Boat Finance: Compare 50+ Australian Lenders

The biggest structural decision in a boat finance application is whether to secure the loan against the boat. Both options are available through Emu Money's lender panel.

A secured boat loan uses the boat itself as collateral, generally covers $5,000 to $1,000,000, and runs over terms of 12 to 84 months. Because the lender's risk is lower, secured loans tend to price more sharply and offer higher borrowing limits, which suits larger purchases like cruisers and yachts. Settlement takes slightly longer because the boat may need a marine survey.

An unsecured boat loan requires no collateral, is generally capped at around $200,000, and settles faster because there's no asset to value. This suits smaller boats or customers who want the loan kept separate from the asset.

For purchases over $15,000, a secured loan is almost always the cheaper option once the rate difference is weighed against setup costs. Below that, the setup costs of a secured loan (valuation, PPSR registration) can eat into or eliminate the savings. Read our full guide to secured vs unsecured boat loans for a detailed breakdown.

Boat loan pricing is risk-based, so rates vary by lender and by applicant. Rather than one flat number, each lender weighs several factors to set the rate they offer you, and small changes to your profile can shift you into a sharper pricing band.

Your credit score is the starting point, but it isn't the only input. The boat's age and value, whether the loan is secured, the term length, and your income and existing debts all feed into the final rate. Two applicants with the same credit score can be offered different rates depending on the rest of their profile.

Comparison rates on boat loans are typically calculated on a standardised $30,000 loan over 5 years, which makes it easier to compare offers from different lenders on a like-for-like basis. Always check the comparison rate rather than just the headline rate. For more detail on how pricing works and what to expect, see our guide to boat loan interest rates in Australia.

Both new and used boats can be financed through Emu Money's panel, but the numbers work differently depending on age. Boats depreciate quickly in the first few years, then the curve flattens out. By the time a boat is 7 to 10 years old, it has typically lost 40% to 50% of its original price, which is why the sweet spot for used boat finance sits between 5 and 10 years old: enough depreciation has already happened that you're not paying a new-boat price, but the boat is still young enough to finance easily and hold reasonable resale value.

Older boats, particularly those beyond 15 to 20 years, can still be financed, but lenders may apply shorter maximum terms or ask for a marine survey before approving the loan. Our full guide to used boat finance in Australia covers age brackets, lender requirements and how to negotiate on a used purchase.

Sometimes it's the motor, not the hull, that needs financing. A new 150hp outboard typically costs $18,000 to $25,000, and a full repower (removing the old motor and fitting a new one) can run anywhere from $8,000 to $30,000 or more depending on horsepower and rigging.

Most outboards have a service life of 1,500 to 3,000 hours before a major rebuild or replacement is needed, so a tired motor on an otherwise sound hull is a common reason customers look at motor finance. Standalone motor loans are available separately from a full boat purchase, which can make sense if you already own the boat outright and just need to repower it. See our guide to boat motor finance in Australia for financing structures and typical costs by motor size.

A lower credit score doesn't rule out boat finance, but it does change the cost. Specialist lenders on Emu Money's panel work with customers who have a patchy credit history, defaults or a prior bankruptcy, though rates are generally higher to reflect the added risk.

The gap can be significant. On a $30,000 boat loan, a customer with bad credit can pay around $13,400 more in interest over 5 years compared with a customer on a standard rate. That makes it worth improving your credit position where possible before applying, or considering a secured structure, which can help offset some of the rate premium. Read our full guide to bad credit boat loans in Australia for what lenders look at and how to improve your chances.

Beyond your income and credit history, lenders assess the boat itself before approving a secured loan. A marine survey is common for larger or older secured purchases, and typically costs $25 to $40 per foot for a pre-purchase survey, plus $100 to $180 an hour if a mechanical inspection of the engine is included. For a typical 20-foot boat, a full survey usually comes to $500 to $800 all up.

Lenders also run a PPSR (Personal Property Securities Register) check to confirm the boat isn't already encumbered by another loan, and most require comprehensive insurance to stay in place for the life of the loan. Budgeting for the survey and insurance upfront avoids surprises once you've found the boat you want.

A few smart choices can make your boat loan more affordable. For purchases over $15,000, a secured loan is almost always cheaper: at $10,000 secured can save around $270 over 5 years, though that saving is often eaten by setup costs at that size. At $30,000 the saving grows to around $810, and at $60,000 it's around $1,620, comfortably outweighing the establishment fee, PPSR registration and valuation costs.

If you're considering a variable rate, note that most lenders set a $10,000 minimum for variable boat loans, compared with $5,000 for fixed. Always compare the comparison rate, not just the headline rate, since it's calculated on a standardised $30,000 loan over 5 years and bundles most fees and interest into one figure.

Choose the shortest term you can comfortably afford, since shorter terms mean higher repayments but substantially less total interest over the life of the loan. Getting a marine survey done before you buy can also save money by catching mechanical issues that affect price negotiation and insurance costs down the track.