who want a full coverage, here’s our 2021 guide to boat finance.
Boat Loan Interest Rate Scenario
Interest rates on any type of loan are usually the major point of interest for borrowers. So let’s take a look at the interest rate scenario first up. Through 2020 the cash rate was cut several times by the RBA, meaning lenders paid less to access their funds which eventually flows through the channels to boat loans. Interest rates are at, yes you’ve heard it many times, historic low levels, and are tipped to remain so for some time.
When you take out a boat loan with Jade Boat Loans, we arrange all our secured boat loans at a fixed interest rate. That means the interest rate and the monthly boat loan repayments will remain at the same level for the full loan term. If the RBA does change interest rates in either direction or if the bank/lender we have arranged your loan from changes their rate, your existing boat loan will not change.
Consumer Credit Law Changes
One of the big finance news stories of 2020 was the pre-budget announcement by the Federal Government to make significant changes to consumer credit laws. In particular, the government is aiming to simplify the credit process so more people can have faster access to funds.
This initiative has home mortgages at its core but the same overlying regulations apply to all consumer finance, including boat loans. The changes are due to come into effect in April 2021, barring any amendments or failure to pass legislation.
The changes may affect some boat loan applicants but be assured, by using Jade Boat Loans to source and secure your boat loan, you will always enjoy a streamlined process with prompt service, fast approvals and timely settlement.
Jade’s Secured Boat Loan
Any changes to the consumer credit laws will not change the basic structure of our secured boat loan, it is the most commonly used form of loan for recreational boat buyers for new and many used boats. The structure follows a general consumer secured loan format which does not change due to economic or market conditions.
- The boat is used as the security for the boat loan.
- Jade sources a fixed and cheapest interest rate boat finance which remains the same for the loan term.
- Your consultant negotiates the repayment that best meet your requirements and the repayments are also fixed at a monthly rate.
- The loan term is fixed so there is no need to review or assess your loan over that term.
- Additional payments are permitted so if you get an extra tax cut come 1 July and want to repay your boat loan earlier, that’s a possibility.
- No deposit boat loans are available so it is possible, dependent on individual lenders, to borrow 100% of the purchase price of the boat.
- Pre-approved boat loans are available through Jade so you can arrange your loan prior to checking out boats to buy and be confident your loan is approved.
Dates to Note for 2021
- For existing boat owners a timely reminder to remember to renew your boat and trailer registration and insurance policy. Operating an unregistered boat can result in hefty fines.
- Renew your boat licence by the due date! Many people are overlooking their driver licence renewals so don’t let that happen with your boat licence. Check the renewal date NOW and put a reminder in your phone.
- Changes to consumer credit laws due in April.
- Changes to life jacket regulations and safety standards came into effect 1 January 2021. Ensure yours are compliant by referring to your state marine authority.
- Boat shows – we’ve posted an article with many dates of boat shows and other boat-related outdoor shows. Check the calendar and try to attend a show near you for tips, hints, new boat releases and other information.
Refer to our article library regularly for further updates on both the boat lending sector and other general boating topics.
To get organised with your boat loan, just contact us or apply online.
For a quote on a boat loan, contact Jade Boat Loans on 1300 000 003
DISCLAIMER: THE CONTENT IN THIS ARTICLE IS PREPARED SOLELY FOR GENERAL INFORMATIONAL PURPOSES. THIS CONTENT IS NOT PROVIDED AS FINANCIAL ADVICE. IF YOU REQUIRE ADVICE AROUND YOUR PERSONAL FINANCIAL SITUATION IT IS RECOMMENDED THAT YOU CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO ERRORS OR MIS-REPRESENTATION OF CONTENT AS IT PERTAINS TO GOVERNMENT MEASURES AND POLICIES, PRODUCTS SPECS AND DETAILS AND OTHER DATA AS SOURCE VIA THIRD PARTIES.