As the business phase of 2021 gets underway, we thought it timely to bring you an update on the lending scene in regard to boat loans and marine finance with a reminder of our services as marine finance specialists.
Interest rates remain at the same low levels as they achieved through 2020. These conditions have made it ideal timing for many to finally acquire the boat of their dreams. Based on the release of recent economic indicators, analysts expect interest rates to remain at low levels through 2020.
Our loan products remain unchanged but there are changes coming in regard to consumer credit laws which may affect applying for a boat loan.
Changes and expiration dates are looming for many borrowers that requested loan repayment pauses and deferrals as a result of impacts from COVID-19.
Our lenders are working on solutions and options to assist, where possible, borrowers that are continuing to experience financial hardship in relation to repayment of loans.
Jade continues to work with a wide range of both banks and non-bank lenders to deliver tailored marine finance solutions to business and cheap low interest rate boat loans to consumers.
Consumer Credit Regulatory Changes
As we reported in an article late last year, the Federal Government flagged changes to the Consumer Credit Laws to ease the flow of credit into the economy. These changes are due to come into effect from 1 April and may make it easier for some to secure a boat loan. For details on the proposed changes refer to the relevant article in our News and Tips library.
Loan Repayment Deferral Changes
As a measure to assist consumers during the coronavirus pandemic, regulators provided support to the banks and other lenders so they could in turn provide support to borrowers requiring repayment holidays and deferrals.
From 31 March 2021, there will be changes to these regulations and the banks will be changing the way support is provided. We have been advised by our major lenders that as banks will no longer be receiving the capital relief to provide payment deferrals as they did during the pandemic crisis phases.
Due to these changes, the banks will be pursuing establishing solutions which are sustainable to replace deferrals. As a result, new payment deferrals are no longer available through major banks on certain loans. However, assistance to some customers with existing deferrals will be available through to the end of March 2021.
From the end of January, banks will be working with individual customers requiring financial hardship assistance with the objective of establish a sustainable solution. While the COVID-19 relief and assistance was specially developed, most banks and lenders may offer alternatives. Those requiring such assistance can apply over the phone or online with their lender directly.
Marine Lending Scene
As a general overview, both the business and consumer lending market is extensive with multiple banks and non-bank lenders. Not all will provide specific boat loans and will instead offer a general personal loan, either secured or unsecured, depending on individual lender requirements.
As a specialist in marine finance, Jade Boat Loans is accredited with lenders that do offer boat loans. We are accredited with the major and many second tier banks as well as with many non-bank lenders.
Accreditation means that the bank or lender has approved Jade to deal with them to arrange loans on behalf of our customers. Accreditation is not an automatic right but must be arranged and granted individually and is at the discretion of the lender.
Having accreditation with multiple banks and lenders provides Jade Boat Loans with more choices and as such enhanced prospects of achieving the cheapest loan offers for our customers.
Jade Boat Loans is accredited with both banks and non-bank lenders. Our lenders include the major big four Australian banks – ANZ, NAB, CBA and Westpac. Our non-bank lenders include Pepper Money, Prospa, Ondeck, Club Marine, Now Finance, RACV, RACQ, Latitude Financial Services and many others. These are displayed on the home page of our website.
When applying for a secured boat loan with Jade, you do not have to stipulate the lender for your loan. We cover off across the market to source you the best loan quote. However, if you have specific reasons that you want your transactional bank to extend your loan, we can approach them and arrange the boat loan on your behalf.
You do not have to hold an existing account with a bank in order to apply for a loan with that bank. If you hold accounts at a bank, it does not restrict you from Jade arranging a boat loan for you from another bank.
Boat Loans Update
We provide loans for all types of boats, both power and sail, commercial and recreational, new and used with no deposit boat finance is available
If attending a boat show with a view to purchasing, speak with us prior to arrange your pre-approved boat loan.
With consumer credit changes due in coming months and both federal and state budgets due in May, stay connected with us for further updates on the marine lending scene.
Contact Jade Boat Loans on 1300 000 003 to discuss your boat loan requirements.
DISCLAIMER:THE DATA, POLICIES, INFORMATION, CONTENT AND REFERENCES AS PRESENTED IN THIS ARTICLE IS FOR GENERAL PURPOSES ONLY, IS SOURCED FROM RELIABLE SOURCES BUT NO LIABILITY IS ACCEPTED SHOULD THERE BE ERRORS OR MISREPRESENTATIONS OF DETAILS IN THE CONTENT. THIS INFORMATION IS NOT INTENDED AS THE SOLE PURPOSE OF MAKING FINANCIAL DECISIONS. READERS SHOULD REFER TO A FINANCIAL ADVISOR OR ACCOUNTANT IN THE EVENT THAT THEY REQUIRE PROFESSIONAL GUIDANCE AND CONSULTATION ON THEIR INDIVIDUAL FINANCIAL POSITION.