Buyers can compare marine finance lenders to see which lender offers best boat loan rates by using finance broker services to save time browsing the market. Finding the lowest possible rates is typically a high priority for buyers requiring financing. Even more so at the moment after one recent Reserve Bank (RBA) cash rate rise already this year, another possible shortly, and the Middle East conflict increasing the prospects of further rate increases from the RBA.
The consumer credit market is extremely extensive and boat loan interest rates vary with the type of loan, the lender, the vessel being financed and with the financials and credit score of the borrower. In addition to comparing the interest rate, buyers should also compare the features of individual credit products to ensure what is on offer suits their purchase requirements.
We provide a summary of what to consider when comparing loans for boats and further assist buyers by doing the hard work and sourcing their most suitable lender, loan and rate.
Compare Marine Finance Lenders – Loans
There are many lenders offering loans for boats – banks, finance companies and specialist marine finance non-bank lenders. Loans can be sourced directly with a lender, often through the boat dealer and through brokers. If considering dealer finance, buyers should look at the dealer’s credit partner. Brokers provide access to many lenders, depending on their accreditations.
The most popular loan categories for boats are Secured Boat Loans and Unsecured Personal Loans. Most lenders will offer both secured and unsecured options, with varying features, lending limits, and approval criteria for their specific products. A generic ‘personal loan’, either secured or unsecured, may be offered by a lender to cover many categories of consumer goods, including boats.
Secured loans use the vessel as loan collateral and is the popular choice for new boat buyers and buyers of good quality, recent model used vessels. Unsecured loans are available for older boats that do not meet collateral requirements and for buyers purchasing into a share-boat arrangement where the boat is not available as loan security.
When comparing loans from different lenders what should buyers look for?
Does the lender offer loans for the amount you require? Some boat prices may exceed the $20,000 limit of some lenders on some general personal loan products.
Is the lender offering a repayment term that suits you? Not all lenders will be open to negotiating on how long they will allow borrowers to repay their loan.
Do you, and your boat, meet the approval criteria? Check fine print to ensure there are no special conditions that would exclude you or the vessel you are considering buying from getting approved for a loan from that lender.
Will the loan cover the boat and the trailer in the one package? If buying a trailer boat or jet ski with trailer, most buyers will be wanting the one finance deal for the entire purchase. This may not be possible with all lenders.
Does the lender allow the loan to include accessories and extras in addition to the vessel itself? Many buyers will want to add accessories to their purchase, especially when buying from a marine centre which offers additional marine products. It may be life jackets, another set of sails, or upgrading electronics. Check that the lender will allow you to include those costs in the loan.
What is the interest rate and is it fixed or variable? Secured loans are typically offered with a fixed rate but some lenders may have variable rate secured loans. Unsecured loans typically have a variable rate. A variable rate is subject to change, usually when the RBA changes the cash rate and lenders follow.
What are the lenders fees and charges? There will be charges when a new loan is established and some lenders do apply additional fees.
Which lender offers best boat loan rates?
Finding the best rates on the market can be a challenge. Rates vary with lenders, lending products and will fluctuate with the market. When the RBA increases the cash rate, lenders have the choice whether to follow with rises across their lending portfolio or to keep their rates low to remain competitive. Specialists in marine financing can often be more competitive than banks and other lenders that offer a broader, more general loan portfolio.
Many of these specialist non-bank lenders are not directly accessible to buyers but operate only through their selected network of brokers. Brokers are accredited with many brokers and assist buyers by covering the market to find the lowest rate. As a guide, we have a table of rates for new boat loans from a few of our lenders.
Buyers should also be aware that consumer loans are advertised with an advertised rate and a Comparison Rate as an ASIC requirement. The difference is that a Comparison Rate is calculated based on the advertised rate for a specific loan and includes some lender fees and charges.
Tips to Compare Marine Finance Lenders
In comparing the lending market, the key tip is more what not to do rather than what to do. Don’t request multiple quotes for the same loan. This can have a negative impact on your credit score and affect the rate you will be offered. Top tip is to use our brokers to do the comparison work for you and deliver you with your best boat loan offer.
To quickly find out which lender offers best boat loan rates and to compare marine finance lenders, connect with Jade Boat Loans on 1300 000 003.
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.
