Boat Loans

Financing Your Boat Purchase

Owning a boat is a great feeling. However, you cannot deny that owning one comes with huge financial commitments. You will need to pay as high as hundreds of thousands of Australian dollars to get your dream boat. Unfortunately, this high cost can mean that you find it difficult to get that boat of your choice in some cases. Regardless, that does not have to bother you anymore. You can now receive help through a boat loan.

What Is A Boat Loan?

A boat loan is a finance option where you can access the capital needed to purchase a boat. In this instance, you are relieved of the obligation of paying the total purchase price at once and by yourself. A lender offers to pay the purchase price on your behalf. In return, you commit to repay the said sum over a period.

Typically, under this arrangement, you are obligated to pay interest. This is usually the reward of the lender for providing the finance to you. The interest is also calculated as part of the repayment plan. Now, once you complete the repayment, the whole boat loaning arrangement comes to an end.

What You Need to Get a Boat Loan

Getting a boat loan is a great choice. However, there are existing requirements that you must satisfy to obtain a boat loan. Generally, these requirements fall under documentation and information. They are as follows:

  • Have a recognised means of identification. This might be through a driver’s license or birth certificate. This must also reflect that the person who intends to get the loan is aged over 18 years
  • The person must establish that he or she is currently employed, for instance, through a payslip. Alternatively, that person must establish that he has a regular source of income
  • Employment history
  • Residential information
  • Existing credit obligations

Available Financing Options

There are various available boat finance options that one can take advantage of. Usually, this will depend on whether you obtain the loan for a personal boat purchase or which commercial use.

If you are getting the boat for personal use, there are two finance options that you can take advantage of. They are:

Secured Boat Loan

This is a loaning option that requires you to provide any security for the loan. In this instance, you intend to purchase whether a used or new boat. In turn, you are required to provide an asset to secure the loan. In most cases, this is the boat that you intend to loan. This loaning option offers competitive rates and lowers interest obligation since there is security.

Unsecured Boat Loan

This is a loaning option that does not require you to provide any security for the loan. In this instance, the lender provides money without any security whatsoever. In turn, this loaning option usually attracts a higher interest rate due to the higher risk involved.

On the other hand, if you are getting a boat for commercial use, other finance options will fit your needs. The two most popular options are:

Chattel Mortgage

This is quite a popular option, and it is very similar to a secured loan option under the personal loan arrangement. However, the difference is that this is a commercial arrangement. Under this arrangement, a lender agrees to provide the purchase sum of the boat to you. Afterwards, you produce to purchase the vehicle in your name, having complete ownership.

However, you then enter into a mortgage agreement favouring the lender with the boat you have just purchased. As in every loan agreement, you then commit to repaying the loaned amount plus interest. Once you complete this, the mortgage agreement comes to an end.

Commercial Hire Purchase

Under this arrangement, you get the boat for hire for a specific duration. During this period, you get possession of the boat rather than ownership. You also commit to making repayments to the lender. Once you then complete the repayment, the boat’s ownership reverts to you, and the hire purchase arrangement comes to an end.

Boat Loan Calculator

Getting a loan sure comes with its fair share of difficulty. This is thanks to the uncertainty that comes with the repayment. You are most likely asking yourself if you can afford to repay the loan after getting it. You might even be wondering how long it will take you to get the repayment made. Well, you do not need to worry about all this. We provide a boat loan calculator to help you get the hang of this.

Our boat loan calculator is a tool that allows you to calculate how much you would need to repay over time. This ensures that you can determine if you can afford to take the loan. All you need to do is input the relevant information into our tool, and you can then calculate your future obligation under the agreement.

Boat Loans FAQ

In case you have got a question on boat loans, here are some answers to the frequently asked questions on boat loans.

What Age Must You Be to Get a Boat Loan?

To get a boat loan in Australia, you need to be aged at least 18 years. This is thanks to the relevant provision under the ASIC regulations. In a case where you are under 18, you will need your parent or guardian aged over 18 to get the loan on your behalf.

Can I Get A Boat Loan for All My Boats?

Yes, you can get a boat loan for more than one boat. You can even get a boat loan for a wide variety of boat options. All you need to do is satisfy all the requirements highlighted by the lender. Then, you can receive the loan amount.

How Much Can I Get a Loan?

You can get as much as the total cost of the purchase price of the boat. Typically, this will sometimes depend on the lender that offers the loan. This is because, in some cases, the lender may request that you discharge a particular percentage of the loan amount.

If you have any questions about our boat loan offering, you can reach out to us today. We are available to respond to all your requests and look forward to you reaching out.