Boat Finance

If buying a boat for fun, sport and recreation a great boat loan will enhance your boating pleasure. If you’re a marine business operator, securing a great marine finance package may be essential to achieving your financial objectives and business sustainability.


Boat Loan Types

The range of boat finance products available for individuals differ from the products available to business.

Personal Boat Loans

  • Secured Boat Loan: this is the most popular type of loan for most individuals purchasing a boat. The lender uses the boat as security against the loan. The interest rate is usually fixed, the term of the loan is fixed as are the monthly repayments. Additional payments are allowed and if you choose to finalise the loan early, only minimal break fees usually apply.
  • Unsecured Personal Loan: if you choose not to offer security or the lender does not accept the boat you are purchasing as an acceptable form of security, you may be offered an Unsecured Personal Loan. This is a general form of personal loan. The interest rate may be fixed or variable. The term of the loan is fixed as are the monthly repayments. You are permitted to make additional payments and if you pay out the loan early, with variable interest rate loans no break fees usually apply and for fixed interest rate loans only minimal break fees apply.

Marine Finance Products

For marine businesses, a number of commercial marine finance products are available:

  • Marine Chattel Mortgage
  • Commercial Hire Purchase (CHP) for Marine Purposes
  • Boat Leasing

These products have varying features in regard to treatment of GST, tax deductibility, balance sheet approach and accounting methods. It is advisable to discuss with your accountant which is most suited to your business to ensure you realise the greatest benefits and ROI for your boat purchase.

Finding the Best Boat Loan

  • To find the best loan for your boat purchase, it is always advisable to do your homework and research the options before you start making loan applications. Making multiple loan applications may reflect negatively on your credit score.
  • While heading straight to your bank or a well-known finance company may appear the way to go, you may find a better boat loan by seeking out lenders that specialise in boat loans and marine finance.
  • Some banks and finance companies offer personal loans for boats and some offer marine finance packages but usually at a very basic level. Where a lender does not have a specific boat loan category, you may be offered a more generic loan type which may be at a higher rate.
  • An attractive option for both individuals and businesses is to source a professional finance broker that specialises in marine finance. This expertise equips them with the right contacts from their large panel of banks and lenders, to source you the best loan to meet your specific requirements. Brokers are available to both individuals and businesses, you don’t need a referral and usually they don’t have minimum or maximum limits on how much funding they can arrange for clients.

If you’re interested in a rough idea of repayments for a particular boat you’re interested in, head to our Boat Finance Calculator page for information on how you can source an estimate.

We know people who are professionals in sourcing boat loans and marine finance. If you would like to make contact with these people, please contact us and we will pass on their information.