5 tips when it comes to financing your boat

Published on November 25th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Dreaming of owning a boat doesn’t have to end at just dreaming. When it comes to taking one step closer to finally purchasing your boat the basics is that you need to have your financing done right or you could soon land yourself in hot water. A leisure loan can be one of the ways that you can turn your dream into reality. There are a few handy tips you need to know when it comes to financing your boat the right way.

Know which boat you want to purchase

If there is one thing that can nip your dream of one day owning a boat in a bud, it is not knowing which boat you would like to purchase. Knowing your why you need the boat will also save you from digging in too deep in terms of your finances. Boats usually fall into three categories cruising, fishing or watersports.

This will help you zone into the right budget that you need in order to finance your boat adequately. If you are taking out a loan it will help you know the right amount you need to know to adequately cover your boat expenses.

Pre-approve your loan before you shop

Once you have covered the why you want the boat and what type of usage you will be using it for, you need to steer your way to get a pre-approved boat loan. An average a boat loan can cover you for up to $50 000 for a period of over 5 years. A pre-approved loan can help you know how much you can afford before you go out shopping for your boat. It can also help you when it comes to comparing prices and negotiating to find something that is within your financial reach and will not require you to take out another financial loan.

Keep the long term in mind

One of the common mistakes that first-time owners make when purchasing a boat is choosing the wrong sized boat. Buying a large boat that will burn a hole in your finances can cause problems but settling for a boat that is 2 foot smaller can also be a problem. This goes back to the first point of knowing why you need the boat. If you are planning on getting a boat that needs to accommodate friends and family, you will have to consider something that comes at the right size to do so. This will help you avoid constantly purchasing an upgrade in a short space of time which can cost you.

Know which terms are suitable for you

Comparing is essential when it comes to financing. There are many options available when it comes to financing your boat but failing to compare the features that are suitable for your finances can have long term effects. Considering your loan features such as whether you want your loan to be at a fixed or variable rate can affect how you pay off your loan. It is also vital that you look at the APR rate, which is expressed as a percentage slightly higher than the interest rate and shows you the true cost of a loan.


One way to handle the expenses that come with owning a boat is researching a boat beforehand. This also means the cost of maintaining the boat. If you are planning on buying a boat from a private seller or at an auction, it is vital that you check out the boat before cashing your cheque. Look for any issues that it might come with, but most importantly ask questions so that you get peace of mind.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for leisure loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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