How Many Years Can I Finance A Boat For
As stated above, secured boat loans can be found with up to 20-year terms. Boats hold their value for a long time. They depreciate at a slower rate than cars and may even increase in value after ten years if theyre well-maintained. Lenders take this into account when setting the terms and conditions of your loan. Unsecured personal loans are typically five-year terms.
Why Choose An Racq Bank Boat Loan
- RACQ Bank is owned by RACQ membersWe reinvest profits back into our members.
- Our staff are locals just like youWere run by Queenslanders for Queenslanders.
- We have a reputation for integrityRACQ has been serving members for over 117 years.
- You’ll enjoy membership benefitsWeve got discounts to put the wind in your sails.
Navy Federal Credit Union
Navy Federal Credit Union offers loans for new and used boats and personal watercraft, with terms of up to 180 months. Military members with direct deposit may qualify for a rate discount. Service members in all branches of the armed forces, along with their families and household members, are eligible for credit union membership.
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Boat And Marine Vehicle Licensing Rules
Before you try to finance a boat, its essential to understand that some marine vehicles with motors require special licenses to operate. For example, you need a valid Pleasure Craft License to legally pilot any boat with an engine of 10 or more horsepower. You must have the license on you whenever youre driving the vehicle to avoid penalties.
There are certain elements that the boat itself needs as well, including:
- Hull Serial Number The boat must have a serial number on its hull, which proves that it meets Canadas minimum safety standards for construction.
- Registration Any qualifying boat also needs to be registered with the Canadian Register of Vehicles to confirm that its not been stolen or manufactured poorly.
- Trailer Registration According to government regulations, most boat trailers are deemed as motor vehicles, so they have to be registered and licensed too.
- Canadian Compliance Notice This is another way to identify a boats build quality. While boats bought from other countries may not require this notice, they must still comply with Canadas minimum construction standards before being used.
Fallen In Love With A Boat Compared With Auto Loans Financing A Boat Can Be A Much Heftier Investment
Boats can be more expensive than a car, which means loan amounts can be higher and terms can be much longer.
Just how much you pay to finance a boat depends on a number of factors, including the type of boat loan you choose, the loan terms, your down payment and your credit.
Lets take a look at the different types of boat loans, your financing options and how to apply for a boat loan.
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Set Sail With An Racq Bank Boat Loan
Boating is about living life on your terms. Whether you get excited about painting a pre-loved boat a fresh colour, driving straight from the dealership to the water, or pulling out the fishing gear for a long weekend, an RACQ Bank Boat Loan can take you there. Our members enjoy competitive interest rates, and flexible payment options. So cast off with a boat loan that gives you the freedom to sail your way.
Choose the boat loan that best suits your budget and lifestyle.
Boat And Marine Loans From Banks
RBCBoat And Marine Loans
As mentioned, plenty of big financial institutions sell marine vehicle loans in Canada, For example, the Royal Bank of Canada offers financing for boats and RVs with:
- Flexible Payment Options Choose from several payment plans , with no penalties for prepayments.
- Competitive Interest Rates RBC offers competitive interest rates when you finance your boat through one of their affiliated marine dealerships.
- Adjustable Terms & Conditions If youre a qualified applicant, you could be eligible for financing terms as long as 20 years on boats and RVs that are no more than 10 years old.
TDBoat And Marine Loans
TD Canada Trust is another popular bank with its own flexible marine vehicle financing program. They have an expansive network of dealers and offer many benefits, like:
- Long Terms & Extensions Payment terms can last up to 240 months on newer vehicles and youll have the option of extending .
- Additional Financing Available If necessary, TD can also offer you financing for other marine vehicle costs, like warranties, gap insurance, and storage fees.
- Competitive Interest Rates You could qualify for a competitive fixed or variable financing rate for most marine crafts.
- Payment Options Loans can be paid early with a lump sum, penalty-free.
- Payment Breaks If you follow your financing plan responsibly, youre allowed to postpone one payment each year that your marine craft loan is active.
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Bank Of The West Boat Loans
Types of boats financed: Boats must be model year 2001 or newer to be eligible. Bank of the West specifically says that it finances standard or custom power or sailboats, multi-hull boats, pontoon boats, and electric boats. The lender also offers loans for high-performance boats, houseboats, and wood hull boats. However, it does not finance boats that can exceed 99 miles per hour.
Loan amounts available: $10,000 and up for new and used boats, $25,000 and up for live-aboard boats. Loans over $2 million are available.
Watch out for: Credit score requirements. Bank of the West states on its site that it lends only to people with credit scores of 700 or higher.
Boat loans through Bank of the West and its lending division, Essex Credit, are a good option for people planning to get a boat loan of $50,000 or above.
A $10,000 boat loan with Bank of the West would have a starting interest rate of 8.89%, a $15,000 boat loan would start at 8.39%, and a $50,000 loan starts at 4.29%. While their rates for loan amounts over $50,000 are competitive, anyone looking for a smaller loan may find a better rate with LightStream.
It’s worth noting that this lender does have a loan processing fee that could add to your total cost of borrowing. A 10% down payment is also required for loans between $10,000 and $200,000, and percentages increase for higher loan amounts.
starts at 6.30%
Loan amounts available: $100,000 to $2 million
See What Our Members Have To Say
We have been with GTFCU for over thirty years and obviously have not had a reason to change. I am a financial services professional so I am aware of other options and have easy access to them. But GTFCU is fine for mobile banking and small enough that people take personal ownership of resolving any issues that arise. – Tom C.
Enjoy the credit union difference today and discover how low-interest boat loans provide everything you need to stem the tide and sail into your next adventure.
*Annual Percentage Rate
The APR you receive for the subaccounts will be within the range disclosed above and is based on your credit worthiness. Ask the credit union for the rate you qualify to receive.
**Used RVs and boats can be financed for up to 100% of NADA retail value or BUC price guide. Loans cannot exceed the purchase price. Rate based on credit qualifications and other restrictions may apply. Additional rates and terms available. Subject to credit approval.
***New member applicants may not be eligible for unsecured loan applications for a period of 90 days. All unsecured loan applications may require additional review and verification during the application process. No loan applications will be considered until membership applications have been completed and all information including identification verified.
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Factors To Consider When Choosing A Boat And Marine Loan
As fun as it can be to own a boat or other watercraft, its also important to understand that a loan is a significant financial obligation and must be handled responsibly in order to avoid any debt-related problems.
So, prior to applying for any form of boat or marine vehicle financing, there are several factors that you should consider, such as:
The Down Payment One way of receiving good loan conditions and paying down your debt faster is to offer a respectable down payment of 10% 20% of the vehicles total cost. Depending on the asking price, that down payment can be beyond your budget, especially when coupled with your future payments.
The Interest Rate Your interest rate can make your payments more pricey than you were expecting. Remember, the best way to receive an affordable rate is to apply with healthy finances or some collateral. You may also be able to choose a fixed rate or a variable rate .
The Length of Your Loan/Term Larger boat and marine loans are often separated into several terms, so you may be in debt for a number of years. Being unable to afford your installments during that time, for whatever reason, could lead to financial damage, so if the loan terms your lender offers seem too long, you may have to look elsewhere.
Best Commercial Loan: Coastal Financial
Coastal Financial is our top pick for commercial boat loans because it offers a quick application process, fast funding, and finances new and used boats as well as charter boats. The company will also take care of setting up charter management and boat insurance on your behalf.
The lender offers boat loans from $5,000 to $5 million and approvals take less than 24 hours. You can apply online or over the phone.
Once the borrower and vessel are approved for a charter loan, you put the boat in your companys LLC, and you can enter it into a charter program. You can choose how often you want the boat chartered, and when you want to use it, and the company will handle the rest.
Coastal Financial has mostly positive customer reviews with customers appreciating the marine industry knowledge, easy application process, and fast funding times.
Coastal Financial, headquartered in Virginia Beach, Virginia, offers a quick application process and fast funding with some approvals taking less than 24 hours. The company finances new and used boats, as well as charter boats. Coastal also offers refinancing and RV loans.
It offers boat loans from $5,000 to $5 million and approvals take less than 24 hours. You can apply online or over the phone.
Offers boat insurance and charter management
You have to contact the company for borrower requirements
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Best Marine Lending Specialist: Trident Funding
Our choice for the best marine lending specialist is Trident Funding because they offer competitive rates, specialize in custom marine financing, and have been in business since 1996.
Trident has worked with over 40 banks and lenders so you can rate shop to offer the most competitive rates and terms which vary based on the type of vessel, down payment amount, loan type, and borrower qualifications.
They offer fixed- and variable-rate loans and both short- and long-term boat loans up to 25 years. Typically, they approve loans within 48 hours and a down payment of 10 to 20% is standard. They finance new and used boats that are no older than 25 years and only used for recreational purposes.
Trident Funding has positive customer service reviews and a solid industry reputation. Customers raved about the excellent service, timely responses, and marine industry knowledge.
Trident Funding was founded in 1996 by boat enthusiasts for boat enthusiasts with the goal of connecting borrowers to lenders so they can finance their passion. It is the U.S.s largest independently owned boat and yacht loan origination company. Trident also finances RVs and provides marine resources and tips on its website.
Dont finance boats more than 25 years old
Dont finance live-aboard vessels
You usually need a down payment
Boat Loan Rates As Low As
Get ready to hit the high seas with boat loans that have no application fees, flexible repayment terms, and easy online account access. Use our Vessel Loan Checklist to help you during your boat purchasing process.
Thinking of Refinancing Your Boat Loan?
If you already have a boat loan, you can take advantage of great BECU rates when you refinance. Compare loan options with our Loan Comparison tool. For more information on boat loan refinancing, visit a BECU Neighborhood Financial Center.
Use our calculators to figure your boat payments and determine your best loan option.
Calculator How much will my boat payments be?
Calculator Should I use a home equity loan instead of a boat loan?
Earn a Better Rate
We periodically evaluate the credit rating of each member who has a credit card, personal line of credit, personal loan, auto loan, boat loan or RV loan with BECU. If you’ve improved your credit score sufficiently and your account is in good standing, you may earn a better rate . We’ll update your APR and let you know.
Loan Payment Protection Program
The Loan payment protection program provides financial assistance during times of hardship. LPP is an optional benefit offered through BECU.
- Provides minimum monthly payments in case of involuntary job loss, disability or loss of life
- Monthly program cost is based on loan balance and package options
To apply, call us at and ask about getting LPP added to your loan. View the Consumer Loan Payment Protection Contract.
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How We Do Boat Loans
Trident Funding offers a wide variety of boat loan rate programs for boat and yacht buyers. With nearly 30 years of experience, Trident Funding is the most trusted partner for all your boat financing needs.
We offer boat lending options for new and used boat purchases as well as boat refinancing. Our dedicated team of sales representatives guarantees professionalism and competitive rates. With access to specialized programs and experienced lenders, we listen to your needs and find the right solution to finance your boat.
Whether youre looking for a small runabout, a sailing vessel, a sportfish or the finest megayacht, we have the right boat loan program for you. We specialize in boats, thats all we do! If youre purchasing a new boat, used boat, classic boat, or project boat, well help you find the best boat loan lender to meet your needs.
Let us handle the heavy lifting, with help from application submission through closing. Our experienced team of finance professionals will coordinate all elements of closing, including state title, coast guard documentation, insurance, and settlement services. When you apply for a boat loan with Trident Funding, we examine your unique situation to determine which of our trusted boat lending partners can provide the best boat interest rate and term for your boat loan.
- Standard Fixed Rates
How Does Our Boat Loan Calculator Work
The Bankrate boat loan calculator helps borrowers calculate monthly payments for fixed-rate boat loans. Boat loans are installment loans, meaning that you make monthly payments on the principal balance plus interest and fees until the loan is paid back. Since boat loans have fixed rates, the interest rate you pay will never change over the life of the loan. Our calculator shows you the estimated monthly payment for your boat loan, based on the loan amount, term length and interest rate you enter.
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How Much Does It Cost To Own A Boat In Canada
Watercraft come in all shapes, models, and prices, so it can be tough to calculate how much your own vehicle would cost you in the long run. Youll also have to decide whether youd like to purchase a used or new model. Obviously, a full-sized houseboat will end up costing much more than a dinghy with an outboard motor.
For the sake of argument, lets say youre trying to purchase a regular leisure-style motorboat for fishing, water skiing, and other activities. In that case, you would have to consider these kinds of basic costs:
What Is A Good Interest Rate On A Used Boat Loan
While used boat loans can occasionally have rates higher than those offered for new boats, this isnt always the case. In fact, many lenders offer the same competitive rates whether youre buying used, new, or even refinancing. Because of this, applicants can expect to find used boat loans with rates in the 4% to 5% APR range.
For instance, Bank of the West our overall top pickoffers interest rates starting at 3.74% APR for watercraft over $50,000, whether the boat is new or used.
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How Else Can I Pay For A Boat
If you cant find a boat loan near you or would rather not use it as collateral, you might want to consider these alternatives:
- Leisure vehicle loans. Some lenders offer leisure vehicle loans that cover a wide range of vehicles from jet skis to RVs and include boats.
- Save up. Not in a rush? Saving up is the cheapest way to buy a boat, since you wont have to pay any interest or fees.
- Rent a boat. Marketplaces like GetMyBoat act like Airbnb for watercrafts, letting you reserve one when you need it.
- Find a boat club. Boat clubs give you access to fleets of boats in exchange for a monthly or annual payment and you wont have to foot the bill for insurance and maintenance.
Financing Options For Boat Buyers
Like other major discretionary buys, funding a boat purchase often requires financial resources beyond cash on hand. Banks, credit unions and other traditional lenders furnish payment options for boat buyers, who rely on various forms of financing to get the job done. People with cash savings may choose to put the boat on a credit card to secure points. Buyers with a strong credit score might consider a personal loan. Homeowners with significant equity might consider a home equity loan. Boat buyers also turn to dedicated financing from maritime lenders, specializing in marine craft credit.
Buyers with good credit references tap collateral loans to pay for boats, in much the same way cars are funded. Once approved, funds are issued and the boat itself serves as collateral for the loan. Failure to make timely payments can result in repossession, allowing lenders to seize and sell boats to recoup their losses.
Another form of funding with versatile applications uses the equity in your home to guarantee repayment. Home equity loans and lines of credit can be used for various purchases, including recreational watercraft. In order to initiate equity credit, most lenders require a current appraisal. In addition, home equity lines carry closing costs similar to conventional mortgages. Because the loans are backed by real property, however, interest rates are lower than those associated with other forms of funding.
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