Know Your Limits: boat loan borrower responsibilitiesOne issue which hold people back from pursuing their boat ownership dreams is simply the unknown. Not knowing where to go to get a boat loan, how much of the boat purchase price can be borrowed and most importantly, how much they may be approved to borrow for the purchase. Boat buyers want to know their limits when it comes to their boat loan. Knowing how much they can borrow to ensure the boat they select is in sync with their boat loan.Jade Boat Loans offers self-serve resources and loan services which provide answers to these types of queries and should go a long way to eliminating any uncertainty you may have about applying for a boat loan.Boat Loan TypesJade Boat Loans offers the Secured Boat Loan for the purchase of most boats to be used for recreational and private use. This is the most commonly-used loan by boat buyers as it has a standard format which can be applied to many purposes.The boat is used as security against the loan by the lender. By using the boat as security, the borrower doesn’t need to provide any additional security by way of property ownership.Jade can achieve Secured Boat Loans for 100% of the boat purchase price, subject to individual applications and lender guidelines. Our consultants work with our customers on an individual basis to achieve this ‘no deposit boat finance’ and include additional items such as the trailer and associated equipment purchased at the same time as the boat.Boat Loan Application ProcessUnderstanding how loans are assessed by lenders should throw some light on the amount that your boat loan may be approved for. The way lenders including Jade, assess loan applications is determined in the most part by the Consumer Credit Laws. These laws ascertain the guidelines that lenders must follow and lenders are not permitted to make a loan offer to an individual if that loan is not deemed suitable to the person.Reforms to these credit laws are currently before the Australian Parliament and if the changes pass both Houses, new guidelines will be in place by April 2021. One of the key focuses of the changes is around the assessment of loan applications by lenders. Instead of focussing on the current pre-loan spending behaviour, it focuses on a more risk based assessment which looks at income and debt.All loan applications received by Jade are individually assessed based on a range of factors. These include the credit profile, income, ongoing and recurring expenses, other loans and debts and assets held. Lenders want to be confident the applicant has the ability to repay the loan.Boat Loan CalculatorAnother missing link in the buying-loan process is knowing what the price of a boat might relate to in loan repayments. Its common knowledge that interest rates are at historic lows but the interest rates offered on different loan products and for different goods and services vary.To assist our customers, we provide free use of our boat loan calculator. This enables you to quickly and easily convert a boat price to a repayment estimates. The calculator is in standard online form layout – you just input the amount of the boat and the loan term you would prefer and you’ll see a repayment estimate displayed. Would that amount fit into your monthly budget? Would you feel confident you could meet that outgoing each month? This is a very useful guide for getting a handle on boat loans in a general sense.Pre-Approved Boat LoansFrom the general sense to your specific loan and the best way to know your loan limits precisely is to apply for a pre-approved boat loan. Jade offers this service to assist our customers on a number of levels. It allows you to know exactly how much our lenders have approved your loan for so you can confidently proceed to purchase a boat within that price range. In addition, it provides customers with confidence when negotiating a deal with the boat seller.The application process is the same as when you apply for a boat loan after you’ve done the deal. It just happens beforehand. You can apply over the phone with a Jade Boat Loans consultant or complete the application online.We proceed to source you the cheapest boat loan quote and on your OK, process your application. The loan is then pre-approved for a set time period after which it simply expires. There is no obligation with a pre-approved Jade boat loan.Borrower ResponsibilitiesKnowing your loan limits is a great starting point for moving forward with your boat purchase but there are a few other responsibilities to keep in mind:-Boat insurance and registration.Having a current boating licence to operate the boat (not a loan requirement)Keeping your contact details up to date with the lender and insurer.To know your loan limits so you can proceed to purchase the boat you want, simply speak to one of our consultants to source you a quick quote or a pre-approved secured boat loan.Speak with Jade Boat Loans on 1300 000 003 to find out your loan limitsDISCLAIMER: 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.