FAQs

The amount an individual or business will be able to borrow will depend on your borrowing history as assessed by the lender.

No. Securing a boat with chattel mortgage is a financing option for a marine product intended predominantly for business.

Chattel mortgage is a form of financing predominantly for business use where the moveable goods are used as collateral for the loan.

Chattel mortgage boat financing has a variety of benefits that contribute to its advantageous financing reputation. These benefits include:

• Competitive interest rates
• Flexibility in repayment terms
• Tax benefits
• Potential for GST credits
• Depreciation claims.
• Security
• No down payment

If you are unable to make your repayments on your boat chattel mortgage according to the terms of the agreement, the lender has certain rights and could potentially repossess the asset. The lender will then sell the goods to recover the money they are owed.

Most boat chattel mortgage agreements will allow you to repay the loan amount early. However, depending on your agreement, there may be fees associated with early settlement.

With a secured boat loan, like a boat chattel mortgage, the product you are purchasing will be used as collateral for the loan. Because the boat is tied to the loan, the loan is ‘secured’ and is considered to be less risky for the lender because they can reclaim the asset if the terms of the loan agreement are not met. In short, a secured loan requires you to provide collateral to the lender which, in the case of marine financing, could be the boat itself.

When completing the application form for a boat chattel mortgage, it’s important to provide your lender with the following information:

• Business owner proof of income
• Identification
• Details about the boat intended to be purchased

Both businesses and individuals are able to apply for a boat chattel mortgage as long as the marine product is predominantly intended for business use.