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What interest rate can I expect? Comparison or Advertised?

Congratulations on making the decision to buy a boat. Whether it’s your first or your next, you’ll no doubt we seeking the cheapest boat loan available so you can max-out your boating enjoyment with the extra cash. When in the market for a boat loan, many buyers focus on that all-important issue of the interest rate and for good reason. The interest rate can be key to whether you’re loan is cheap, workable and affordable or an anchor holding down your household budget.

When researching boat loans you’ll come across information in regard to the interest rates being offered by different lenders. We’ve actually made that information easier to access with our Lender Interest Rate Comparison Chart. An easy reference guide on what interest rates are currently being offered on consumer boat loans by a number of banks and lenders including Jade Boat Loans.

This information is relatively easy to access either right here on our website or by browsing across individual lender websites. What’s not necessarily so easy to determine from those interest rate notices is what interest rate you will be offered for your boat loan.

That can be as a result of lenders such as Jade, having to qualify some of our advertised rates and our boat loan information with the ‘subject to terms and conditions’ and other such statements. This is quite common practice across the financial services sector, but it can be frustrating for those seeking to know what interest rate they will receive.

Another confusing factor can be that you will see two interest rates displayed in advertisements or announcements for consumer interest rates – the advertised interest rate and a comparison rate. This is a requirement under the consumer credit law that both rates be displayed. So which rate will you get? We provide this explanation on advertised and comparison rate and the interest rate you may expect to achieve with a Jade Boat Loan.

Advertised Rates and Comparison Rates

The interest rate is a major driver of a boat loan. It determines how much in total interest your will pay when calculated along with your loan term. And hence, what your monthly repayments will be. But the interest is not the only cost included in a boat loan or any other loan. Banks and lenders also charge a range of fees and charges to loans.

These fees and charges vary from lender to lender. Most will apply a loan establishment fee and often an ongoing account fee and there will be a broker fee for service. Not only do the specific fees vary from lender to lender but the amount of those fees also varies.

With so much variation it is difficult for consumer to establish exactly what their loan will cost in total and more importantly, it makes it difficult to compare lenders based purely on their advertised interest rate. A higher rate lender may have lower fees and charges and actually work out more affordable while lower rates may have higher fees.

To make it easier for consumers to compare lenders in different loan categories, the law requires them to display what is known as the Comparison Rate. When you see a comparison rate displayed you will also notice small type below the rate – it is important so take note.

A Comparison Rate is the interest rate on a specific example of a boat loan for a specific loan amount as stated over the stated loan term with both the interest and fees and charges included. (Not all fees and charges may be included, so note the fine print).

With both the total interest which would accrue over the stated loan term for the stated loan amount added to fees and charges, a total cost of the loan can be ascertained. This total is then divided by the loan term, for example 5 years, which reveals the Comparison Rate. So the comparison rate as shown only relates to the specific example as indicated. It usually relates to a fixed interest rate loan and for the purchase of new boats only.

It is a very specific rate, but it provides consumers with a more level playing field for comparing boat loans from different lenders. Comparison rates are also often qualified with the statement ‘not all fees and charges may be included’, but this rate can still be a useful tool when seeking a cheap boat loan.

Because the fees and charges have been included, the comparison rate will always be greater than the advertised rate. You will note from our Lender Interest Rate Comparison, our Jade Boat Loans rates are the cheapest when compared with the popular lenders shown.

What boat loan interest rate can you expect?

Well for starters, our Jade consultants work towards achieving the cheapest rate possible for all our customers. The cheapest rate we are currently achieving is the one we have as our advertised rate. These cheapest rates can be achievable for loan applications which have a good credit profile and history and that meet our lender guidelines. When applicants don’t satisfy all the criteria as requested by lenders, they may still be offered our cheap advertised rate but with additional conditions or stricter criteria applied to their boat loan.

At Jade Boat Loans we handle every boat loan on an individual basis and yours will be no exception. We provide our advertised rates to be used as a guide and we encourage you to use that rate when using our boat loan calculator to get repayment estimates.

For a specific firm quote on a boat loan, simply contact us via our online services or give us a call. We have a quick quote service so we won’t delay you for too long while we source you the cheapest boat loan quote.

For a firm quote on your boat loan, contact Jade Boat Loans on 1300 000 003

DISCLAIMER: THIS ARTICLE IS PREPARED AND POSTED WITH THE INTENTION OF PROVIDING GENERAL INFORMATION AND NOT WITH THE INTENTION THAT IT BE THE ONLY SOURCE OF INFORMATIONON WHICH TO MAKE FINANCIAL DECISIONS. THOSE REQUIRING FINANCIAL ADVICE AROUND THEIR INDIVIDUAL SITUATIONS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPT FOR ANY MISREPRESENTATIONS OR ERRORS IN THE CONTACT AS SOURCED, IN GOOD FAITH, FROM A RANGE OF SOURCES.

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