At Boat Loan World, you can find, compare and apply for boat loans, simple as that. Whether it’s a tinnie or trawler, a bass boat or bowrider, you can find the boat finance you need, to buy the boat you want.
Thinking about buying your first boat? Boat Loan World can help you finance it. Wanting to upgrade to a new boat? Boat Loan World could make that happen. Yearning to buy your dream boat? Boat Loan World could make that dream a reality.
So, what do you need to apply for a boat loan? Before you apply for a boat loan, you need to compare the options. You need to know what kind of boat you want to buy, as well as how much it will cost to keep it on the water.
At Boat Loan World, we not only provide you with a great range of boat loans, we also offer easy-to-follow advice on how to find the right boat loan for you. Whether you’re looking for a secured boat or unsecured boat loan, bad credit boat loans or simply the best boat loans Australia has to offer, Boat Loan World is the place to be.
Got questions? Before you compare boat loans, find out all the need-to-know info and tips for buying a boat.
What is a boat loan?
A boat loan is designed to provide finance to people who want to buy a boat, but who do not have the money available to buy it outright. Similar to a car loan, a boat loan is repaid to the lender in regular installments, over a number of years.
When you apply for a boat loan, you can choose the amount you want to borrow, and the length of the loan (also known as the loan term). You will pay interest on the loan, at a rate determined by the lender. To get the best deal on interest, you need to compare the options.
What kind of boat loans are there?
Just like boats, boat loans come in all shapes and sizes. A boat loan can be:
- A secured personal loan designed specifically to finance a boat
- A general secured loan, where the boat purchased is used as a guarantee
- An unsecured personal loan
While each option will suit a different type of buyer, you may find a boat loan secured against your boat is cheaper. As the loan is secured against collateral, this type of loan is less of a risk to the lender, making it easier to get approved for, and more cost-effective.
Should you opt for a fixed or variable rate boat loan?
In terms of boat loan options, there are fixed rate boat loans and variable rate boat loans. With a fixed rate boat loan, the interest rate applied to the loan will remain the same throughout the length of the loan. With a variable rate boat loan, the interest rate may fluctuate.
Choosing a fixed rate boat loan could mean you save money if interest rates rise over the term of your loan. Having a fixed rate boat loan can also make budgeting easier, as you always know how much your repayments will be.
Opting for a variable rate boat loan could allow you to save on interest if rates fall, but you may pay out more if rates increase. With a variable rate boat loan, the lender may allow you to pay off the loan early, or make extra repayments. Bear in mind, fees may apply.
What are the best boat loans?
As there are so many Aussie boat loans out there, working out which one is best can be difficult. While there may not be one boat loan that is ‘best’, there will be a boat loan that is best for you. To find it, you need to know exactly what to look for, and then compare the options.
How do you compare boat loans?
When you compare boat loans, there are various factors to consider. First you need to think about how much you need to borrow. Some lenders stipulate minimum and maximum boat loan amounts. Then, you need to work out how much you can afford to pay back. That means using a boat loan calculator to work out a monthly repayment schedule that fits your budget.
With that information, you can start to compare boat loans. Look at how much each loan charges in fees, and how much you will pay in interest. Try to choose the boat loan with the lowest interest, over the shortest period of time. Also look out for any features you may find handy, such as the option to make extra repayments, or pay off the loan early.
How much can you borrow on a boat loan?
How much you can borrow on a boat loan depends on how much you can afford – and how much the lender is willing to provide. The lender will consider your credit rating and income, to decide how much to lend you. At the same time, you need to be aware of how much you can afford to pay back, while avoiding financial stress.
Can I get my finance approved before purchasing?
Getting boat finance approved before purchasing can be an excellent idea. Knowing how much you are approved to borrow can make searching for boats easier. You can also negotiate prices with the confidence of knowing how much bargaining power you have.
Before you get preapproval for a boat loan, you will usually have to let the lender know what type of vessel you want to buy. The lender may also need to approve the supplier, and assess the total amount of finance against the current market value of the boat.
What are my chances of getting approved?
When you apply for a boat loan, the lender will assess a number of factors. This may include whether you own your own home, how long you’ve been employed in your current job, and how much you earn.
Assessing your boat loan application will also usually involve evaluating your credit rating. If you have bad credit, that doesn’t mean you can’t get approved for a boat loan. But, you may need to look into bad credit boat loans instead.