Boat Loans for Personal Use
Looking to get out on the water? Let Aussie Boat Loans take the hassle out of obtaining your boat finance, whether you’re buying from a boat dealership or a private seller.
As credit representatives of a reputable finance company, we can tailor a loan package ideal to your individual situation with competitive interest rates.
There are two types of boat loans available for personal use; Secured loan or unsecured loan (see descriptions below). Aussie Boat Loans predominantly organise secured finance for your purchase, which can then be repaid over a period of up to 5 years.
Try our easy to use boat finance calculator to get an indicative look at what your repayments will be for a range of the months you select. You can make payments weekly, fortnightly or monthly by internet banking, direct debit, direct-payroll deductions, BPAY, or other payment methods where applicable.
Our video section can also help you to get some important information related to watercrafts and boat finance.
For added peace of mind, you can also add marine insurance to your loan. We can assist with comprehensive insurance, boat warranty, security shortfall (Gap) and loan protection insurance.
Boat Finance Interest
We provide boat loans with a fixed interest rate, which means the interest is calculated on the unpaid balance daily, just like a home loan, and you can rest assured that you'll have the same interest rate for the life of the loan. Extra or additional payments will obviously reduce the outstanding balance and therefore reduce the interest charges. This can ultimately shorten the loan term and reduce the overall cost.
Balloon Payments
Balloon payments or residual options are also available. A balloon payment is essentially a lump sum that you pay at the end of the loan. By setting a balloon payment for the end of the term you can reduce your monthly payments to satisfy your budget. At the end of the term, you can either pay out the full amount, upgrade your boat or re-finance the balloon amount and continue paying off the asset over a new loan period (subject to approval conditions at that time).
Secured Boat Loans
This is a type of loan that uses the purchased boat, marine vessel or another asset as collateral or security for the loan so that if you can't make your agreed repayments, your lender has the right to take possession of the secured asset and sell it to cover the remaining cost of the loan. This is the most common form of boat loan provided in Australia.
Secured loans have a lower interest rate than unsecured loans, and have a minimum loan amount of $5,000. Some other conditions include:
- The vessel must be 8 years old or less
- Fixed Interest Rate
- 3 - 5 year loan term
Unsecured Boat Loans
This is a very versatile loan, as it can be used for nearly any purpose including debt consolidation, for a holiday, wedding, or even boats that do not qualify for the secured loans option. There is no security required for this type of loan, and as a result, interest rates are higher than secured loans as they are riskier for the lender.
***Please note that Aussie Boat Loans only provide secured loans, with a minimum loan amount of $5,000.
Contact us today to arrange a marine finance package for your next boat or apply online!
