Integral to securing the most affordable finance is finding the best rates. The interest rate determines the repayments, total interest payable, which ultimately determines how much a buyer is actually paying for their vessel. But finding the best rates can be a challenge in the extensive consumer credit sector. To compare boat loan interest rates buyers can consider the type of rate, loan conditions, get repayment estimates with a finance calculator, and use a broker.
While rates do vary with different lenders, so do the features and conditions of specific finance products. The most suitable option may depend as much on any terms and conditions applied by the lender as the rate itself. Finance calculators are readily available to assist buyers with the process and they can opt to engage a marine finance broker to handle their finance requirements and find the best rates.
To assist buyers comparing the rate market, our experts provide guidance as to what to focus on and consider.
Compare Boat Loan Interest Rates with Different Lenders
When requiring marine finance, one of the first things that buyers will notice is that there are varying types of credit as well as rates across the market. The consumer credit market is extensive with finance companies, many marine dealers and banks as well as brokers offering loans to finance marine vessels. The consumer lending market is regulated by ASIC. The Commission has set guidelines that responsible lenders must adhere to when approving consumer loan applications. But these regulations do not determine the actual features of the loan products. As part of the comparison process, astute buyers should review the specifics of the credit products to ensure that a specific lender and/or product is suitable for them.
As a general guide, both secured and unsecured credit products may be used to finance marine vessels. These products can suit all types of watercraft – power and sail, small and large, including PWCs and jet skis. A secured product, such as our Secured Boat Loan, uses the vessel as the security, ie collateral, for the loan. With that security in place, lenders offer better rates on secured rather than unsecured finance. To be eligible for secured credit the vessel must accepted as suitable collateral. New vessels are generally accepted but used boats will need to be assessed by lenders.
The alternative to secured finance is an Unsecured Personal Loan. This type of credit can be used to finance many personal expenses and does not require the goods being financed to be offered as finance collateral. This may suit much older boats and buyers purchasing boating syndication or boat-share. Unsecured finance can offer flexible terms and conditions. But without collateral, the rate will be higher than for a secured product.
Other aspects to look out for when comparing the credit products from different lenders are their credit limits – minimums and maximums, the terms they offer, and their fees and charges. The terms can be extremely relevant when consider with the rate as it can determine the total amount of interest paid on the finance. This then determines how much the buyer is actually paying for their vessel.
Comparing Variable and Fixed Interest Rate Boat Loans
When comparing credit products, buyers may notice that some offer a fixed rate and some a variable rate. A fixed rate remains the same through the full finance term while a variable rate is subject to change when the lender adjusts their lending rates. When a variable rate is changed, up or down, the monthly repayment changes. These changes may be in response to market fluctuations which usually occur when the RBA announces cash rate changes.
Our secured marine finance attracts a fixed rate. Personal loans from some lenders can be at a fixed or a variable rate. Whether fixed or variable, the rate offered by a specific lender to a specific borrower can vary with new and used vessels and with the credit profile and financials of the borrower. Lenders display their best current rate for applicants that have a good credit profile. The rate may also be determined by the loan amount. Making a larger deposit and requiring less finance, may result in a better rate offer.
What are Comparison Rates?
When comparing loans and rates, buyers will see two different rates advertised by lenders. One is the base interest rate and the other is the Comparison Rate. Displaying both rates is a requirement for all lenders in the consumer credit market.
Comparison Rates relate to a specific loan example. It is the rate when calculated for that finance amount over that term and when that lender’s fees and charges are included. The example relating to that Comparison Rate will be detailed with the rate.
Compare Boat Loan Interest Rates with a Finance Calculator
A useful tool when comparing marine finance is a Finance Calculator. This tool provides buyers with an easy DIY way to convert a rate to a repayment estimate for their specific credit requirements. Calculating monthly payment estimates based on the rate for different credit options may give buyers clarification on affordability and allow for comparisons based on their exact finance.
Our calculator is readily available online, free to use, and can also be useful in comparing the affordability of different makes and models based on price and the finance required.
Easily Compare Boat Loan Interest Rates – Use a Broker!
To simplify the entire process of not only comparing the rate market but securing your best rate offer, use our marine finance broker services. We are accredited with many lenders, including the major banks, and can quickly find the most suitable credit product at the best rate, from across a vast lender selection.
To easily compare boat loan interest rates, contact Jade Boat Loans 1300 000 003 to have your best rate found by our experts.
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MISREPRESENTED DATA AND DETAILS HEREIN.
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