Submitted by admin on Sat, 05/14/2016 - 03:41
A boat of your dreams is a symbol of both financial wealth and personal independence. It's freedom to roam the vast seas, explore tourist-friendly islands, and relax under the warm embrace of the Sun. But what if you don't have the entire cash amount to put down for a boat or you have bad credit lines that restrict you from getting a good loan from a Canada-based bank? Here are things you should know about when it comes to getting a boat loan.
Financing With Good Credit
Assuming that you have good credit scores, boat financing is much simpler. But what is considered a good credit range? Basically, at least 650 is considered a fair score. Those with 750 and above are given an excellent credit rating. The sweet spot is around 700 to 749. Bear in mind that there are various scoring models and resulting scores provided by lenders.
Consider Marine Financing
Marine financing is perhaps the most sought after choice for a myriad of reasons. For starters, a local dealership will usually already have some sort of arrangement with third-party financiers, which in turn has access to multitude lending firms and usually at a dealer finance center grade. This is a level beyond the products and services made available to the public. Dealer finance centers have what's known as computer approved loans, which basically mean there is no personal interaction between bank employees and customers thus keeping rates at a minimum.
Consider ROI-Generating Boats
While boating is an absolute pleasure, it's not something most boat owners do on a daily basis. Many vessels are kept floating around all day at the marina. Look for boats that can earn you income on the side. This can help offset interest rates accumulated from the loan. You basically put the boat to work whenever you are not using it and collect the profits on your account.
Newer Versus Older Boat
Should you finance old or new boat loans Canada? The answer will depend on your ability to get pre-approved by your bank and the specific amount you are eligible to borrow. It's highly possible that a newer boat will actually have better financing terms despite the whopping price tag attached to it. The reason behind it is that a boat that's only a few years old will have a more protracted amortization period relative to an older boat.
Canada's pristine waters await you and your boat. And while the financing and legal matters are complex for average Joes like yourself, it can be made much simpler with the guidelines aforementioned above. Take the time to process everything before consulting with a bank representative.