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Is It Possible to Get a Mortgage for a Boat?


Like car loans, there are also boat loans where you can apply for a specific loan amount and be required to pay premiums within a certain time. You can apply for a boat loan through credit unions, marine finance companies, boat dealers, and commercial banks. Boats tend to be more expensive than vehicles, implying that boat loan amounts are often higher and the loan terms are much longer. Boat owners usually pay up to three times more for boat insurance than car owners and traditional homeowners. The amount you will pay to finance your boat depends on a number of factors, such as the type of boat, the loan terms, your credit, the type of loan, and your down payment. To secure your boat mortgage, you have the option of directly going to a boat mortgage provider or any other money lending facility. Here, your lender will tell you the amount of money you are qualified to borrow. Mortgage lenders do not consider houseboats as property since they have no fixed address and are easily susceptible to losses. That said, there are very few boat mortgage lenders that provide this type of marine finance. In this post, we will help you determine if it is possible to get a mortgage for a boat.

Factors to consider before applying for a boat loan

When applying for a boat loan, you must fill out the Online Loan Application. Here, the lender will review a number of factors to determine if you are eligible to apply for a boat loan. Like with standard mortgages, your boat mortgage lender will have several eligibility criteria that you will need to pass before the loan is approved. According to Marine Finance, below are some of the critical factors that will be considered when applying for a boat loan:

1. Overall costs of owning a boat

When calculating your boat budget, you are advised to include the additional costs beyond monthly payments for your boat loan. You should factor in expenses such as; boat towing, land storage, insurance, taxes, slip fees, fuel, taxes, and winterizing.

2. Your credit

Some loan lenders can offer a boat loan to borrowers with subprime credit, but they will still require you to pay a down payment and have a low debt to income ratio. You should note that if you have lower credit scores, you are more likely to be offered an increased interest rate compared to one with an excellent credit score.

3. Your age

Most loan boat lenders usually have a maximum age limit that is considered before one's loan request is approved.

4. Whether you will need a marine survey

When applying for a secure boat loan, the total boat's value will heavily factor in the amount of money you are qualified to borrow. During a marine survey, an inspector will first examine your boat, trailer, and engine. Your boat's condition will also be detailed, note any needed repairs, and finally determine if your boat is safe to use on the water.

5. Your deposit

Boat mortgages are usually available at up to 75 percent of the total boat's value, but if you leave a larger deposit, you will find it much cheaper and easier to secure a boat loan.

How do you apply for a boat loan?

According to Mortgageloan, applying for a boat loan is similar to applying for a car loan or personal loan. The first step is to find a reliable boat loan lender or apply for a loan online. You will be required to provide some important information such as the purchase price of your boat, type of boat, age of the boat, loan amount, employment information, and other personal details about your assets and liabilities. As mentioned above, your loan lender will consider a number of factors, such as your credit score, age, cost of your boat, etc., to determine if you are eligible for the requested loan. Once all of these factors have been checked, you will wait for approval, which usually takes about one business day or even a few business days depending on your boat loan lender.


1. Is the interest on your boat mortgage deductible?

Many new boat owners are unaware that, like a home mortgage, you can deduct some of your boat's interest payments. However, to be eligible, your boat must have a bathroom, kitchen, and sleeping quarters. There are also some limitations on how you can deduct your boat mortgages and use them to bring in revenue.

2. How can I get a Boat Loan if I Have Poor Credit?

Compared to auto loans, there are higher credit standards for boat loans since they are considered luxury commodities. For boat loans, the lower your credit score, the more difficult it is to qualify for a boat loan. If you failed to secure a boat loan from one lender due to a poor credit score, you can still apply for another loan with another and probably secure a boat loan. You should note that a low credit score can lead to increased boat loan interest rates.

3. Are the drawbacks of securing a boat loan with your home as security?

According to Moneyfacts, the major downside to borrowing a loan against your home's equity is that you will be required to pledge your house as security for the loan. Like with traditional mortgages, if you fail to meet your premium payments, the lender is legally allowed to have full ownership of your home. That said, you should only use your home as loan security if you are confident you will meet the necessary payments on time.

Final Thoughts

At times, securing a boat loan can be very challenging; thus, you may need to consult with a reliable mortgage broker. Mortgage brokers are governed by the Financial Conduct Authority and are required to meet some specific qualifications before they can give any of their clients' mortgage advice. A well-experienced mortgage broker will work closely with you to help you achieve your financial goals and advise you on better and more profitable ways of using your boat loans.

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Dana Hanson

Written by Dana Hanson

Dana has extensive professional writing experience including technical and report writing, informational articles, persuasive articles, contrast and comparison, grant applications, and advertisement. She also enjoys creative writing, content writing on nearly any topic (particularly business and lifestyle), because as a lifelong learner, she loves to do research and possess a high skill level in this area. Her academic degrees include AA social Sci/BA English/MEd Adult Ed & Community & Human Resource Development and ABD in PhD studies in Indust & Org Psychology.

Read more posts by Dana Hanson

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