Boat Loans In Melbourne

Break Free Home Loans in Melbourne are the best mortgage broker, with over 20 years of industry experience. We provide lending solutions and advice tailored to your needs. We work closely with clients as trusted advisors and are accessible to clients when needed.

Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.

Whether you’re looking to finance a new boat purchase or refinance an existing loan, we can help. We work with a wide range of boat loans Melbourne lenders, so we can find the right loan for you. Compare your marine finance options to save thousands of dollars. If you’d like major savings and get the financing you need, talk to our brokers today.

What Is A Boat Loan?

Like car loans, a boat loan can be a secured or unsecured personal loan. They are designed to specifically provide finance for a boat. On secured boat loans, the boat itself can be used as a guarantee. If you’re looking for a competitive rate, you may want to consider this option. For new boat loans especially, which are more expensive, secured boat loans will offer larger loan amounts and longer repayment terms. Depending on the loan, however, there may be a balloon payment required at the end of the term.

How Do They Work?

Boat loans allow you to spread out the purchase price of your boat. They’re a specific type of personal loan that works the same as a car loan. They follow a similar financing structure whereby the lender provides the client a sum to borrow from. This sum will be paid back by the borrower over a fixed repayment period with interest.

Types Of Boats You Can Finance

Boat loans can finance boats through both private and commercial sales. If you need a boat for business rather than recreation, there are also boat loans available for that exact purpose. The following are just some boats that you can get on marine finance:

  • Yachts
  • Dinghies
  • Jet boats
  • Sailboats
  • Powerboats
  • Motor cruisers
  • Bass boats
  • Bowriders
  • Cabin cruisers
  • Catamarans
  • Centre consoles
  • Gameboats
  • Houseboats
  • Runabouts
  • Ski and wakeboard boats
  • Trawlers
  • Walkarounds
  • Other marine leisure vehicles

Pros & Cons

Whether it’s used boat loans, no credit boat loans, or bad credit boat loans, there are both benefits and drawbacks in financing a boat purchase. Common advantages include:

  • Specialised loans: Whether it’s a standard secured personal loan or commercial marine finance, there are options available specifically designed to finance a boat with flexible loan terms and interest rates.
  • Fast loan approval: Lenders quickly approve boat loans. The quick turnaround time and relatively easy application process are reliable. It’s an ideal option when you want to have the finances for your boat in short notice. Some marine finance brokers even offer automatic approvals for loans under a certain borrowing limit so you can get approved even faster.
  • Competitive interest rate: Cheap boat loans offer competitive interest rates which tend to be lower than other credit options. It’s a great alternative to save money.

Meanwhile, the following are some common disadvantages:

  • Large loan amounts required: You need large loan amounts. Boats are pricey and require larger loan amounts. It’s important to choose a term that keeps your repayments manageable.
  • Secured boat loans are not inclusive of additional costs: Additional costs can’t be factored into secured boat loans. This includes ongoing boat maintenance, boat insurance ($100 or more per year), marine equipment (approx. $1,500), and storage fees ($800 per year)—which can tally into an expensive figure.

How To Get A Boat Loan In Melbourne?

Comparing boat loans through qualified brokers will help you secure the best deal on your financing. The following are some steps you should consider when starting your boat loan application:

  1. Search and compare boat loans interest rate and comparison rates.
  2. Study the loan you’re interested in. Calculate monthly repayments, total cost of the loan and take into account the overall fee structure. Make sure these fit within your budget.
  3. Get pre-approval. Some lenders allow you to pre-qualify for their loan. This means passing a soft credit check, which won’t hurt your credit score. It will help you check if you meet their eligibility requirements and if you can actually afford the loan.
  4. Submit your loan application
  5. Receive financing and begin making your loan repayments. It’s important to keep on top of your repayment schedule to not damage your credit score.
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Documents Needed

Aussie boat loans and truck loans require some supporting documentation. Lenders will assess your credit score and determine your eligibility for their loan. On your loan application, you will have to provide:

  • Proof of identities such as a driver’s license, passport, or other government-issued ID
  • Proof of income and employment such as payslips and tax returns
  • Details of other financial commitments
  • Details of assets such as asset statements for secured loans

Requirements To Qualify

Lenders have specific requirements the borrower must meet. This includes income and credit score. You need to check if you’re eligible for the loan you’re interested in before applying. To apply for any type of personal loan, boat loans included, most lenders require you to satisfy the following conditions:


Be 18 Years Or Older

To apply for boat loans, you need to be 18 years or older.

Be An Australian Citizen

You must be an Australian citizen, a permanent resident or have a valid visa.

Good Credit Profile

You need a good credit rating. You can prove this by providing details about your credit history through bank statements and other financial information.

Stable Income

You need to be employed or receive regular income. You’ll have to provide details about your current financial position through recent payslips or employment details. You may have to meet a minimum income threshold. This depends on the lender.

Can I Get A Marine Finance With Bad Credit

Can you get a boat loan if you have bad credit? Our brokers understand things can happen in life that compromise your credit. Even if you have a poor credit rating, we work closely with you to understand your financial circumstances and get you the loan you need. There are specialised lenders who can offer you marine finance regardless of your less than perfect credit. However, you may have to pay larger interest as your interest rates will be personalised based on your credit score.

When choosing a bad credit boat loan, it’s important to carefully weigh the costs against the benefits. Alternatively, you can take some time to build up your credit score before applying for a loan. You can apply for a smaller loan amount, apply with a creditworthy cosigner or put up a collateral as security. You can also lower credit usage, pay off any outstanding debts and manage your payments to improve your credit score.

New VS Used Boat Loans

One of the first things you’ll need to decide when taking out a boat loan is whether you want to finance a new or used car or boat. There are pros and cons to both options, so it’s important to weigh your options before making a decision.

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For New Boats

If you’re looking for a low interest rate, then financing a new boat is usually the better option. This is because lenders view new boats as less of a risk than used boats. Boat loans for new boats usually have lower interest rates than used boat loans, so you’ll save money in the long run. The downside of new boat loans is that they often have higher monthly payments. This is because you’re borrowing a larger amount of money, so the loan will take longer to pay off.

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For Used Boats

However, if you’re on a tight budget, then financing a used boat may be the better option for you. This is because used boats are usually cheaper than new boats. Boat loans for used boats usually have higher interest rates than new boat loans, but the monthly payments are often lower. If you’re looking for a lower monthly payment, then financing a used boat is a great option. The downside of used boat loans is that you may end up paying more in interest over the life of the loan.

How Much Can I Borrow

With different loan products and eligibility criteria, your loan amount will vary widely from one lender to the next. Most personal loans, however, have a minimum loan amount of around $1,000. Their upper limits are often more flexible. You need to do your research to find out which lender offers you the loan amount you need. The exact offer they will lend you will depend on your income, credit score and whether you’re interested in a secured or unsecured loan. Each boat loan has its own advantages and disadvantages, so it’s important to weigh your options before deciding which one is right for you.

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How Do We Choose Boat Loans Lenders

When comparing your loan options, these are some things to keep in mind:

Interests & Rates

This depends on the lender you choose. Generally, rates for secured loans are lower because they present less risk to the lender. Make sure you select a loan with a competitive interest rate to save money in the long term.

Secured or Unsecured

Boat loans can be secured or unsecured. You need to put up an asset as collateral to borrow against secured loans. This can be repossessed by the lender if you default on the loan. Unsecured loans don’t have this requirement, but they have higher interest rates and lower borrowing amounts than secured loans.


Does your loan offer fixed repayments? Are fixed repayments most suitable for your budget and lifestyle? Or would you prefer a variable loan to take advantage of market rates? It’s important to consider if you can manage your payments on time over the life of the loan.

Term Of The Loan

The length of your loan will usually be longer with a boat loan. But some loan terms may only be seven years long. You need to select a loan that allows you enough time to pay off your debt.

Comparison Of Marine Finance Lenders In Melbourne

Looking into your boat loans Melbourne finance options? Break Free Home Loans can help you compare a wide range of loans from different lenders, so we’re sure to find one that’s right for you. Get in touch with us today and we’ll help you get the best boat loan for your needs.

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Need A Consultation? Talk To An Expert!

We help clients compare and choose from some of the best boat loans Australia has to offer. If you’d like your loan application process to be seamless and stress-free, consult our brokers. We understand how to build a strong case for your loan approval no matter your financial situation. We can help you find the perfect loan with competitive rates and flexible repayment options to suit your needs. Complete your application with us today.

Frequently Asked Questions

Our brokers are prepared to answer any questions you may have. Talk to us today.

How Does A Boat Loan Work?

When it comes to boat loans, you have two main options: new boat loans and used boat loans. These can be secured or unsecured loans. Rather than paying for the purchase price upfront, you can spread the cost of your boat in instalments. This is beneficial for anyone who would like to buy a boat but cannot pay for it outright.

Boat loans have a similar fee structure where a lender gives you a lump sum to borrow. You will then have to pay back the loan over a set repayment period with interest. Buying a boat in finance gives you a more flexible payment method but also comes with additional charges as a cost of borrowing. Always weigh the benefits and risks carefully to ensure you are getting the most value out of your loan.

What Are The Requirements To Qualify For Boat Loans?

You need to be 18 years of age or older, an Australian citizen or permanent resident, have a regular income and good credit history. You will be asked to provide supporting documentation to verify this information.

How To Get Marine Finance In Melbourne?

  1. Calculate interest rates and comparison rates of different loan products.
  2. Choose your preferred loan. When you are sure that your monthly repayments, the total cost of the loan and its overall fee structure suit your budget and lifestyle needs, pre-qualify for the loan.
  3. Get pre-approval from the lender. You need to pass a soft credit check. This ensures you are in a good position to meet their eligibility requirements and that you can afford the loan repayments.
  4. Submit your loan application. Some lenders offer an entirely online application process.
  5. Receive finance and start making payments on your loan. You need to stay on top of your repayment schedule to protect your credit score.

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