Nowadays, it’s easier than ever to get boat loans in Australia. You don’t need to be a millionaire or a trust fund baby to afford the vessel of your dreams. However, there are still some things you should know before applying for any loan. After all, it’s not just about getting approved; you also have to ensure that you can pay off the entire amount within a reasonable period and at an affordable rate.
Low rate boat loans in Australia have become quite popular in the market. Many lenders offer 6-7% interest rates per year for boat loans. But then, if you are lucky enough, you might strike a 4-5% interest rate deal too.
Here are some of the leading facts about these loans in Australia –
Table of Contents
Getting Boat Loans is easier than Mortgage Loans – Fact #1
As a matter of fact, securing the right boat loan can be tricky at best. It’s certainly not as easy as getting a car loan at your local dealership.
However, it can be said that boat loans are more flexible. While these may come with lower interest rates than other types of loans, they also come with more flexibility because they allow borrowers to use their boats for personal recreation and business purposes.
This is one reason why many people choose this type of financing over traditional mortgages that often require homeownership before making any payment.
Qualifying for a Car Loan might make you Qualified for Boat Loans – Fact #2
If you are like most people, having a bad credit score can make getting approved for a car loan extremely difficult. However, the same doesn’t necessarily apply to boat loans in the island country.
Lenders look at different factors when determining your eligibility for any type of loan. You might be able to get approved even if your credit score is less than ideal.
Therefore, a bad debt-to-income ratio will not disqualify you from getting boat financing. However, it may affect the interest, among other things.
A low net worth isn’t an issue, either. However, again this can have an impact on what type of boat loan programs would be available to you and what kind of interest rates they would charge.
Low-rate Boat Loans aren’t always offered by Local Banks – Fact #3
There are two main ways to get low-rate boat loans: through local banks or credit unions or through specialized finance companies.
The latter is a better option when you think about it – the best rates and terms aren’t always offered by your local bank or credit union.
If you’re looking for affordable lender options for your boat loan, consider working with these specialized lenders who have experience in this niche market. These companies understand that boats tend to hold their value over time and that maintaining them properly will help them stay in good shape for many years.
Final Thoughts
Beautiful shores encircle the sixth-largest country in Oceania from all sides. Australians love their boat rides because they have three major oceans around them – the Indian, Pacific and Southern.
Needless to say, the boat market is quite diverse here. On average small yachts cost more than $10,000. Low rate boat loans in Australia are your best shot at getting your hands on them. A little research will lead you to some of the best financing companies.
