“Super quick, I got lots of offers. All I had to do was choose which one! I went with Wisr because they were the cheapest. Thanks” - Angela
A boat loan is essentially a secured personal loan product used to purchase a boat, Jet Ski, or other watercraft.
Take the time to compare all your options and make sure you can comfortably afford the repayments over the lifetime of the loan.
Boat loan fees may include establishment fees, early termination fees, and other charges.
Make sure you know how much you’ll pay by checking the boat loan’s Product Disclosure Statement and comparison rate (a single rate that includes both interest and fees).
Interest rates are the biggest cost of almost any boat loan, so keep an eye out for a low rate if you can find one.
But you should also keep in mind, the loan with the lowest interest rate isn’t always the cheapest - you need to look at fees, loan terms and loan features to accurately compare your options.
Specialist boat loan lenders usually offer longer terms, up to a maximum of 10 years.
Try to choose a loan term that balances repayment affordability with interest and fee savings.
Loan features and flexibility
Different boat loan features may offer flexibility, or make your loan easier to repay.
For example, some allow fee-free early repayments, which could make it easier to pay your boat loan off quickly and save on interest.
Others may allow you to borrow more than 100% of the boat’s value to buy boating equipment.
Lenders love boring, or should we say, consistency!
They love it if you've had the same job forever and have been at the same house since you first left home.
Here's an example of how your employment history can influence your approval.
Here is how your credit history can influence your ability to be approved.
A secured loan uses the boat you purchase as “security”.
In other words, if you default on your payments the lender has the power to repossess the vessel to recoup their losses.
This makes a lender more comfortable with lending you the money.
In return, you’ll usually get longer loan terms, lower interest rates and can borrow more money for your boat.
An unsecured loan means you don’t have to risk your boat as security, but the lender will be more cautious in lending the money.
This usually means higher interest rates and more fees, lower amounts you can borrow and a shorter loan term.
Of course, the main upside to this is that you can use the funds however you want, and borrow more than the price of the boat itself.
If you’re looking for a full package deal, this means you could also use your loan to buy the equipment you need for fishing or water sports.
You can generally qualify and apply for a boat loan in Australia if you’re:
If you meet the basic eligibility for a boat loan, you will then need to compare lenders and assess their individual approval criteria.
During the application process you may need to provide the following documents and information:
If you’re using a boat as security on the loan, you may also need to provide details about the vessel including its age, where you bought it and the type of vessel it is.
Money Tip: Most lenders offer boat loans with terms from one to seven years, with a few specialist lenders offering 10-year terms.
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.
Most lenders offer boat loans with terms from one to seven years, with a few specialist lenders offering 10-year terms. Keep in mind that a longer term may mean lower repayments, but it’ll also mean you pay more interest and fees over the life of the loan.
Secured boat loans usually only allow you to borrow the purchase price of the boat, which means you may not be able to borrow extra funds to buy equipment.
Unsecured boat loans can generally be used to fund your boat purchase and anything else you might need - e.g. boating and safety equipment, paint, or vinyl decals. When applying, consider what extra costs you might need help covering:
You should always work out your regular and total repayment amount before borrowing and be absolutely certain that you can afford them easily.
Most lenders will not offer you a boat loan if you have bad credit so it may be better to apply for a bad credit loan instead.
Get matched with real loan offers from up to 11 lenders, all at once.
We show you the best interest rates and repayments from each lender you match with
The rates are based on who you are and where you are at in life
No obligations, just the facts, make an informed choice
There are no middlemen, marked up pricing or broker fees. (We get paid by the lender)
Just like when you use a dating app or go to a broker, we use your answers to show you real lenders, real rates and actual repayments across all our lenders that you’re eligible for; without any broker fees or marked up interest rates.