Australia's Money Matchmaker™
Compare boat loan rates in 60 seconds
- Comparison rates from 4.99% p.a*
- No credit score impact
- Offers across 60 Australian lenders
Why Money Matchmaker™
1
You're in Control
No obligations, just the facts, make an informed choice
2
Save Time
Get matched with real loan offers from up 60 lenders
3
It's Personal
The rates are based on who you are and where you are at in life
“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
Boat loans in Australia
Written by
Shaun McGowanA boat loan is essentially a secured personal loan product used to purchase a boat, Jet Ski, or other watercraft.
And that means...
- Lower, fixed rates
- Flexible terms and repayment options
- No deposit required
- Simple and quick approvals
How do I compare boat loans?
Take the time to compare all your options and make sure you can comfortably afford the repayments over the lifetime of the loan.
Fees
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
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.
Loan term
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.
What lenders are looking for
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.
How lenders view credit history
Here is how your credit history can influence your ability to be approved.
Find the best deal on boat loans
FIND YOUR BOAT LOANSecured vs unsecured boat loans
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.
Are you eligible?
You can generally qualify and apply 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
If you meet the basic eligibility for a boat loan, you will then need to compare lenders and assess their individual approval criteria.
What documents will I need to supply?
During the application process 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
- Details of any current debts or other loans
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.
Here are the most popular questions people are asking about boat loans
Do I need to use my boat as security to get a boat loan?
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.
How much can I borrow?
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.
How long can I borrow the money for?
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.
How much will I need to borrow?
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:
- Boat maintenance: a rule of thumb is that maintenance costs up to 10% of the boat’s value per year.
- Safety equipment: you’ll need a personal flotation device for each passenger, an anchor, and other safety equipment. This can cost anything from $500 to $5,000.
- Boating equipment: you might want fishing gear, watersports equipment or other boating equipment to use with your boat. This can cost anywhere from $100 to $10,000+. The most important factor to consider when working out how much you need to borrow is your regular repayments.
You should always work out your regular and total repayment amount before borrowing and be absolutely certain that you can afford them easily.
Can I get a boat loan if I have bad credit?
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.
Meet Money Matchmaker™
"Hey I’m Money Matchmaker™, I have a team of wizards making me super smart. When you take my quiz, I use your answers to check against all our lenders at once. I’m harmless, I don’t impact your credit score and I'll use the information to help my team of loan experts find you all the loans you're eligible for."
The right boat loan can save you $1,000s
FIND YOUR CAR LOAN
About the Author
Shaun
McGowan
Shaun McGowan
Shaun is the founder of Money.com.au and is determined to help people pay as little as possible for financial products. Through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.
*Information about comparison rates Comparison rates are designed to allow borrowers to understand the true cost of a loan by taking into account fees and charges, the loan amount and the term of the loan. The comparison rate is based on an unsecured fixed rate personal loan of $10,000 over 3 years. WARNING: Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
