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Compare boat loans

Get a boat loan and sail out on the open water sooner than you think.

If you’re looking to purchase a boat but need a little help covering the costs, there are many different financing options available for you to consider. One such option is a personal loan, which offers long loan terms, competitive interest rates and affordable repayments.

Read our guide to learn how to find the best boat loan for your financial situation.

Motusbank Personal Loan

Motusbank Personal Loan

From

5.15 % p.a.

rate

  • Borrow from $5,000
  • Free online loan quote
  • Quick application process

Motusbank Personal Loan

Apply today to get approved for a personal loan up to $35,000.

  • Max. loan amount: $35,000
  • Loan term: 1-5 years
  • Turnaround time: N/A
  • APR: From 5.15%
  • Fees: None
  • Fixed or variable interest rates
  • Available for all Canadian residents excluding Quebec
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How does a boat loan work?

A boat loan can usually be one of the following:

  • A secured personal loan that is designed to specifically finance a boat.
  • A more general secured loan that allows boats to be used as collateral.
  • An unsecured personal loan with no collateral.

Boats can be expensive, so you will find these loans offer larger loan amounts and may give you longer repayment terms than loans used for other purposes. If you’re looking for a competitive interest rate, you may want to consider using the boat as security for the loan.

Compare lenders to finance a boat purchase

Name Product Min. Loan Amount Max. Loan Amount APR Fees Loan Term Min. Credit Score
$500
$20,000
26.99% - 39.99%. Varies by loan type and province
Varies by province
6 months - 5 years
550
Fairstone offers small to medium personal loans up to $20,000.
$5000
$30,000
19.99% - 23.99%. Varies by loan type and province
Varies by province
3 - 10 years
550
Fairstone offers secured personal loans up to $30,000.
$2000
$35,000
5.9% - 45.9%
NSF fee - $20 to $48
2-5 years
540
Mogo offers loans up to $35,000 on flexible terms.
$2000
$10,000
18.9% - 54.9%
None
1-5 years
550
An established online lender with loans up to $10,000. Now accepting applicants on El and Social Assistance.
$5,000
$35,000
From 5.15%
None
1-5 years
N/A
Motusbank offers personal loans up to $35,000 for all Canadian residents excluding Quebec.
$5,000
$35,000
From 5.65%
None
N/A
N/A
Motusbank offers line of credit loans up to your approved limit for Canadian residents excluding Quebec.
$1,000
$15,000
46.93%
None
Term of loan will vary by product
N/A
Borrow up to $15,000, based on your income and credit history, with a personal line of credit from LendDirect.
$2000
$10,000
43% (British Columbia and Ontario) and 34.9% (Quebec)
None
1-5 years
N/A
LendingMate offers loans to Canadians with poor credit with no credit checks.
$1,600
$25,000
9.47% - 20.07%. Varies by loan size (excluding Quebec)
Origination fee: $250 - $1,000 depending on loan size
3-5 years
N/A
A loan that you repay before gettּing access to the funds. Enjoy no upfront fees and a low interest rate.
$100 (in store), $500 (online)
$10,000
46.93%
Vary across provinces/territories
6 months - 5 years
N/A
Cash Money offers installment loans up to $10,000 for BC, AB, SK, ON and NS residents.
$100 (in store), $500 (online)
$10,000
46.93%
Vary across provinces/territories
6 months - 5 years
N/A
Cash Money offers line of credit loans up to $10,000 for BC, AB, SK, ON and NS residents.

Compare up to 4 providers

How can I compare boat loans?

Finding the right financing for your boat is important. When you’re comparing your loan options, keep the following questions in mind:

  • What is the interest rate?
    The interest rate for this type of loan varies depending on the provider you choose, but rates for secured loans are generally lower. Make sure you select a loan with a competitive interest rate that will help you save money in the long run.
  • Are there fixed repayments?
    Some boat loans offer fixed repayments. It’s important to think about whether you want fixed repayments or if you prefer a variable rate loan to take advantage of market fluctuations.
  • What is the loan limit?
    The maximum amount of your loan also varies with providers. Have in mind a rough estimate of how much money you need to borrow and find a boat loan that meets these needs. Don’t borrow more money than you actually need since you’ll pay interest on the amount borrowed.
  • How long will your loan term be?
    Choose your loan term by figuring out how much you can afford to repay each month. Do your calculations to figure out how long it’ll take to pay off the amount you want to borrow with the annual percentage interest rate (APR) you might qualify for.
  • Is the loan secured or unsecured?
    Boat loans can be secured or unsecured, so consider which loan type better suits your financial situation. A secured loan is risky since you can lose the collateral if you don’t make your repayments, however you can usually get a lower interest rate than with a secured loan.
What kinds of rates and terms can I expect?

Boat loans are usually personal loans, meaning rates start at around 4% and increase to 36%, sometimes higher. Will you actually qualify for that 4% APR? It’s not likely. Only those with an absolutely stellar credit history, six-figure income, low debt-to-income ratios interested in borrowing large amounts can qualify for the lowest rates.

For borrowers with a good to excellent credit history, rates will likely sit around the 9-12% mark.

Lenders will likely offer terms from one to seven years, depending on the value of the boat, however if the boat is worth a lot, you may find terms up to 20 years. A 20 year loan will mean you pay a lot in interest, so be aware of this before you sign on the dotted line.

What to expect from a personal loan

How much does a boat cost?

It’s important to understand the cost of a boat, and the on-going costs, before you apply for financing.

  • The boat purchase. The actual cost of a boat varies greatly depending on which type you select. You could expect to pay anything from $25,000 for a new motorboat and well over $1,000,000 for a new yacht.
  • Boat equipment. Consider the costs of decking out your boat. Electronics, water toys, accessories and safety equipment could set you back $1,500 or more.
  • Operating costs. This cost will also vary depending on the type of boat you choose and also how you use it.
  • Boat maintenance. You will be stuck with a higher maintenance cost the older your boat is and the less you take care of it yourself. You can slow down wear and tear, for instance, by washing the hull with fresh water after taking your boat out.
  • Storage. Mooring fees are usually calculated by the length of your boat and will increase if you store it in a high traffic area or popular area.
  • Boat insurance. Depending on the type of boat you have and where you store it, insurance can cost anywhere from $300 to $500 usually. Keep in mind you may not need insurance in your province or territory, however the marina you store your boat at may require you to have insurance.

What are the benefits and drawbacks of financing a boat purchase?

Pros

  • Specialized loans. While some loans are standard secured personal loans that allow boats as security, there are other options available that are specially designed to finance a boat or vehicle.
  • You could get fast loan approval. Loans usually have a quick turnaround time once you complete the online application. The application process is relatively easy and you can have the finances for your boat within one to ten business days.
  • Access to competitive interest rates. Some boat loans have competitive interest rates available which tend to be lower than other credit options. If you know that you specifically need a loan for a boat, a boat loan is a great way to potentially save money.

Cons

  • Large loan amounts are required. Boats are usually quite expensive and that translates to a larger loan amount. Make sure you choose a term that keeps your monthly repayments affordable.
  • Can’t use a secured boat loans for costs other than the boat itself. You need to consider ongoing boat maintenance, boat insurance, marine equipment and storage fees as well as the cost of the boat. These costs usually cannot be added to a secured loan since the loan may likely have to pay off the cost of the boat only.

What types of boats can I finance?

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Is there anything to avoid with boat loans?

Before applying for a loan, consider the following:

  • Unlicensed credit providers. Signing up for a loan with an unlicensed provider is a dangerous mistake. There are plenty of scams operating in the online world, so be sure the lender you choose is legitimate and licensed to operate.
  • Getting into a debt spiral. Getting buried in debt can be an easy thing to do once you start borrowing money, especially if you have multiple debts. Make sure you know your limits and seek help if you are having trouble with repaying your debt.
  • Deals that seem too good to be true. If you find a deal online or otherwise that’s in a different league than the competition, do some poking around – it could be the sign of a scam.

How to apply for a boat loan

Once you’ve compared a variety of lenders offering boat loans, head to the specific lenders website to begin your secure online application. Some lenders may additionally allow you to apply over the phone or in person if they have physical stores. You will need to make sure you meet the eligibility criteria and have the necessary documents on hand to apply. The process usually takes less than ten minutes.

Eligibility requirements

These may vary from lender to lender, however you will usually need to:

  • Be 18 years of age, or the age of majority in your province or territory
  • Be a Canadian citizen or a permanent resident with a valid Canadian address
  • Have proof of an income
  • Meet any credit score requirements
  • Have a working bank account
  • Meet any income requirements

Required documents

You will need the following documents on hand when applying:

  • Personal details like your name, address, Social Insurance Number (SIN), phone number and email.
  • Income details including pay stubs or bank statements.
  • Employment details including your employer’s name and contact details.
  • Banking information like your bank’s name, address and transit number, as well as your personal bank account number.

Looking to finance a jet ski instead? Learn more in our guide.

Frequently asked questions

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