Boat finance applicants often have concerns about whether they can get approved for a loan. Understanding lender requirements and the approval process can be confusing for many. Especially if it’s your first time going through the process.
Each financier will have their own lending criteria. Fortunately, there are some steps you can take to maximise the chances of getting your loan approved with any lender.
Of course, you should be aware of basic lending criteria before applying. You will need to be at least 18 years of age. And you will need to be an Australian resident when applying for finance in Australia.
Assuming you meet the basic, essential criteria, following the tips in this article will give you the best chance of an approval on your loan!
If you’re planning to apply for boat finance soon, try not to switch jobs. Lenders tend prefer stable applicants who have been in their job for at least six months. An applicant who has only just changed jobs will be viewed as higher risk. This could affect their chances of being approved by the lender.
But if you can demonstrate a history of stable employment in your finance application, the lender will be more comfortable approving you for the loan.
You should also be aware, that even if you have received pre-approval on your boat loan, it’s still recommended that you don’t switch jobs yet. A pre-approval is conditional and the lender may withdraw their pre-approval if your financial circumstances (including employment) changes before you purchase the boat.
When you submit a boat loan application, you may be asked to provide up to 90 days of bank statements. If the lender sees any dishonours, missed payments, late payment fees etc, this will compromise your chance of being approved for the loan. A lot of gambling expenses on your bank statements is also looked at unfavourably by lenders.
Try to keep your bank statements clean leading up to your application. Maintain a healthy balance in the bank, try to put some extra money away. This will show the lender that you’re responsible with your money and will be able to make repayments.
If you apply for finance directly through a bank or another lender, you will only have access to a very limited number of loan products. It’s hard to know if you’re getting the best deal on the market or if you even meet their lending criteria.
The alternative is to apply through a finance broker like Credit One. They will be able to compare your options from their extensive panel of lenders, to find you the best deal available. They will also make sure that you meet the lender’s criteria, so you can be confident that your loan will be approved.
Having a good broker on your side can also save you a lot of time by finding the best deal for you and assisting with the submission of your application.
Keep in mind that not all brokers are the same. You should choose a broker that has a strong reputation and check their Google reviews to make sure other clients were happy with the service.
It’s important to consider how much you can afford to borrow. Add up your current expenses and look at what you have left over after those expenses. You may be able to cut back on some of those expenses but it’s important to be realistic.
Also consider any other upcoming events that may impact your financial circumstances.
If you apply through a broker, they will be able to guide you through this and give you an accurate repayment figure. This means your application will be more likely to meet the lending criteria.
Credit One is Australia’s best rated finance brokerage, with over 1000+ Google reviews and an average rating of 5 stars. Begin an enquiry on the Credit One boat finance website to get a free quote and speak with a marine finance expert. Once you have an idea of what you can afford in repayments, you can a boat finance repayment calculator to work out how much you could borrow.