It is a dream of most of us to have a boat of ourselves to enjoy sailing in the sea on weekends all summer long. Some of us can afford to buy the sail of their dream, where some use the boat loan facility to fulfil their dream. It has become the best chance amongst people to buy the boat of their dreams.
In our previous article Boat Finance – Things you need to understand, we have discussed the topic in short. Now let’s discuss the costing and how you can get it in detail:
How Much Will A Boat Loan Cost You?
As we mentioned earlier, getting a loan to buy a boat is becoming very common in people. It has drastically increased the boat manufacturing yearly, and thus the advancement in designs and other parameters. Nowadays, the boats are more advanced, thus costing higher than you expect. But you have got APW Finance to guide you through. You can always use our loan calculator to find out the repayments of the loan, however, generally speaking, there are some things that one must consider before going for it:
- Interest Rates – They usually go down as the loan amount goes up or as the term of the loan goes down.
- Higher loan amount can be stretched over longer periods – ranging from 4 to 20 years.
- Usually, the lender will be looking for a credit score of 700 or higher,and will base a loan on a 10% to 20% down payment.
- You could get a loan at a lower credit score i.e. 600 but with a higher interest rate or a larger down payment, but credit score below 600 will not be accepted.
How To Get A Boat Loan?
As the process of getting a loan can be a bit complex, here is a financial advice for you to narrow down the lenders offering loans:
- High net worth is appealing to banks. Generally, 2x net-worth to 1x debt rate is rather good, and it will give you an excellent possibility for other sorts of investment. Also, the lender will make sure that you are not overdone with separate loans.
- As discussed earlier, a credit score of 700 and higher is perfect. However, a credit score around 600 is usually ok, if all the other factors are good.
- Banks need to see that the borrower has earlier managed settlements of a similar extent in history. It will build trust in them that the borrower would not be bewildered by the payments. In the same way, liquidity is very important, as getting into finance should not demolish all the borrower’s resources and assets.
- If you have been in such a situation, then this could play in your favour. The lenders know that boaters with some experience know the requirement of loan and the ongoing maintenance of a boat.
- Steady work with a solid income, good history in the current profession and primary residence are factors lenders take into account. High-value assets ownership are the secondary sources of repayment.
Get in touch with our experts to ask queries that you might have on a boat loan. Get yourself a boat loan considering your needs or requirements.