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4 Notable Factors That Affect Boat Financing Terms

Apr 18, 2022 | Blog

So you want to buy a boat but you’re having trouble with financing it. This is completely normal as not everyone is knowledgeable when it comes to boat financing. However, it’s important that you know that your lack of knowledge can lead to you making mistakes that will hurt both your short-term and long-term finances. Considering how important this is, we thought it would be useful to put together a brief article discussing boat financing terms and what you need to take into consideration when taking a loan out to buy a boat. If this is something that you want to learn more about, read on for three notable factors that affect boat financing terms.


While it may seem like getting a loan that has a longer-term, do know that it doesn’t come without drawbacks. Be aware, however, that the term of your loan can affect those other variables we mentioned earlier. If you double the length of your loan, for example, a lender will likely want either a slightly higher interest rate or a down payment that’s a higher percentage of the boat’s value. There are also other factors that lenders may consider when determining the term of your loan.

Loan Size

The size of a loan has an important impact on how long a lender will be willing to stretch the loan. If you apply for a loan, most lenders will want to see that you have enough income to support the loan. As a general rule of thumb, the larger the loan is, the longer it can be financed. Take note that many lenders will have minimum income requirements for people applying for loans.

Type of Boat

Modern powerboats can be lumped together, but there are some vessels that will be treated differently by lenders. For example, boats that have a wood hull or high-performance boats may be treated differently. Some lenders will also differentiate between sailboats and powerboats, while others will also consider multi-hull boats and pontoon boats differently.

Age of the Boat

The age of a boat affects the term length that’s acceptable to a lender. As a rule of thumb, the newer the boat is, the longer you can get a loan. Some lenders put a cap on how old a boat can be to even consider when making a loan, and others deal with recent models only. When buying used, you have to keep in mind that other loan requirements might also be different. Many lenders have higher minimum loan amounts or different finance rates for boats built prior to a specific model year.


We hope this article proves to be useful when it comes to helping you gain a better understanding of boat financing. As you can see, there are a slew of different things you have to consider as they can be quite impactful when it comes to your loan terms. Be sure to keep everything you’ve learned here in mind so that you can make the most informed decisions that will help you get the best deal possible.

Canada Powersports Financing offers you the financial power to help you get moving. We help finance ATVs, RVs, Snowmobiles, Dirt Bikes, Jet Skis, 4-Wheelers, Boats, and more. If you’re looking for Canada’s best boat loans and want to learn more about boat financing, reach out to us today!

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