Getting a boat loan for any water vessel is now as easy as getting a car loan. Whether you are purchasing a private or commercial boat, there are many financing options you can choose from to suit your needs. However, there are things that need to be considered if you want to score the best financing option available. Below we have listed the best tips for getting a boat loan that you can use on your next application.
Are you ready to apply? Apply now through our online application system.
Build a good credit score
- Just like with other commercial loans, your credit score is a big factor for the approval of your application and the interest rate you’ll get. Make sure to at least have a good credit score in credit band (622-725 in Equifax and 625-699 with Experian). If you have a lower credit score, you might want to consider improving it first before applying for a boat loan.
Find the right type of loan
- Boat loans are either secured or unsecured. You can also opt for a loan with a fixed rate or a variable rate. Your choice should depend on your financial status and the type of boat that you are aiming for.
A secured loan is best if you have assets that you can use as collateral (the boat itself can be the collateral) to the loan. Because of this, lenders will be able to give more competitive rates compared to unsecured loans.
On the other hand, the rates will determine your monthly repayments for the loan. If you want to purchase a luxury boat and intend to use it for a long time, then fixed rate loan is ideal. This way, you have the same low monthly payments for the entire loan term. The fixed rate is also ideal for people with stable income.
If your source of income is unstable, you would want a variable rate for your boat loan. This is also applicable when buying your first boat, which you will trade or sell after some time.
Calculate the monthly payment you can afford
- Always consider your financial capabilities before getting a boat loan. Calculating the monthly boat loan payment that you can afford will help you decide on which boat to purchase and what type of loan to avoid.
- Most lenders have online loan calculators to help you calculate what you can afford.
Get a Pre-Approved Boat Loan
- Did you know that you can get a pre-approved boat loan before you even shop for a boat? It means you can submit your application and get a predetermined loan amount that the lender or bank approves. A pre-approved boat loan is very useful when shopping for a boat because you can opt for the best deal with confidence.
Inquire about any additional cost
- Loans entail several fees such as processing fee, sales tax, registration fee, and title fee. It’s better to ask about them beforehand to avoid being caught off-guard with the expenses. Also, ask about other possible fees in the future like prepayment and late payment penalties.
If you want to find out more information about getting a boat loan, you can visit www.boatfinance.com.au. Our boat finance experts can help determine the best boat loan for you. Get more confidence and certainty when shopping for your dream boat.
Call us today on 1300 880 883 for a fast and easy pre-approved boat loan or click here to apply online.