![]() ![]() Fill out our online application form or call 1300 889 669 to speak with someone. We offer fixed-rate loans and flexible repayment options. Use our finance calculator above and include a balloon amount to get an idea of how it changes the repayment amount.įor more information or to discuss your options, contact Aussie Boat Loans today. At the end of the five years, you will still have to pay the remaining $15,000 (or refinance as mentioned earlier). While reduced loan repayments are the primary advantage of using a balloon amount, other benefits include the ability to increase the size of the loan so you can potentially afford a better vessel, as well as helping to manage your cash flow.įor example, if you are purchasing a $60,000 boat, take out a five-year loan and choose to have a $15,000 balloon payment (25% of your loan amount), your loan repayments will be based on the remaining $45,000, plus interest. The balloon payment amount varies from lender to lender and takes into account the age and type of boat plus other factors. Refinancing is a popular choice - you can either keep your boat and simply pay off the remaining amount with a new loan, or upgrade your vessel. For unsecured boat loans, the interest rate would be higher since the lenders are taking more risks. If the borrower defaults, the boat will be taken by the lender. In a secured boat loan, the boat will be used as collateral for the loan. your boat or jet ski) to pay off the balloon, or refinancing with your loan provider to pay off the remaining sum. Boat loans can be both secured and unsecured. Once you have reached the end of your loan term, you have the option of paying your balloon amount, selling the item you got the loan for (e.g. This lump sum amount is technically excluded from the loan amount that your repayments are covering, which decreases your repayment amount. Essentially, it is a one-off lump sum that you will pay off at the end of your loan. What is a Balloon Payment?Ĭonsidered an optional extra, a balloon payment can help make your weekly or monthly loan repayments more affordable. While the comparison rate helps you compare the cost of one boat loan with another, its also important to consider other features from the loan provider such as flexibility of repayments, redraw and direct debit facilities. It does not take into account all fees, however, such as early repayment fees or statement fees, nor does it include government and statutory fees as these are standard fees regardless of the loan provider. It is calculated using a combination of the nominal interest rate and up-front and ongoing fees. Member FDIC.As the name suggests, the comparison rate lets you compare the actual cost of a loan from different providers. Deposit products are offered through U.S. Installment loans are offered through U.S. Offer is subject to credit qualifications. There may be a title registration fee which is determined by your state of residence. A prepayment penalty of 1% of the original loan amount applies if the account is closed within 1 year, with a $50 minimum and $100 maximum. Loan payment example: for a $25,000 boat loan over a 48-month term, monthly payment would be $613.14 at an APR of 8.24%. Loan payment and APR will vary based on the loan amount, the term, and any fees. This brochure can be obtained by visiting a U.S. Bank personal checking and savings accounts. The Consumer Pricing Information brochure lists fees, terms and conditions that apply to U.S. Automatic payments are not required for loan approval. Bank personal checking or savings account is required. In order to receive the lowest rate advertised, a setup of automatic payments from a U.S. Rates may be higher for loans to purchase a boat from a private party, smaller loan amounts, longer terms, used boats and other credit qualifiers. ![]() Rates as low as 8.24% annual percentage rate (APR) are available for 4-year boat loans $25,000 and higher at 100% loan-to-value (LTV) or less on a new boat. Find a financial advisor or wealth specialist. ![]()
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