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To use the boat loan calculator, you’ll need to enter some details about your loan. These are explained below:
Once you have filled in your boat loan details, simply click ‘See My Repayments’ to view an estimated repayment amount. You can then select Monthly, Fortnightly, or Weekly repayments to see what your repayment amount will be at various frequencies.
The boat loan calculator uses what is called an amortisation calculation. Amortisation is best understood as the way you will gradually repay your loan amount over time.
When you make your first repayment on your boat loan, a set portion of the amount will go toward repaying the interest. As you continue to meet your repayments, the portion of interest paid on each amount will decrease, and the portion paid on your principal amount will increase.
The simple formula for calculating your boat loan repayments is: Loan Amount / Discount Factor
The most difficult part to do yourself is in finding the discount factor, which is calculated by dividing the interest rate of your loan by the number of payments per year (12 for monthly, 26 for fortnightly, or 52 for weekly) to first obtain the Periodic Interest Rate.
The formula is expressed as: (((1 + i) ^n) - 1) / (i (1 + i)^n)
|Boat loan amount||5% interest||7.5% interest||10% interest|
In the example below, we’ll look at an individual wanting to purchase a $50,000 boat, and they agree to a 7.5% fixed interest rate and a repayment term of 5 years.
If you want to quickly calculate your repayments without creating your own spreadsheet with the above calculations, you can use our free boat loan calculator.
To qualify for a boat loan in Australia, you will need to be over the age of 18, a permanent resident or citizen of Australia, able to verify that you earn a steady income, and most importantly prove your ability to repay the boat loan amount.
Secured boat loans will generally use fixed interest rates offered between 5.00% and 29.90%. You can get the best interest rates on a boat loan by purchasing the vehicle from a franchise or dealership, however you are still able to obtain reasonably low rates if you wish to purchase the vehicle through a private sale.
Yes, you can get a boat loan with bad credit. Bad Credit Boat Loans are offered by non-bank lenders and will have higher interest rates than standard boat loans. You will still need to prove your ability to meet repayments, and it is very likely that you will be asked to provide extensive supporting documentation to the lender.
The average amount for a boat loan in Australia is $30,000. Most lenders will approve a secured boat loan application for anywhere between $5,000 and $100,000. The amount you are able to gain approval for will depend on your personal borrowing profile, which will be assessed according to your income and credit rating.