Is there anything more disappointing than having dreams and plans quashed even before they have a chance to materialise? When those plans include buying that dream boat, or any boat, the situation around interest rates and rising costs may present the possibility of those plans not being realised. But that doesn’t necessarily have to be the reality.
Plans to purchase a boat may have been hatched over quite a long time. Many boat owners start planning to upgrade or buy that first boat quite some time ahead of the purchase. Checking out new models, forming their ideas around what activities they will engage in and possibly waiting for a certain time of their life to proceed.
Many boat buying plans may have been commenced when interest rates were at record lows. The RBA slashed the cash rate in early 2020 as part of monetary policy to support the economy during the pandemic. That resulted in extremely low interest rates in many lending sectors. This situation was maintained through 2021 with the RBA Governor Philip Lowe often saying it did not expect rate rises until 2023 or 2024. There is likely to be many that made plans to buy a boat with finance based on those expectations.
But the reality is that inflation started soaring and the RBA rate rises started much earlier than expected. The first rise happening in May 2023 with further rises each month since. With those cash rate increases, lending rates have also seen rises. Rises which, for those with buying plans yet to executed, could mean the reality of boat ownership slipping away with the outgoing tide.
But that does not necessarily have to be the case. Buyers planning to buy a new boat with interest rates rising can engage with marine finance experts, Jade Boat Loans, to achieve cheaper boat loans. Don’t scuttle those boat-owning dreams before having the conversation with our consultants and considering what could be possible.
Boat Finance Interest Rates
There are a number of key points that should be noted in regard to interest rates on boat loans. The rates applied by different lenders – banks, finance companies etc, will vary. This is because of the individual business guidelines and can include their exposure to the marine sector and/or their interest in being competitive in that lending area.
As rates do vary, as can clearly be seen in our Compare Interest Rates table it can be highly beneficial to be able to cover off on as many lenders as possible to source the cheapest rate. If you’re wondering exactly how much a seemingly small difference in an interest rate may mean to the boat loan, use the chart as a loan calculator. Enter the amount required for the loan and the repayment estimates for each lender at that rate will be displayed. This is only a guide, but it does demonstrate how those small increments can represent significant differences in repayments and the overall costs of the loan and ultimately the boat.
As we are accredited with many lenders, we can do that covering off for buyers quickly, efficiently and professionally. With further rate rises by the RBA imminent, sourcing the cheapest interest rate boat finance becomes even more relevant and important.
Another factor to note is the difference between fixed and variable interest rate boat loans. With our Secured Boat Loans we have a fixed interest rate. That means fixed and unchanged for the entire finance term, regardless of lender and RBA interest rates changes.
The same may not occur with a variable interest rate loan. These are subject to rate changes. Some lenders may offer a Personal Loan for boats which has a variable interest rate.
There are also variations in the interest rate which will be offered to different boat loan applicants. The rates displayed by ourselves and lenders in general will be the lowest rate available on new boats and to applicants that have a good credit score. When assessing boat loan applications, lenders review the applicant’s credit profile. If not seen as highly creditworthy, a higher rate may be offered.
Loan applicants can review their personal credit profile by accessing a copy of the credit report and repairing any issues where possible. Information on this can be accessed at Moneysmart.
How We Assist Boat Buyers Achieve their Dreams
With that information on interest rates now in the knowledge bank, how exactly can Jade Boat Loans assist buyers with cheaper boat finance? That is achieved in a number ways including:-
- Accreditation with multiple lenders for immediate access to the cheapest interest rates available in marine finance at the time of application.
- Expert negotiating skills and extensive bargaining power to negotiate the cheapest rates with our lender base.
- Professionally and individually structuring loans in regard to loan term and conditions to achieve the target finance repayments.
- Saving time so loans can be arranged faster and possibly prior to further rate rises.
- Saving the hassle of buyers having to contact many lenders to receive boat loan quotes. A process which may end up being just too much and given up on and hence, sinking the boat ownership dreams.
So before you sink those dreams, speak with us about how we may be able to turn them into reality.
Contact Jade Boat Loans on 1300 000 003 for cheaper interest rates on boat finance.
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 MISPRESENTED DATA AND DETAILS HEREIN.