There’s nothing quite like feeling the wind at your back and the spray of the water salt in the air as you manoeuvre through the waves. Whether sailing through the Whitsunday Islands or anchoring at Sydney Harbour’s Waterfront, there’s no denying that the sailing in Australia is among the best in the world. However, before you get out on the water, you will need to secure a boat loan so that you can go and buy a boat to take on your next big adventure.
Like all other major purchases, it’s important that you find an appropriate loan that you can afford and that will work within your budget. While it might seem out of reach at first, don’t worry, as there are a few straightforward things you can do to secure an affordable loan, such as the Latitude boat loan. You just need to take the time to research the different methods of financing a boat at a reasonable rate, so that you make the right decision for your financial situation.
Continue reading to learn what you need to consider when you’re looking for a boat loan.
Getting Pre-Approved
One of the easiest ways to finance anything is through the pre-approval process. The pre-approval process for a boat loan can do one of two things. First of all, it can give you an idea of just how much boat you can afford. Secondly, it helps to streamlines the application process, making it possible to close the deal very quickly. Many lenders have some form of pre-approval process in place, so prospective buyers should ask their financial provider how if it is possible to secure a pre-approval letter.
Types Of Security
Reducing the interest rate is one way to reduce the overall cost of the loan. One of the best ways outside of having a stellar credit rating is to provide the lender with some form of collateral. This security can shave a few points off the interest rate and make the loan more affordable.
When it comes to securing a boat loan, you can provide collateral using the boat itself as security. Depending on who your lender is, you may also be able to use your home, your car or even a sizable savings account as collateral against the loan. Another option might be to have someone cosign the loan to provide security for the loan. Speak with your lender and see what collateral they will accept for a boat loan.
The Newer, The Better
While it might seem unwise to purchase a boat new or near new, there are many benefits to doing so. Most loans for new or near new boats are usually approved quicker and the interest on these loans, are on average, less than other types of boat loans, as they are seen as a sounder investment with less chance for things to go wrong. If you are not interested in purchasing a new boat, aim to purchase a boat within five years to increase the chances of you get approved.
Maintenance Costs
It’s important to remember that the cost of purchasing a boat is only a small portion of the boat’s total costs. Maintenance costs can include mooring and marina fees, caring for the boat’s engine, carrying out repairs, insurance and paying for fuel, among other expenses. If you are looking to purchase a boat, it’s important that you pay close attention to these costs because the larger the boat the higher the maintenance costs will be and therefore the more expensive the boat will be overall.
Secure A Boat Loan And Set Sail
Securing financing for a new boat is easier now than it has ever been as there are more financing options available. The loan you choose and the type of boat you want to purchase will weigh heavily on the total cost of financing your new boat. However, with the right approach, there is no reason that you cannot secure a loan that works for you, find the boat of your dreams and set sail.
