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Compare Boat Loans & Rates in Australia

  • See your best boat loan rates from multiple lenders at once
  • No credit score impact

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Best boat loan interest rate comparison

Compare some of the best boat loans in Australia. We display all boat loans on our database and we’re not paid by lenders if you click through to their website. The table is sorted by lowest interest rate. Use the filters to search for your best boat loan options. Read the comparison rate warning and other important information.

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Rates updated 02 December 2024

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Why compare boat loans with Money

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30+ Australian lenders to choose from

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Personalised rates

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No credit score impact

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Boat financing in Australia

Owning a boat can be a lifestyle game changer. Weekends and holidays on the water. Family time, or (whisper it) fishing with mates time.

Boats are a lot of things. But they are not cheap. Analysis by Money.com.au shows the average amount requested for a boat loan is $48,363. The average increases to $54,996 for brand new boats.

Interest and fees can quickly inflate the cost. But you can minimise this finance 'swell' by getting the cheapest boat loan you qualify for.

Let me show you how.

How does a boat loan work?

A boat loan is a type of personal loan you can use to buy a boat or other vessel. Most lenders in Australia will offer some kind of finance for boats.

There are even lenders who specialise in lending for different kinds of marine vessels.

But the type of boat finance you get matters. See, boat finance can be either secured or unsecured.

Getting secured finance for your boat will usually be cheaper. Here’s why:

Secured vs unsecured boat loans

Secured boat loan

  • The boat you buy acts as ‘collateral’ to secure the loan
  • This reduces the risk for lenders so they offer lower interest rates
  • You can also borrow a higher amount
  • And you can sometimes get a loan with a longer term
  • If you can’t repay your loan, the lender can repossess the boat

Unsecured boat loan

  • With an unsecured loan, your boat can’t be repossessed
  • You’ll generally pay a higher interest rate
  • You may not be able to borrow as much
  • The lender may only lend the money for a relatively short term
  • You’re not limited to using the funds to cover the cost of the boat itself

What can you get with a boat loan?

Here’s what you can typically get with a boat loan in Australia:

  • Borrow up to $100,000 (some lenders will give higher amounts)
  • Boat loan terms from 1-7 years
  • Finance a new or used boat
  • Weekly, fortnightly or monthly repayment options
  • Fixed or variable interest rates available
  • No deposit required
  • Interest rate tailored to you

What’s the cheapest interest rate for a boat loan?

Boat loan interest rates can start from around 6-7% per year. But for bad credit borrowers, rates can be much higher.

See, your interest rate will depend on your profile as a borrower. Lenders look at factors like your credit score, income, employment situation and whether you own your own home.

The age of the boat could also have an impact on your interest rate.

The common factor is risk: lower risk means a lower interest rate. Securing a low interest can significantly reduce the cost of financing a boat.

How do I compare boat loans?

Finding the best boat loan deal means comparing lots of options. Money will do the heavy lifting for you (particularly to weed out the loans you definitely will not qualify for).

But here’s a summary of the key factors to look at when comparing your boat finance options:

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Compare the interest rate

Interest will be the biggest cost of your boat loan. But ultimately the boat loan with the lowest advertised interest rate isn’t always the cheapest. Your actual interest rate could be a lot higher than the rate a lender advertises on its website. This is why getting personalised quotes from multiple lenders.

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Compare fees

I always recommend looking at interest rates combined with fees. This is what comparison rates are for. Be wary of loans with a comparison rate that’s much higher than the interest rate. The difference will be fees. Boat loans can come with establishment fees, monthly or annual fees and early termination fees. Make sure you know how much you’ll pay by checking the boat loan documents before you sign up.

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Look for a suitable loan term

This is usually up to seven years, but our data shows almost all borrowers choose five years as a term for their boat loan. If a longer term suits, some specialist boat finance providers may offer longer terms, up to 10 years. Just be aware that a longer term will mean you pay more in interest overall. Try to choose a shorter term if you can, bearing in mind that the regular repayments will be higher.

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Shop loan features that offer flexibility

Some boat loans offer the flexibility to repay the loan early and save on interest. For example, some allow fee-free early repayment. Others may allow you to borrow more than 100% of the boat’s value so you can also buy boating equipment.

Are you eligible for a boat loan?

Looking at the basics, you can generally qualify for a boat loan in Australia if you’re:

  • 18 years of age or older; and
  • an Australian citizen or permanent resident; and
  • employed, with a regular source of income that you can demonstrate.

Lenders will also take a close look at your credit history and finances.

How to apply for a boat loan

1

Compare as many lenders as possible.

2

Use a boat loan calculator to work out which loan is best based on overall cost.

3

Apply for loan pre-approval with your chosen lender.

4

Supply any supporting documents requested (pay slips, bank statements etc.).

5

Based on your pre-approved finance amount, it's time to go boat shopping!

6

Give the lender details about the vessel you want to buy.

7

After the final assessment, the lender will fund the loan (usually by transferring the funds directly to the boat seller).

What do lenders look for when you apply for a boat loan?

  • Do you have a regular income?
  • What's your employment history like?
  • What are your regular expenses?
  • Do you have other loans and debts (e.g. credit cards)
  • Do you own other assets?
  • Do you have dependents?
  • How long have you been living at your current address? (The longer the better)

What documents will I need to supply to get a boat loan?

When applying for a boat loan, you may need to provide the following documents and information:

  • Proof of identity e.g. passport or driver licence
  • Proof of income e.g. payslips, bank statements
  • Statement for any other loans or credit cards you have

There’s a different loan type designed for self-employed borrowers who can’t provide payslips

If you’re using a boat as security, you may also need to provide details about the vessel.

How lenders view credit history when you apply for a boat loan

Credit history affect motorcycle finance

Lenders are looking for evidence that you've been able to manage credit well in the past. Ideally they want an extensive and blemish-free credit history.

That usually means a better chance of approval and a lower interest rate. Doing a free credit score check can be a good way of seeing how healthy your credit history is before you apply.

Bad credit boat loans: can I get one?

This will depend on the details in your credit report and the lender’s risk appetite. But it is generally possible.

Some lenders even specialise in offering bad credit personal loans, including ones that can be used to finance a boat.

On the other hand, most banks and credit unions will not lend to borrowers with a bad credit score.

If you decide to apply for a bad credit boat loan, be prepared for the higher interest rates that are usually charged.

What sort of boat can I afford to buy?

To work this out, look at all your current expenses. This includes the likes of your mortgage, rent, childcare, car and any other credit repayments you have. Also consider likely future expenses.

And make sure you have a comfortable buffer for unexpected costs.

Whatever you have left over will give you an indication of how much you will be able to afford in boat finance repayments.

Use our boat loan calculator to work out what different loan amounts will mean for your regular repayments.

Can I use a boat loan for equipment and other expenses?

Secured boat loans usually only allow you to borrow the purchase price of the boat itself. Unsecured boat loans can generally be used to fund your boat purchase and anything else you might need. When applying, consider what extra costs you might need help covering:
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Boat maintenance

A rule of thumb is that maintenance costs up to 10% of the boat’s value per year.

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Safety equipment

You’ll need a personal flotation device for each passenger, flares and other safety equipment.

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Boating equipment

You might want fishing gear, watersports equipment or other boating equipment to use with your boat.

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Other ongoing costs

Including fuel, insurance and mooring costs if you can’t keep the boat parked at your home.

The most important factor when working out how much you need to borrow is your regular repayments.

But don’t get too excited just because you can afford the regular repayment. Look at the total cost of the boat finance too, so you know exactly what you’re committing to.

Ready to compare boat loans?

Get your best offers from multiple lenders. There's no obligation and checking your rates won't impact your credit score.

Personal loan guides & resources

Not sure about the next steps? Our guides and resources can help.

FAQs about boat loans

Different lenders have different risk tolerances, but generally the higher your credit score the more likely you will be to be approved for a boat loan.

Credit scores in the good, very good and excellent range are normally what most lenders are looking for.

But there are lenders who specialise in bad credit boat loans, so you can still get a boat loan outside of the high credit scores.

If you currently have a low credit score but make your repayments consistently, you may be able to refinance the loan to a lower rate down the track when your score has improved.

Learn about the process of refinancing a loan.

With a secured boat loan, lenders will look at the value of the boat at the start and at the end of the loan term.

The best interest rates can often be found on new boats. Because they will likely have held onto more of their value come the end of the loan term.

This doesn't mean you can't get a loan for a used boat. But you will likely have a higher interest rate

Because either won't be able to use the boat as security, or it will be seen as a higher risk loan.

Boat finance (or marine finance) can usually be used for different kinds of water vessels, including speedboats, yachts, fishing boats, houseboats and jet skis.

In most cases no. Many lenders offer unsecured boat loans but these may have higher interest rates and lower maximum loan limits than secured boat loans.

Each lender has different credit criteria and lending policies and the amount they lend to you will depend on their assessment of your ability to afford repayments.

Maximum loan limits for boat loans can be up to $200,000 or more.

If you meet the lender's eligibility criteria, getting a boat loan can often be a quick and straightforward process.

Many lenders allow you to apply online and, if you're approved, the loan funds can be paid to you within days, or even the same day in some cases.

Checking that you are eligible for the loan and are in a strong position to apply (for example, you have a good credit score and a reliable income) can help make the process of getting a boat loan faster and easier.

A boat is a big purchase, whether you are buying a yacht, fishing boat, Jet Ski or other watercraft it can set you back tens of thousands of dollars.

A personal loan could be one way to get on the water faster.

But it will work out more expensive than paying for the boat using your savings.

Shaun McGowan is the founder of Money.com.au. He's determined to help people and businesses pay as little as possible for financial products, through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.

Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.

Important information

Unless otherwise stated, personal loan comparison rates are calculated based on a loan amount of $30,000 repaid over a 5-year term. The comparison rates only apply to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.

General information only The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any personal loan product is suitable for you and seek independent financial advice if necessary.

We are not providing you with a recommendation or suggestion about a particular personal loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.

What products, features and information are shown While we make every effort to ensure all personal loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.

Our product comparisons may not compare all personal loan features and attributes relevant to you. Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.

How personal loans are sorted and filtered by default Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially, by default personal loans are sorted by:

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  • Lowest loan interest rate, then;
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  • Lowest establishment fee, then;
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  • Lowest ongoing fee, then;
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  • Provider name (A-Z)

Some personal loan products listed in our tables are available through a broker. These are the products with an option to ‘Check Eligibility on Money.com.au’. Brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances. Brokers are not authorised by Money's Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Brokers can make recommendations about loan products that may suit your objectives, financial situation and needs.

Our tables feature all personal loans available from lenders on our database that match the search criteria selected. Lenders do not pay to feature in our tables, nor do we earn commission if you click to visit a lender’s website. The order of the products in the table is not influenced by any commercial arrangements.

If you get a personal loan as a result of visiting this page, we may earn a commission.

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Money Pty Ltd (trading as Money) (ABN 42 626 094 773) Australian Credit Licence 528698 provides information about credit products. Money does not compare all products or issuers available in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product. We may receive a commission when you apply for a home loan as a result of outbound links on this website.

This material has been prepared by Money Pty Limited (ABN 40 664 954 536) (Money, ‘us’ or ‘we’). Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C). The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Money, any of their related body corporates or any other person. To the maximum extent possible, 62C, Money, their related body corporates or any other person do not accept any liability for any statement in this material.

The information on this website is intended to be general in nature and has been prepared without considering your objectives, financial situation or needs. You should read the relevant disclosure statements or other offer documents prior to making a decision about a credit product and seek independent financial advice. Whilst Money.com.au endeavours to ensure the accuracy of the information provided on this website, no responsibility is accepted by us for any errors, omissions or any inaccurate information on this website.

Interest rates, fees and charges are subject to change without notice. Before acting on any information, you should confirm the interest rates, fees, charges and product information with the provider. For clarity, where we have used the terms “lowest” or “best” these relate solely to the rates of interest offered by the provider and not on any other factor. The application of these terms to a particular product is subject to change without notice if the provider changes their rates.

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Assumptions:

  • The calculations do not account for changes in interest rates or other market conditions that may occur.
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