We are often asked - What do I need to get a Boat Loan?
For those of us who are married or in a relationship the first challenge can often be getting the "green light" from your partner… in many cases this can be the hardest hurdle to overcome.
Once promises have been made and the go ahead has been given the next step is to either find your dream boat or get a preapproval by making an application and supply the supporting documents to the Bank, Financier or Licenced Finance Broker.
A preapproval can give you the confidence to negotiate as great deal as the dealer or seller know you are a serious buyer.
If you have recently applied for a loan for personal purposes you may have thought at the time, the only question you didn't have to answer was what you had for breakfast that morning!
The reason for this is the National Consumer Credit Protection Act 2009 which regulates the way Banks, financiers and finance brokers process and assess finance applications to meet their responsible lending guidelines under their Australian Credit Licence.
In a nutshell they need to make sure they make reasonable enquires to ensure that the proposed loan is "not unsuitable" for you and satisfies your specific needs and objectives.
A large part of responsible lending is making sure you can afford the repayments, to do this you will not only be asked about your income and details of your expenses but also to supply documents to confirm this information. This maybe in the form of Payslips, Tax returns, Bank Statements etc.
So don't be offended when asked for this information.
In addition to responsible lending obligations a Bank or Financier will have their own credit guidelines.
These could include, the age and type of the boat, are you buying through a dealer or private sale, your previous credit history, your stability in job and residential address and asset position.
This information will determine if they will approve the application and if so what conditions - eg the term, repayments, deposit required.
So, should do you go directly to a Bank or use a Finance Broker?
A bank can only offer their own products and let you know about their credit guidelines, would they tell you that another bank has a better deal?
A good Finance broker will have a panel of lenders and know their various products and credit guidelines taking the guess work out of which lender would be the best fit for you.
Our tips to getting a fast Boat Loan Approval:
- Know your repayment budget
- For a preapproval - have an idea of the type of boat and price you want to buy
- Have your supporting documents ready to send if needed - last 3 payslips, 3 months bank statements, tax return
- If you are self employed get your financials up to date including your personal tax return
- Have Your ID available - Drivers Licence, medicare card or passport
The faster you produce the supporting information the faster you will get onto the water.
Our experienced team at Credit One are happy to discuss any questions you may have regarding your personal circumstances and obtaining that Boat Loan or getting a preapproval in place.
We are also agents for Club Marine Insurance.