How to save more on my boat loan?
If you’re in the market for a new boat, you’ve probably considered securing a loan from a boating broker. These simple tips will help you save more over the entire term of your loan, and find a loan that matches your goals.
So you can spend more time on the water with less stress!
Find a good broker
Having the right people on your team will make all the difference to the outcome of your loan. The banks only have one or a few loan products available, so it makes sense to go to a finance professional who has more loan products at their disposal.
A broker can compare many different boating loans from competing lenders, and then pinpoint one that is right for you. As a result, you’re more likely to secure a loan that saves you more over the entire repayment term.
A good broker will research and tailor a loan to suit your unique objectives. Ask around your marina or boating club, check out reviews on Facebook, and do your best to find a broker who can help you find a loan that matches your goals.
Know your budget
Knowing what you can afford to repay is so important when securing a loan. A good boating broker should tell you what budget will work best for you, based on your earnings, debts and other financial information.
We recommend speaking with a broker before you go start looking at boats for sale, so you only spend time researching boats within your budget.
It’s easy to fall in love with a particular model (trust us, we’ve been there!), so limiting your search to what you can afford will prevent unnecessary heartache.
Pay off credit card debt
Most financial advisors and brokers will tell you that reducing your existing debt will make you look more appealing to lenders. So, pay off as much as you can on your credit cards, and any existing loans that need to be dealt with.
Of course, this isn’t always easy. If you are in significant debt, it may be worth temporarily putting off the boat loan application and spending time reducing your debt. Then, you’ll be more likely to secure a loan in the future.
Remember, a boat is a big purchase. Make sure you have the capacity to repay your loan, so you don’t put yourself under unnecessary stress. In the meantime, join your local club and see if anyone needs new crew for their boat, just to get your fix.
Look at niche lenders
Most good brokers know that the Big Banks and other major lenders don’t always have the most attractive interest rates and terms. This is why it can be useful to explore more niche, lesser-known lenders.
If you’re not sure where to start, speak to a good mortgage broker. They have a number of lenders on file, and can easily compare rates and terms that are likely to match your needs and goals.
A broker will also handle the loan application and explain what kind of financial evidence is needed for the lender. As we said, just make sure you find a good broker. (Word of mouth referrals and Facebook or Google reviews are also a good way of vetting them.)
Most importantly, know that there is no point rushing into securing a loan. Always be realistic about what you can afford, and don’t push your budget beyond what you can afford. It may be tempting, but ultimately, you’ll regret it when the stress of high repayments kicks in.
Once you have bought your boat, the costs don’t stop there. Be sure to have it insured so you’re covered in the event of damage, or other incidents. We can assist you with securing comprehensive marine insurance that covers you for the stuff that matters.
Get a free quote from one of our marine insurers today.
Financial Advice Disclaimer: This information is general in nature. Insurance underwriters do not provide financial advice. Clients seeking financial advice should seek the services of a qualified financial planner or advisor.