Boat Loans

Your guide to getting the right boat loan.

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A quick guide to boat loans

A boat loan is a specialised type of financing designed to assist prospective boat owners in purchasing a vessel. Whether you're seeking the adrenaline of a speedboat, the luxury of a yacht, or the tranquillity of a sailboat, boat loans can help you navigate the high seas of financial commitment. These loans can be secured, using the boat itself as collateral, or unsecured, depending on your preference and the lender's criteria.

Here's what a boat loans typically looks like:

eligibility orange tickBorrow from $5,000 - $100,000
eligibility orange tickLoan terms from 1 - 7 years
eligibility orange tickWeekly, fortnightly or monthly repayments
eligibility orange tickFixed interest rates from 6.50%
eligibility orange tickVariable interest rates from 7.95%
eligibility orange tickInterest rate tailored to your situation

What can I use a boat loan for?

Boat loans can be utilised for a variety of maritime purchases. This includes new or used powerboats, sailboats, yachts, jet skis, and even commercial vessels. Beyond the initial purchase, a boat loan can also cover essential extras such as insurance, mooring or docking fees, maintenance, and upgrades, allowing for a comprehensive boating package.

Here are some common reasons people take out a boat loan:

Purchasing a New Boat

Boat loans are often used to finance the purchase of a new boat, whether it's a small fishing boat or a luxury yacht.

Purchasing a Used Boat

Boat loans can also be used to finance the purchase of a used boat, making it more affordable to get on the water.

Boat Repairs and Maintenance

Maintaining a boat can be expensive. A boat loan can be used to fund necessary repairs and routine maintenance.

Upgrading Boat Equipment

From navigation systems to fishing gear, boat loans can be used to upgrade or replace boat equipment.

Boat Refurbishment

A boat loan can help fund the refurbishment of an older boat, increasing its lifespan and potentially its value.

Emergency Expenses

In case of an unexpected breakdown or emergency repair, a boat loan can provide the necessary funds.

Purchase of a Boat Trailer

A boat loan can help finance the purchase of a boat trailer, making transportation easier.

Purchase of Safety Equipment

Boat loans can be used to buy necessary safety equipment like life jackets, flares, and fire extinguishers.

Insurance Premiums

A boat loan could cover the cost of insurance premiums, offering financial protection against damage or loss of the boat.

Boat Storage or Mooring Fees

The costs of storing or mooring a boat can be substantial. A boat loan can help cover these expenses.

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Calculate your repayment estimates and more.

How much can I borrow for a boat loan?

The amount you can borrow for a boat loan varies based on a few factors. These include your personal financial situation, the lending policies of the provider, and the specific type of boat you intend to purchase. The value of boats can range considerably, from small dinghies costing a few thousand dollars to luxury yachts that can cost millions. Therefore, most boat loans can range from a few thousand to several hundred thousand dollars. Typically, lenders offer boat loans starting from around $5,000 up to $100,000 or more. However, the actual amount you can borrow will heavily depend on your financial status and creditworthiness. Lenders look at factors such as your credit score, income, existing financial commitments, and your ability to repay the loan when deciding on the loan amount.

Another important factor that may affect your borrowing capacity is whether the loan is secured or unsecured. Secured boat loans, where the loan is secured against the boat, generally allow for larger loan amounts due to the reduced risk for the lender. While the possibility of borrowing a significant amount can be enticing, it's essential to borrow only what you can comfortably repay. It's important to factor in additional costs related to boat ownership, such as insurance, maintenance, mooring or storage fees, and fuel. Prior to deciding on the loan amount, it's prudent to take a comprehensive look at your budget and other financial obligations.

Boat Loan Repayment Calculator

To estimate your monthly repayments and the total cost of the loan, input the loan amount, loan term and interest rate into the calculator below. This helps you plan your budget and choose the most suitable loan terms.

Loan Amount
Establishment Fee
Loan Term (Years)
Interest Rate
Total amount to repay
Your repayments

Balance over time

Am I eligible for a boat loan?

Lenders consider several factors when assessing your eligibility, including your credit score, income, debt-to-income ratio, age, residency, and required documentation. While meeting the eligibility criteria doesn't guarantee loan approval, having a good credit score, stable income, and a positive financial profile significantly improve your chances.

You are eligible to apply for a boat loan if you are:

eligibility orange tickOver the age of 18; and
eligibility orange tickAn Australian citizen or permanent resident; and
eligibility orange tickHave a regular source of income, that is enough to meet the repayments

How to apply for a boat loan?

Applying for a boat loan is easy and only takes a few minutes. Get started by filling out some basic information into our application form. We’ll review your information, and someone will be in contact with you to discuss the best option for you from over 40+ Australian lenders.

If you’re eligible for a boat loan, and you are happy with the initial quote, you will need to prepare documents such as:

eligibility orange tickPassport or drivers licence
eligibility orange tickProof of income and expenses (e.g. payslips, bank statements)
eligibility orange tickDetails of any current debts or other loans

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How to get the best boat loan for you?

When searching for a boat loan, it's essential to understand the different factors to find the best fit for your needs. From interest rates and fees to loan terms and early payout options, each factor can increase or descrease the total amount you will repay.

Interest Rate

When it comes to obtaining a boat loan, one of the key factors to consider is the interest rate. The interest rate directly affects the overall cost of borrowing and your monthly repayment amount. It's crucial to compare interest rates from different lenders to ensure you secure a competitive rate that aligns with your financial goals and helps you save on interest expenses over the loan term. Keep in mind that interest rates can vary based on factors such as your creditworthiness and the lender's assessment of risk.


In addition to the interest rate, it's important to evaluate the fees associated with boat loans. These fees may include application fees, origination fees, processing fees, and ongoing maintenance fees. By carefully understanding the fee structure of different lenders, you can choose a loan with transparent and reasonable fees. Evaluating both the interest rate and fees will help you determine the overall cost of the loan and ensure you minimize costs throughout the loan duration.

Comparison Rate

When comparing boat loan options, considering the interest rate alone is not enough. The comparison rate provides a more comprehensive understanding of the true cost of the loan. It incorporates both the interest rate and any additional fees associated with the loan, giving you a clearer picture of the total cost of borrowing. By comparing comparison rates from different lenders, you can make more informed loan comparisons and select the option that offers the best overall value.

Loan Term

The loan term, or the duration of repayment, is an essential aspect to consider when obtaining a boat loan. Shorter loan terms generally result in higher monthly payments but lower overall interest costs, as the loan will be repaid in a shorter timeframe. Longer loan terms may offer lower monthly payments but could result in higher interest expenses over the life of the loan. It's crucial to assess your financial situation and determine the loan term that aligns with your ability to comfortably make repayments while minimizing interest costs.

Early Payout

Flexibility in loan repayment is valuable when considering a boat loan. Early payout options allow you to repay the loan before the agreed-upon term without incurring penalties or additional charges. This flexibility can be advantageous if you come into unexpected funds or wish to reduce interest expenses. Before finalising a boat loan, review the terms and conditions to ensure that early repayment is possible and to understand any potential limitations or conditions that may apply.

Balloon Payment

Some boat loans may include the option for balloon payments. A balloon payment is a larger lump-sum payment due at the end of the loan term. While balloon payments can reduce monthly repayment amounts, it's important to carefully consider their implications. Ensure that you will have the necessary funds available to make the balloon payment when it becomes due. Balloon payments can be a suitable option if you anticipate having the funds or plan to refinance the balloon payment at the end of the loan term. However, it's crucial to fully understand the impact of balloon payments on your overall financial strategy.

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Frequently Asked Questions

Still have questions about boat loans?

These helpful FAQs will help you find the answers you need. If you can't find what you're looking for, you can request a callback below.

Can I use a boat loan for any type of boat?
Is boat insurance required for a boat loan?
Can I use a boat loan for boat repairs or upgrades?
Can I refinance a boat loan?
What is the interest rate on a boat loan?
How long does it take to get approved for a boat loan?
Can I pay off my boat loan early?
Are boat loans secured or unsecured?
Can I get a boat loan with bad credit?
What happens if I can't repay my boat loan?
Can I get a boat loan if I'm self-employed?
How does a boat loan affect my credit score?