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What Are Boat Loan Rates

What Are The Fees

Cheap Boat Loan Basics, How to Save Big on Your #BoatLoan (low rate, low down payment, low payment)

There are no prepayment penalties or an annual fee associated with a Boat Loan.

Elements boat loans include a low $140 processing fee. Refinancing of an existing Elements boat loan has an additional $200 fee.

For boats over 25 feet, there is a standard Coast Guard Recorded Mortgage requirement. This includes a fee of $500 to $750 that is paid to a third party.

Boat Loans And Personal Watercraft

Low Boat Loan Rates as low as 3.24% APR*, new or used. Rates as low as 7.04% APR* for personal watercraft . See all rates.

Purchase or RefinanceHave a passion for boating? Maybe youre looking to cruise around leisurely? Are you hooked on fishing or is sailing more your style? Or perhaps speed is your thingyoure looking for a personal watercraft .

If youre looking to hit the water in the perfect boat for you and your family, Tower has the loan for younew or used. Or refinance your current boat loan to a lower rate, with terms to meet your needs. We specialize in boat financingwell make your powerboat and sailboat dreams come true!

There are multiple loan options to choose from, depending on the size and cost of your boat. Loan amounts are available up to $100,000 with terms up to 144 months. Just tell us what you want and well show you how much boat you can afford.Its that easy.

  • Up to 100% financing with little to no money down*
  • Flexible terms up to 144 months

How Long Is A Boat Loan Term

Boat loan terms can stretch for as long as 20 years, due to loan amounts that can reach into the millions. But just because you can finance a boat for that long doesnt mean you should. Its possible to finance even large amounts for relatively short terms that said, it might be difficult to find terms for less than two years, even for inexpensive boats. Heres more on how long you can finance a boat.

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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.

4.29% to 9.99% for both new and used purchases, and 3.59% to 3.94% for live-aboard boats

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.

What Do Lenders Look For In A Borrower

Peoples Bank

Making yourself a good candidate for lenders will go a long way in getting you low-cost financing for your big purchase.

  • Steady source of income. You need to show you have enough regular income to afford monthly repayments after bills and debt obligations.
  • Low debt-to-income ratio. Your current debts will also play a role. Lenders want to make sure you wont be overextending yourself and putting yourself at risk of default when you borrow a boat loan.
  • Liquid assets. Lenders often want to see that you can still handle payments should your employment or income situation change drastically.
  • Good to excellent credit. Lenders look for borrowers with good to excellent credit because it shows a history of paying your bills on time.
  • Experienced boat owner. Experience with a boat isnt a must, but it may make a lender more confident. Having had a boat in the past means you likely know the ropes.

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Best For Quick Funding: Lightstream


  • Minimum credit score: None, but good credit recommended
  • Loan terms : 24 to 84 months

For borrowers looking for fast funding for a boat loan, LightStream is a great option. The lender offers same-day approval and even same-day funding in some cases.

  • Funds deposited as soon as same-day

  • Rate Beat program

  • No fees or collateral required

  • Available for buying or refinancing a boat

  • Offered in all 50 states

  • Loans cap out at $100,000

  • Maximum rates can be high

As part of the Truist bank family, LightStreamalong with SunTrust and BB& Tprovides a variety of banking products and services to customers across the country. This bank operates in all 50 states, offering loans on new, used, and refinanced boats to qualified applicants ages 18 and over.

We chose LightStream as best for quick funding because this bank offers not only same-day approvals but same-day funding in many cases. You can choose your own funding date once approved for your boat loan, even if its the same day you applied.

Boat loans through LightStream are offered from $5,000 to $100,000 with repayment terms ranging from 24 to 84 months. Current interest rates range from 4.29% to 11.89% APR with a 0.50% auto-pay discount. They also offer a Rate Beat program, which promises to offer a rate thats 0.10% lower than the rate offered by a competing lender within the last business day.

Boat Loans: Questions To Ask Before You Apply

How does the loan fit into my budget? Monthly payments on a boat loan should fit comfortably within a budget that covers all of your needs, wants, debt payments and savings. Use our boat loan calculator to see estimated monthly payments, interest costs and total payments.

Payments toward the boat loan combined with other debt payments shouldnt exceed more than 20% of your income.

What is the true cost of boat ownership? Buying a boat isnt your only new expense. Additional costs include fuel, licenses, insurance, storage, maintenance and repairs. Boats also depreciate over time, just like a car.

Does my boat have resale value? Its smart to buy a boat that is both affordable and popular, as this can attract potential buyers if you decide to sell it and pay off your loan at any point in the future.

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Applying For A Boat Loan

There are a few steps youll need to take in order to apply for a boat loan. These include:

  • Whether youre interested in a sailboat, motor boat, or houseboat, what boat you want to purchase will influence what type of loan you need from a lender.
  • Compare rates: When shopping for a loan, you should compare rates from multiple different lenders. This can help to ensure that you get the best deal possible.
  • Review your credit score: Some lenders have minimum credit score requirements, while others reserve the most competitive rates for borrowers with excellent credit. Make sure your score is in a good place before applying.
  • Make sure you have enough for a down payment: Typical down payments range from 10% to 30% of the total loan amount.
  • Complete a loan application: To apply for a loan, youll need to provide information about yourself and the boat you want to buy, including your name, address, social security number.

Who Should Get A Boat Loan

Refinance Your Auto, Boat, or RV with ORNL FCU!

You should get a boat loan if:

  • You want to purchase your first boat but dont have the cash.
  • You want to upgrade and buy a new boat.
  • You want to buy a used boat.
  • You want to refinance your current boat.
  • You want to purchase a yacht and use it for charters.

A boat loan is usually not a good idea if youre living paycheck to paycheck and arent sure if you will be able to make the payments on time. Its also not a good idea if youre not going to use your boat very much, you may be too busy, or live somewhere with a short boating season.

You want to make sure that the high associated costs of owning a boat and financing it are worth it before deciding to get a boat loan.

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The Best Boat Loans Of September 2021

Check rates > >

*With auto-pay discount

The best boat loan depends on your budget, the type of boat you’re purchasing, and the age of the boat. From financing for small ski boats to full-size yachts, there’s a loan out there for most things that float. But they’re not all the same.

Once you’ve narrowed down the type of boat you’re interested in buying and what model year you’re looking for, you can start shopping for a boat loan. Many lenders will only finance certain types of boats, or require a boat to be newer than a certain model year. To make sure you make the most of your shopping, know this going into it.

There aren’t as many lenders offering boat loans as there are auto loans. But there are still a few to choose from.

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Here are Insider’s top picks for boat loans in September 2021.

Types of boats financed: LightStream doesn’t list any specific requirements

4.29% to 10.39% APR, with auto pay discount

Loan amounts available: $5,000 to $100,000

Watch out for: High credit score requirements. LightStream only works with borrowers with good or better credit, so anyone with a low credit score may not qualify.

LightStream boat loans are a strong option for most borrowers looking for an inexpensive boat and fast funding.

LightStream is an online lender backed by Truist . With a completely online experience, same-day funding available, and many loan types offered, LightStream is one of our picks for the best RV loans and best personal loans.

Belco Community Credit Union

Ready to secure a boat loan, but not sure where to begin? Its not always easy finding the right financing for your needs, and even less easy to discover the rates, terms, and benefits that work best for you. Belco Community Credit Union changes all that, offering incredible savings and benefits to members looking to save.

Boat loans from Belco offer features such as:

  • Flexible term lengths
  • Up to 110% financing based on registered MSRP numbers
  • Fast pre-approval and approval rates
  • Electronic payment services including online bill pay, transfers, and more

Check out our incredible rates for boats both new, and new-to-you.

New Loans *
Used Loans *

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How To Find The Lowest Boat Loan Rates

Boat loans are require intensive research.

Finding the best rate on a boat loan is a straightforward process but there are a few key steps involved which require legwork on the part of the borrower. By understanding how securing a boat loan works, you can save time and money right away, while lowering the cost of the boat over the term of the loan.

The Southeast Financial Difference

Best Boat Loan Rates

Efficient: When looking for a boat loan through a dealership, youll play the game of shifting rates and terms, down payment and cost of the vessel. By securing your loan through Southeast Financial, you take greater control of the negotiating process and can secure the best loan to ensure the greatest value when purchasing your new boat.

Fast: If buying a used boat from a second party, time is of the essence. Once youve agreed on a price, the seller will want payment quickly. This is where our online efficiencies come in. Once youve gone through our approval process, securing the loan and getting your check is processed without delay, helping you get on the water and having fun in record time.

Flexible: Because we specialize in all types of waterborne vehicle financing, we dont need to play games with our rates or terms. We can finance your watercraft for as little as $15,000 with repayment terms of up to 15 years for our larger boat loans, which helps in lowering your monthly payment. And for larger boats, we can finance up to $4 million, ensuring we can get you in the exact boat you need without having to hassle with a bank or dealership.

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Boat Loans: Best Ways To Finance A Boat

When looking to finance a boat purchase, it’s important to understand the ins and outs of boat loans and using a boat loan calculatorand how to get a loan through financial institutions likes Wells Fargo, USAA, and Chase.

Cheap fuel, low interest rates, tons of new boat models and lots of lenders add up to this being just about the perfect time to buy a boat. These days, borrowing is increasingly necessary too as boats have grown bigger and more expensive. The average new boat loan today is over $200,000, so theres been an uptick in larger loans. That said, smaller loans are also getting attention since national and local banks, financial services firms and credit unions have returned to marine lending after the recession. It may be time to dive in and get that dream boat.

Get The Best Financing And Lowest Rates For Your Next Boat

We structure your boat loan to give you the interest rates and loan length that make owning a boat a true dream come true. Get on the water quicker with a loan through Canada Powersports Financing. Simply fill out our online form, call, or email us for a quick response and even quicker funding!


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Whats Considered A Good Credit Score For A Boat Loan

As noted, there are many different types of boat loans and different types of lenders that offer them. As a general rule of thumb, the higher your credit score, the lower your interest rate. This means that you will end up paying less over the term of the loan than someone with a lower credit score.

Typically, 700 is considered a good credit score for a boat loan. However, some lenders dont require a minimum credit score or will consider your debt to income ratio, work history, and the cost of the boat alongside your credit score.

Where To Get A Boat Loan

Financing a Boat and What Works Best

Online loans

Online lenders typically offer unsecured boat loans only. These lenders may be able to approve and fund loans more quickly than other lenders. Online lenders also offer pre-qualification, which shows you what loan amount and rate you could get without affecting your credit.

Some tailor their loan products to borrowers with good or excellent credit , while others accept lower credit scores and focus more on factors like your monthly cash flow, education and where you work.

Bank loans

Youre more likely to find secured loans from banks. Banks may sometimes offer perks to existing customers, like discounts and favorable loan terms. If your bank offers boat loans, it may be a good place to start.

Navy Federal and First Tech both offer boat loans with 15-year repayment terms with rates starting below 10%.

loans from marine lending specialists

Boat loans from marine lenders have similar rates and repayment terms to personal loans. One advantage might be the ability to work with a specialist who understands the boating business, according to the National Marine Lenders Association.

These loans must be secured by the boat and require down payments from 10% to 20% of the purchase price. A bank may require a down payment or make it optional.

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Is Financing A Boat A Bad Idea

As a general rule of thumb, you should ensure that any purchase you finance will be paid down faster than it depreciates. If the purchases value decreases at a faster rate than your loan balance, you run the risk of going “upside down” on the loan, or dealing with negative equity.

While this is most often talked about in terms of new cars, its also a concern with watercraft, especially since boats are quickly depreciating assets.

Negative equity can be a serious concern with a high-value investment such as a boat. If the boat were to be stolen, totaled, etc., you would be on the hook for the difference between the remaining loan balance and the insurance companys valuation/payout. Negative equity can also come back to bite you if you ever want to trade in the boat or sell it, as youll wind up owing your lender out-of-pocket in order to finalize the transaction.

Lastly, its important to recognize that financing a purchase will cost you more than the sticker price, no matter how competitive the interest rate you obtain. Between loan processing fees and finance charges, the added expense can be significant.

While financing a boat is not a bad idea in and of itself, its important to strike a balance between your purchase price, down payment amount, and loan repayment terms. This will help maintain a healthy loan-to-value ratio and ensure that you dont pay significantly more for your purchase over time than if youd paid in cash.

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