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How to Increase Your Chances of Getting Approved for a Boat Loan

Getting a boat loan is similar to applying for a car loan in that they both have such options as low-interest loans as well as short-term and long-term loans. There are options including hire purchase and refinance, too.

If you are a first-time applicant for a boat loan, you are likely overwhelmed by the complexities of the process. The good news here is that our experts from RPM Finance are sharing some tips that can help you go through your boat loan application and get approved:

Be Prepared with Honest Answers

The first step is to be prepared with honest answers to the questions you will be asked during the application process. Be upfront about your employment history, income, debts, and other financial obligations. Lenders need to know this information to assess your ability to repay the loan.

Know What You Can Afford

Knowing what you can realistically afford when considering a boat loan is essential. Remember the ongoing costs of owning a boat, such as mooring fees, insurance, and maintenance. These costs can add up, so make sure you factor them into your budget when calculating what you can afford to repay each month.

Get Pre-Approved

One of the best ways to help boost your chances of getting approved for a boat loan is to get pre-approved. This means that you will have already gone through the process of applying for a loan and been approved for a certain amount. Then, when you apply for your boat loan, the lender will already have an idea of what you can afford and will be more likely to approve your loan.

Give the Lender More Reasons to Approve Your Application

You already know that the lender will thoroughly check your capacity to repay your loan. This is why you must show evidence that you have a consistent income, sufficient savings, and even proof of investments. You should declare such assets as your home, car, and others.

Get a Co-Signer

Among the things you can do is to get a co-signer. A co-signer is someone who agrees to back your loan, which essentially means they’re on the hook for the payments if you can’t make them. This can be a family member, friend, or anyone with good credit willing to help you out.

Having a co-signer makes you a more attractive candidate for a loan, as it shows the lender that you have someone else who is willing to vouch for you. This can increase your chances of getting approved or a lower interest rate.

Make a Bigger Deposit

It’s no secret that one of the best ways to get approved for a loan is to make a large deposit. The bigger the deposit you make, the lower the risk is for the lender, and the more likely you’ll be approved for a loan.

If you’re looking to get a boat loan, experts say you should aim to make a down payment of at least 20%. This will show the lender that you’re serious about the purchase and have the financial means to make the monthly payments.

Conclusion

If you’re looking to finance a boat, it’s essential to understand the process and what asset finance lenders will be looking for. Applying for a boat loan is similar to applying for a car loan, but there are a few key differences. Make sure you are prepared to put down a substantial down payment. Get pre-approved and consider having a co-signer, too. With the right preparation, you can be on your way to enjoying the open water in no time.

RPM Finance offers the best asset finance solutions in Australia. Contact us today to get a quote and learn more about our loan solutions!

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