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Boat loan calculator

Boat loan calculator online in 2022: assessment of the best boat loan in Canada

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Scotiabank Scotiabank
Scotiabank Scotiabank
Royal Bank of Canada Royal Bank of Canada
Canadian Imperial Bank Of Commerce (CIBC) Canadian Imperial Bank Of Commerce (CIBC)
TD Bank TD Bank
Calculation according to the vehicle value
Calculation according to the loan amount
Calculate the boat loan
Loan amount

Specify the desired loan amount

1000 $
100000 $
Boat loan calculator
Loan amount

Loan amount

1000 $
100000 $
Down payment

Specify the percentage of the down payment

Your boat loan amount
Loan term

Specify the loan term for the calculation

Interest rate

Choose the interest rate on the loan

1 %
50 %
Type of payments

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Fill out an application for a boat loan online!
Fill out an application for a boat loan online!

Take advantage of our boat loan selection system with a free credit rating check!

What is a boat loan?

Canada is a land of lakes and has vast water reserves, so it's no wonder boating is so popular. It allows you to enjoy nature, discover new places, spend quiet time with yourself, and create romantic moments. You can use the services of travel agencies or private guides or have your adventure. Some people think that owning a boat is affordable only for wealthy people, but this is not so.

Many lenders in Canada, including banks, credit unions, online lenders, and other institutions, offer loans to finance almost any dream, including owning your boat. Even if your savings are not huge, you can work with the lender's advisor to create your financial plan, allowing you to enjoy the boat you have right now rather than waiting for some far-off, unknown time in the future. Gradually repaying your loan will bring you to the moment of full boat ownership.

Let us take a moment to look at what a boat loan means for a borrower (monthly payment, secured or unsecured loan, typical loan term, total loan amount window, monthly payment window, annual percentage rate, personal circumstances, boat insurance, etc.).

Reference! Boat loans are similar to personal loans or car loans. The purpose of the loan is to purchase or trade in a boat. Boat loans have a set loan amount for which the borrower pays interest and must be repaid within a specified period.

The term and interest rate vary by lender. You can usually expect the lowest interest rate on borrowed money if your credit score is high. On the other hand, if the loan amount is high, the lender will offer a correspondingly longer term for the financing.

Boat loans also vary depending on the condition of the watercraft:

Some online and offline lenders have restrictions on boat use (e.g., recreational use only, etc.).

Before applying for a loan, consider the type of boat you want to buy and what you expect to use it for:

As you can see, different types of boats cater to your preferences, financial possibilities, and interests. Once you know which option meets your criteria in terms of comfort, safety, and maneuverability, you can find out about prices and credit terms. A boat purchase is a serious investment into your hobby, fishing job, or water sport.
Multiple lenders offer different loan products (secured and unsecured personal loans, with a down payment or without it, fixed or floating interest rate, home equity loan, etc.) for borrowers depending on their monthly budget amount.
Boat loans require more preparation than simple consumer loans, where you just get borrowed money with no restrictions on the purpose for which the funds can be used. A borrower must decide on a type of boat, find a boat dealer with an affordable price, or a seller if it is a used boat. If a vessel is used, its title must be checked and transferred to a new owner correctly.

Things to consider when deciding whether to take out a boat loan:

  1. Suppose you are interested in the best loan terms considering your financial situation, credit score, and cash flow. In that case, you need to take time to analyze or work with a loan expert who can help you compile information and work out variations for you.

  2. If you are wondering whether or not you qualify for a boat loan, you can use an example of auto loan qualifications. Usually, lenders have similar requirements, even though a boat loan is a bit more complicated.

  3. It is to a borrower's advantage if they or a financial advisor works to present the relevant financial information on their behalf. Then, if you get things in order, you have a chance to get a better interest rate.

  4. Look for offers from lenders beyond banks and credit unions. Some companies specialize in boat sales, maintenance, and financing. Their goal is to generate revenue and make boating more affordable, and they offer competitive interest rates and loan terms.

  5. You can save money on loan rates if you can afford to pay more with your own funds. And why? Because this is one of the "tricks" that allow you to get a lower interest rate and save money.

  6. With a boat loan, you can push the limits of your current financial capabilities and buy a better, bigger, newer (or brand new) boat. If you choose your boat loan wisely, you'll get affordable monthly payments and a convenient repayment plan. Some people pay off their loans early and can buy a new boat. On average, people buy a new and better boat every 4-5 years if it is their passion.

  7. With a boat loan, you can make a significant purchase and pay it off over the life of the loan. In addition, if you have a fixed interest rate on your loan, you have protected a portion of your income or savings from inflation by investing in your dream.

  8. Some lenders work with all credit scores or no credit score. If the credit terms are acceptable to you, you have the option to modify or improve your credit score and bring it into the category of strong credit. In the future, it could be beneficial if you want to apply for a bank loan or get financing from a lender that offers good terms only if you have a high credit score.

  9. Check out what additional fees your lender applies to the loan amount and how much you would have to pay for registration fees. It affects your total purchase price and is relevant to financial protection. Compare your payments with your monthly budget. The right boat means the bearable size of the loan within your budget, and also it means that you have enough cash for additional expenses.

  10. Check out sales and off-season offers for boats to get the best rates, which will help fit into the total loan amount window.

  11. Choose a convenient loan term. Getting a longer repayment term is better than overestimating your financial abilities and collapsing loan repayment.

  12. Take care of storage for your boat. It reduces your risks of losing your property or protecting it from damage.

Boat loan terms

Usually, the terms of a boat loan are the following:

Boat experience is often required because it is the bank's asset in case something happens.

Secured and unsecured boat loans

As usual, when it comes to financing a significant purchase, there are two options:

  1. Use the property as collateral for a loan and obtain a lower interest rate (since the customer risk is lower in such circumstances). A borrower can expect a higher loan amount;

  2. Obtain a home equity loan as an alternative to collateral for a newly purchased boat, using your home as collateral. If something goes wrong in repaying the loan, the risk is higher because you may lose the place where you live to cover the outstanding debt to your lender.

  3. Taking out an unsecured loan is more expensive but less risky because the boat will not be seized if you default, and you will enjoy being the full owner (sell the boat if you wish without asking the bank for permission). However, if you default on your repayment obligation as stipulated in the loan agreement, you still run the risk of a lawsuit being filed against you and incurring high costs to collect the debt.

  4. Apply for a personal loan or line of credit and use the money to purchase the boat; in this case, you do not need to make a down payment or meet other strict requirements (boating experience, etc.).

What is a boat loan calculator?

A boat loan calculator is usually an online tool that allows you to convert your boat purchase ideas into loan costs. It also compares your financial capabilities and current situation with the desired purchase. It would either be a promising result or perhaps a cold shower. Still, it is vital to see the accurate picture without risking your credit score and financial future.

A boat loan calculator has formulas in its algorithm and allows you to avoid tedious calculations and human errors in math.

Why do you need a boat loan calculator?

A boat loan calculator can not replace a loan financial advisor because it usually can not analyze your credit score and incoming financial situation, but it can:

  1. Perform the calculations in your place;

  2. Present the calculation results in a convenient form (graph, table, etc. without any extra work for you);

  3. It works 24/7, so you can go online anytime and test as many scenarios as you want;

  1. It shows the approximate loan cost and monthly payment;

  2. It can help you compare different loan products or lenders;

  3. It enables you to structure your questions to the lender before you sign the loan agreement;

  4. It provides the information you can discuss with your partner, co-buyer, family, etc.

  1. It gives an approximate repayment schedule;

  2. It reminds you of additional payments and cash needed to complete the purchase transaction.

All the benefits of using a boat loan calculator depend, of course, on the calculator and the number of features it offers.

Note: The results received during the calculation do not mean pre-approval or commitment of the lender to disburse such loan to you. It can be used for informational purposes only.

How to use a boat loan calculator

    Typically, you will be asked to enter the following:

    How to compare lenders using a boat loan calculator

    This task can be done either manually or with the help of a loan calculator. The loan calculator can be a simple calculator or a loan comparison calculator.

    If you use the lender's boat loan calculator, you have the advantage that some data is already in the system, and you only need to select variants from the drop-box.

    Suppose you know the interest rates and other loan details of various competitors. In that case, you can use any boat loan calculator and just enter the relevant data as often as you like.

    Take the results of your calculations and see which loan would cost you less, what lender allows you to have a better repayment schedule, and whether there are no preterm repayment penalty fees.

    What is the average interest on a boat loan?

    Lenders offer varying interest rates from 3% to 30% or more. Under these market conditions, the average interest rate is 17.7%. This only gives a general idea of the interest rate you will have to pay on your boat loan. The cost of the loan depends on your credit history. The higher your credit score, the lower the interest rate you can expect to pay. Conversely, the lower your credit score, the higher the interest rate you can expect to pay.

    If you have a good to excellent credit score, an interest rate of less than 10% is realistic. However, you should ask your lender for exact figures and get information concerning the total cost of your boat loan.

    What credit score is required for a boat loan?

    According to open sources, boat loan lenders prefer to fund borrowers with excellent and good credit scores. This means no less than 650 units. However, loan applications are reviewed on an individual basis, and many factors are taken into consideration when granting a loan. One of them is your previous experience with boats. If you have this, you may be considered a less risky borrower.

    Some lenders are willing to work with a credit score of less than 600. So if a boat is your dream, do not give up and keep looking for financing options from lenders.

    How many months is an average boat loan?

    Open sources show boat loans are disbursed between less than six months and up to 144 months. The average loan term is five years. It depends on your financial situation, the price of the boat, and a favorable repayment pace that will allow you to service your loan and repay it without compromising your budget.