Most banks cap boat age around 10–15 years, while specialist marine lenders may go to 20–30+ years if the vessel is in good condition and has strong documentation. Older boats usually mean higher deposits, shorter terms, and stricter checks like a marine survey.

Depending on the age of the vessel, typically, the older the boat, the smaller the options available. Traditional banks and many other prefer new or close to new boats for finance. Specialist marine finance lenders provide more flexibility in terms of rate and vessel age. In cases where a lender won’t approve a older vessel, a personal loan may be the best option.

Marinewise works with experienced experts in the marine finance space and can help provide the best options to ensure the lowest rate and approval for older boats. Check rates and eligibility quickly here.

Expect a 10–20% deposit for most used boats. Lenders use the loan-to-value ratio (LVR), which compares the loan against the boat’s market value. A bigger deposit lowers risk, may unlock longer terms, and can help with approval if the boat is older or has limited history.

Used-boat finance usually attracts slightly higher rates than new boats because of condition and resale risk. Terms are generally 3–7 years. Rates depend on your credit profile, deposit, boat age/condition, and the lender type. Always compare the comparison rate (interest + fees) for the real cost.

Don’t get sucked in to the low advertised rates that many brokers or marine dealers advertise, often times its just sales tactic to get you into the door.

Age and Condition of the Boat
Many lenders have restrictions on financing older boats, typically setting a cut off around 10–15 years. Boats older than this or in poor condition (e.g., with structural damage or major repair needs) may be deemed too high-risk, leading to a decline in financing.

Boat Type and Intended Use
Banks may avoid lending for certain types of boats, such as houseboats, high-performance speedboats, or heavily customized vessels, due to the niche market and higher depreciation. Intended use, such as commercial fishing or live-aboard purposes, might also impact the loan eligibility since it increases wear, affecting resale value.

Lack of a Comprehensive Inspection or Valuation Report
Lenders often require a professional marine survey or valuation to assess the boat’s value. Lenders may decline a loan if the boat doesn’t pass the inspection or if a thorough report is unavailable.

Unclear or Insufficient Ownership History
A used boat with an unclear ownership history may raise red flags for lenders. Lenders may decline the application to avoid complications in ownership transfer if the vessel has outstanding liens or debts attached (shown on the PPSR).

Applicant’s Credit Score and Financial History
A low credit score, history of missed payments, or other negative marks on a credit report can be a primary reason for loan rejection. Lenders want assurance that borrowers have a stable credit history and are likely to make timely payments.

High Loan-to-Value (LTV) Ratio
If the applicant is seeking a loan that exceeds the lender’s LTV limits for used boats (typically around 70-90%), the application might be declined. Used boats generally have lower LTV thresholds to account for faster depreciation, so a high loan request relative to the boat’s value is often rejected.

Debt-to-Income Ratio
A high debt-to-income ratio (the amount of monthly debt payments relative to monthly income) can indicate to lenders that the borrower may struggle to manage additional debt. If the DTI ratio is deemed too high, the application is likely to be declined.

Lack of Down Payment
Most lenders expect a down payment on used boats, typically between 10-20%. A lack of sufficient funds for a down payment can signal to lenders a higher default risk, leading to a decline.

Employment Instability or Insufficient Income
Lenders assess income stability and employment history. If the borrower has recent job changes, irregular income (especially for self-employed individuals without tax records or proof of regular cash flow), or income that doesn’t adequately support the loan payments, the application may be declined.

Negative Marine Survey Findings
Issues such as hull damage, engine problems, or potential safety hazards noted in a marine survey can cause lenders to reject the application. Lenders prefer to finance boats in good condition, as a poorly maintained boat might lose value faster or require repairs, which could impact the borrower’s ability to repay. In addition, if a boat has been modified from its original state, this can affect loan approvals.

Insurance Availability and Cost
If the boat cannot be insured (either due to condition, age, or lack of insurable documentation), lenders will typically decline the loan. Comprehensive insurance is often required as a condition of the loan, as it protects both the borrower and lender’s investment.

Market Liquidity and Resale Value
Lenders assess the ease of resale in the event of repossession. If the vessel type is niche, rare, or difficult to sell, lenders may view it as a risk and decline the loan.

Existing Debts on the Boat (PPSR Check)
The presence of any pre-existing debt or lien registered on the PPSR against the boat can lead to immediate rejection. Lenders avoid the risk of legal complications from outstanding claims against the boat.

Purpose or Usage
If the boat is intended for high-risk activities (e.g., racing) or if the borrower intends to use it commercially without specific business income to support it, lenders may reject the loan.

Both are possible. Dealers usually make things smoother (paperwork, warranties). Private sales can also be financed but lenders often require:

• A marine survey (condition report)

• A PPSR check to confirm no finance is owing

• Proof of ownership and service history

Yes to both.

• PPSR (Personal Property Securities Register): confirms no outstanding loans or encumbrances on the boat or trailer.

• Marine survey: often required for older or privately sold boats. A qualified surveyor checks hull, engine, electrics, and safety gear—protecting both you and the lender.

You’ll generally need:

• Proof of ID and income (payslips or tax returns if self-employed)

• Boat details (make, year, HIN, engine serials, hours)

• Purchase agreement or sale contract

• PPSR results

• Survey/valuation report (if required)

• Proof of insurance before settlement

Tip: Many buyers get pre-approval so they know their budget before shopping.

Often yes. Trailers, electronics, and safety gear can be rolled into the finance amount if the lender is comfortable with the valuation and LVR. Keep receipts itemised to make the process smoother.

In most cases when purchasing privately, the trailer is already included into the price of the boat that is being sold – always double check.

Missing history makes finance harder—lenders may require a bigger deposit or decline altogether. Repaired write-offs are very difficult to finance or insure. Always get a survey, PPSR, and negotiate price accordingly if history is patchy.

Yes. Most lenders if not all will require proof of comprehensive boat insurance before releasing funds. Insurance must match how you’ll use the boat (inshore/offshore, recreational/commercial). Premiums rise for older or imported vessels, so get quotes early.

Alternatives include:

• Unsecured personal loans (higher rates, fewer boat restrictions)

• Home equity/redraw/line of credit (lower rates, but your home is collateral)

• Chattel mortgage or hire purchase (for business or charter use; may have tax benefits)

A finance broker can help compare options.

At MarineWise, we take the guesswork out of boat finance. By comparing lenders and uncovering the best-fit options, we help you avoid nasty surprises, keep more money in your pocket, and walk into negotiations with the confidence of a buyer who already has the funds secured.

• Always do a sea trial and a survey

• Run PPSR checks on boat and trailer

• Confirm rego and safety compliance in your state

• Budget realistically for running costs

• If the seller resists fair checks—walk away

Yes. Stamp duty, registration fees, and safety requirements vary between states and territories. For example, registration costs in Queensland differ from NSW, and safety gear requirements (lifejackets, flares, EPIRBs) also change by region. Always check your local maritime authority’s rules, as lenders may require the boat to meet state compliance before approving finance.