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Average Boat Loan Term: How Long Can You Finance a Boat in Canada?  

Dec 5, 2023 | Boat Loans

Exploring your boat financing options by calling (343) 307-4958.

Many Canadians dream of owning a boat, and financing makes boat ownership a reality. While plenty of factors go into boat financing, have you ever wondered about the average boat loan term in Canada?   

As Canada’s premier boat finance experts, we’ll discuss how long you can expect to finance a boat in Canada.  

Boats Hold Their Value  

Boats hold their value very well. That said, financing institutions with specific boat loan programs will have longer average boat loan terms than loans for other types of motorized equipment or personal loans.  

Boat Loan Guidelines  

When pulling a loan for a boat purchase, keep the following guidelines in mind:

  • New boats have boat loan terms of up to 20 years, but you may opt for a shorter loan repayment period.  
  • Used boats often have loan repayment periods of up to 20 years minus the boat’s age. For example, in 2023, a 2019 bowrider would likely have a maximum loan term of 16 years (20-4).  
  • The average boat loan term you qualify for depends on several factors, including your credit score, the down payment (and/or trade), the total loan amount, and the prevailing prime lending rate at the time of application (Interest rates depend on the lender.)  
  • Your lending institution or credit union may consider your debt-to-income ratio during the loan pre-qualification period.   
  • Some boat dealerships will work with independent or third-party brokers, while others will have in-house financing departments. Although each option has its pros and cons, loan brokers often have access to better rates because of their relationships with multiple lenders and the overall volume of business. 
  • Most boat loans are “open”, so after the initial hold period of a few months, you can repay the loan partially or fully with no restrictions.  
  • You can usually make payments weekly, bi-weekly, or monthly.  
  • Unsecured loans typically have a higher interest rate than secured ones.  

Factors To Consider When Financing a Boat  

You must handle a boat loan responsibly to avoid debt-related issues or financial ruin. Before applying for any form of boat financing, consider:  

  • The down payment  
  • The interest rate  
  • Your periodic payments  
  • The boat loan term  
  • Additional fees  

Don’t forget to factor upkeep and maintenance costs into your budget. Most boats, especially large ones, require general maintenance and care throughout their life. You’ll have to invest in prompt repairs and pay to dock or store it at a marina.   

Additional costs include fuel and insurance, as well as proof of competency fees. 

Bottom Line  

Overall, the average boat loan term ranges from five to 20 years. Offering a decent down payment allows you to receive good loan conditions and shorten your repayment period.   

Call Us for Good and Bad Credit Boat Financing  

Getting flexible and affordable boat financing starts with partnering with a dependable institution.  

At Canada Powersports Financing, we offer affordable boat financing with favourable terms to all Canadians. Call (343) 307-4958 today to get pre-approved for financing or more information on the average boat loan term in Canada.   

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