Boat financing in Canada

If you want to buy a boat or PWC but need a little help covering the costs, there are many different boat financing options available for you to consider. Keep reading to learn how to find the best boat loan for your financial situation.

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Product	Finder Score	APR Range	Loan Amount	Loan Term	Requirements	Broker Compliance
Dealerhop Powersport Vehicle Loans	Finder score Not scored yet	6.99% - 29.99%	$7,000 - $50,000	12 - 96 months	Requirements: Min. income of $2,500 /month, 3+ months employed	Dealerhop matches you with a dealer partner to help you finance a new or used vehicle.	Go to siteMore Info Compare	loading Fetching your data...
My Auto Approval Powersport/RV Loans	Finder score 9 Excellent	0% - 35.00%	$50,000 - $5,000	3 - 60 months	Requirements: Min. income of $1,800 /month, 3+ months employed	My Auto Approval is a loan search platform. Get matched with a suitable dealer based on your credit history and borrowing requirements.	Go to siteMore Info Compare	loading Fetching your data...
RBC Powersport Vehicle Loan	Finder score Not scored yet	Varies	$7,500 - No max.	1 – 8 years			Compare	loading Fetching your data...
Powersports Financing Canada	Finder score Not scored yet	9.90% - 29.90%	$2,000 - $80,000	24 - 240 months			Compare	loading Fetching your data...

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Finder Score for car loans

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 5+ car loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

Read the full methodology

How can I finance a boat in Canada?

There are four ways to finance a boat or PWC:

1. Get a boat loan through a loan search platform.
2. Get boat financing through a dealer.
3. Get marine financing directly from a bank or credit union.
4. Get a personal loan.

1. Get a boat loan through a loan search platform

How it works

Loan search platforms like My Auto Approval allow you to compare multiple boat loan offers online. By filling out a single online application, you can get offers from the platform’s network of partner lenders.

There are loans available for good and bad credit, and loan terms and rates can vary widely depending on the lender you choose and your personal financial situation.

2. Get boat financing through the dealer

How it works

Many boat dealers offer financing options to their customers. The primary advantages of getting boat financing directly through the boat dealer are that it’s convenient and (often) easy to qualify for funding. Still, before signing on to boat dealer financing, it’s always a good idea to shop around first for the best rate for your financial situation by getting multiple quotes from different lenders.

3. Get marine financing directly from a bank or credit union

How it works

Credit union and bank boat loans are solid options for borrowers with strong credit. Terms of up to 240 months are available on marine loans from banks and credit unions, and you can often choose either a fixed or variable interest rate. You can also choose a repayment schedule that suits your needs.

If you’re buying a PWC, you may need to apply for a powersport vehicle loan. These have shorter loan terms and tend to be unsecured, which means you won’t have to use your jet ski as collateral.

Banks and credit unions typically offer some of the lowest interest rates, provided you have good to excellent credit, but the application process is more involved. Your best bet is to talk directly with a representative to discuss your options before deciding which type of boat financing to apply for.

4. Get a personal loan

How it works

Your next boat financing option is to use a personal loan from a bank, credit union or online lender. Loans can be secured (using your boat as collateral) or unsecured, you can borrow between $1,000 and $50,000 and terms of up to five years are available. You’ll generally get better rates from banks and credit unions, but you’ll need good to excellent credit to qualify.

Online lenders may be your best bet if you have bad credit—or no credit at all—as they have more flexible eligibility requirements than traditional lenders. You can fill out the loan application in a matter of minutes online, and you can usually expect to receive an approval decision within the day. However, alternative lenders tend to offer higher interest rates for boat and PWC financing.

How does boat financing work?

Boat financing can usually be one of the following:

• A secured loan that is designed specifically to finance a boat
• A more general secured personal loan that allows boats to be used as collateral
• An unsecured personal loan with no collateral

Boat and PWC financing allows you to spread out the cost of purchasing your watercraft into manageable monthly payments. Because boats can be quite expensive purchases, repayment terms of up to 20 years are available from some lenders. You’ll need to pay the amount you borrow plus interest, and the rate you get is determined by factors like your credit score, income and debt-to-income ratio.

If you’re looking for a better interest rate, you may want to consider using the boat as security for the loan. The downside is that you risk losing your boat if you default on the loan.

How much can I borrow to finance a boat?

How much you can borrow for boat financing generally depends on the price of your boat and is typically between 90% and 100% of the boat’s cost. Minimum loan amounts can start anywhere from $500 to $50,000 or more, depending on the lender.

Of course, the amount you’ll need to borrow could vary substantially, depending on the type of craft you’re buying. While jet ski prices range from approximately $5,000 to $30,000, boats could cost anything from a few thousand to well over $1 million.

There are several other costs to consider on top of the purchase price, such as:

• Boat equipment. Consider the cost of decking out your boat. Electronics, water toys, accessories and safety equipment could set you back $1,500 or more.
• Operating costs. This cost will also vary depending on the type of boat you choose and how you use it.
• Boat maintenance. You will be stuck with a higher maintenance as your boat gets older, especially if you take less and less care of it. Slow down wear and tear, for instance, by washing the hull with fresh water after taking out your boat.
• Storage. Mooring fees are usually calculated by the length of your boat and will increase if you store it in a high traffic or popular area.
• Boat insurance. Insurance costs vary depending on the type of boat you have and where you store it. As a general guide, you can expect insurance to cost 1.5% of the value of your boat per year. Keep in mind, you may not need insurance in your province or territory, but the marina where you store your boat may require you to have insurance.

Don’t forget the down payment

Like car loans and mortgages, always consider putting a down payment on your boat. Lenders tend to favour applicants that can front at least 20% of their boat’s cost. To avoid over-borrowing, we recommend saving up as much as you can for a down payment so you don’t need to borrow as much to finance your boat. The less you borrow, the less interest you’ll pay.

Remember: Boats are more like cars than houses. Your vessel will begin to depreciate as soon as you buy it. If you borrow a large amount with a lengthy term, at some point, you may end up owing more than the boat is actually worth.

What kinds of boat financing rates and terms can I expect?

If you’re looking at a secured personal loan, rates typically start around 6.45%, while unsecured loans can be higher at around 9.75%.

Personal loans usually come with terms from 3 – 60 months. However, if the boat is worth a lot, you may find much longer terms. Remember that a longer loan term will mean that you pay more interest.

Representative example: Boat financing in Ontario

Barbara lives in Ontario and wants to buy a boat to keep at her cottage in Muskoka. Her neighbour is selling a used Angler boat for $15,000, but Barbara only has $7,000 on hand to spend at the moment, so she decides to look into options for boat financing in Ontario to cover the remaining $8,000.

Barb has strong credit, so she compares both traditional and non-traditional lenders. She finds that her bank offers the lowest rate and best terms. She can get approved for a personal loan of $8,000 with a 5% APR and a two-year loan term.

How do I compare boat financing options?

Look at the following factors when comparing boat loans in Canada:

Interest rate

Boat loan interest rates vary depending on the lender you choose, your credit history and your current financial situation, but rates for secured loans are generally lower.

You also need to decide if you want a fixed or variable rate. A fixed rate gives you the security of a set repayment amount, while a variable rate lets you enjoy lower repayments if interest rates fall (but your repayment will increase if rates rise).

Fees

Check the fine print for details of any fees that may apply, such as NSF or prepayment fees. Use a loan’s APR, or annual percentage rate, when comparing it to other products, as this combines the interest rate with the loan fees to give you a clearer idea of the true cost of borrowing.

Loan amount

Find out the maximum boat loan amount that each lender offers. For example, if you’ll be using a personal loan to finance a boat, some lenders have maximum loan amounts of $50,000.

Down payment

Check if there’s a minimum down payment requirement you must meet to qualify for a loan. Many lenders offer funding with nothing down, but keep in mind that, the larger the size of your loan, the more interest you’ll end up paying.

Loan term

Boat loans are available with terms of up to 20 years, but the term you get will vary depending on the type of loan you choose. For example, personal loans commonly come with a maximum term of seven years.

Choose your loan term by figuring out how much you can afford to repay each month. Do your calculations using our boat loan calculator to figure out how long it’ll take to pay off the amount you want to borrow with the annual percentage interest rate (APR) you might qualify for. Remember: A longer loan term means a smaller monthly payment, but it also means you’ll pay more interest in the long run.

Secured or unsecured

Boat loans can be secured or unsecured, so consider which loan type better suits your financial situation. A secured loan is risky since you can lose the collateral—typically your boat or PWC—if you don’t make your repayments. However, you can usually get a lower interest rate than with an unsecured loan.

Speed of funding

How long will it take to apply, get approved and get funded? Compared to alternative lenders, traditional lenders tend to have stricter eligibility requirements and longer underwriting processes for boat and PWC financing, so you may get funded quicker with an alternative loan or dealer financing.

Repayment flexibility

Can you choose a repayment schedule that suits your income frequency? If you want to make extra repayments towards your loan or pay it off early, can you do so without being charged any extra fees?

Boat financing eligibility requirements

Eligibility criteria vary from lender to lender, but you will usually need to:

• Be 18 years of age or the age of majority in your province or territory
• Be a Canadian citizen or permanent resident with a valid Canadian address
• Have proof of income
• Have a valid bank account
• Meet credit score requirements
• Meet income requirements

Required documents

You will need the following documents on hand when applying for boat financing in Canada:

• Personal details like your name, address, Social Insurance Number (SIN), phone number and email
• Income details, including pay stubs or bank statements
• Employment details like your employer’s name and contact details
• Bank account details

What do boat financing lenders look for in a borrower?

Making yourself a good candidate for boat financing providers will go a long way towards helping you get a low-cost loan for your marine purchase.

• Steady source of income. You need to show that you have enough regular income to afford monthly repayments after your other bills and debt obligations.
• Low debt-to-income ratio. You must have a low debt-to-income ratio. Lenders want to make sure you won’t be overextending yourself—and putting yourself at risk of default—when you finance a boat.
• Liquid assets. Lenders often want to see that you can still handle payments should your employment or income situation change drastically.
• Good to excellent credit. Lenders look for borrowers with good to excellent credit because it shows a history of paying bills on time and managing debt responsibly.

Can you get bad credit boat loans in Canada?

If your credit history is less than perfect, the good news is that you can still qualify for boat financing in Canada. The bad news is that you’ll need to watch out for high interest rates and fees.

You likely won’t get approved by a bank or credit union, as these traditional lenders have strict eligibility requirements. But specialist boat financing companies and alternative lenders are willing to work with people who have bad credit.

Instead of focusing on your credit score, these lenders will look at your income, employment and existing debts when assessing your loan application. You may get approved if you can demonstrate that you will be able to afford repayments, but be warned that higher interest rates apply to bad credit loans.

What types of boats can I finance?

• Bass boats

  This is a small boat that’s designed to fish bass or other panfish. It usually comes with features like swivel chairs, storage bins for fishing equipment and a live well to store any fish you might catch.

• Bowriders

  So-called because of their roomy bow area, this boat is ideal for water skis and wakeboards.

• Cabin cruisers

  Similar to a bowrider except for its top cabin, these boats offer creature comforts like water heaters, power generators and even heaters and air conditioners.

• Catamarans

  Known as “cats,” these boats can be small vessels designed for sailing and fishing up to naval ships. Catamarans come with two hulls.

• Centre consoles

  These boats are made for fishing adventures. You’ll usually find a bait well as well as fish lockers and a cabin.

• Cuddy cabins

  A cuddy cabin boat has a small room or cupboard. This type of boat is used primarily for fishing, watersports and other family boating activities.

• Dinghies

  These small boats can be towed by larger boats into shallow waters, or they can be the main boat for fishing in calm water.

• Gameboats

  Also built for shipping, this is a large boat that can come equipped with cooking galleys and sleeping berths to make the boat comfortable for long trips.

• Houseboats

  This is a type of vessel that’s used primarily as a home, whether for vacationers or permanent dwellers. Many of these are not motorized because they’re moored at specific locations.

• Sailboats

  “Sailboat” can refer to various types of sailing craft that share the common feature of being reliant on wind for movement.

• Runabouts

  You won’t usually find a cabin on a runabout, which is a smaller boat designed for tow sports or fishing.

• Motor yachts

  You’ll find various amenities on this boat, which is designed for ocean cruising. Sleeping berths, air conditioning, plumbing and galleys are usually standard.

• Ski and wakeboard boats

  If you’re looking for a boat for watersports and tow sports, this is the type of vessel for you. The propulsion on these small boats allows for water-skiing jumps and tricks.

• Trawlers

  You can use a trawler for commercial fishing or recreation, but you’ll see a distinction between the two. Fishing trawlers will always have a displacement hull, but you’ll only find a semi-displacement hull on trawlers designed for recreation.

• Walkarounds

  Called such because you can walk the full way around the boat, these medium-sized boats come with stowaway seating and a central cabin.

• Jet skis

  These personal watercraft allow the rider to stand or sit on a craft powered by an inboard motor. Stand-up PWCs are generally designed for single riders, while sit-down models can accommodate two to four riders.

Boat financing calculator

Use this boat loan calculator to find out your potential monthly payments for any boat financing options in Canada you may be considering.

• How to use this boat loan calculator

  1. Enter the amount you need to borrow for your boat loan (the cost of the boat including any taxes and fees) under Loan amount.
  2. Write the loan term in years (not months) under Loan terms.
  3. If there are no fees, enter the loan’s interest rate under Interest rate. Otherwise, write the annual percentage rate (APR), which includes interest and fees.
  4. Hit Calculate.
  5. Review your results.

Frequently asked questions about boat financing

• How long can you finance a boat in Canada?

  The maximum available loan term depends on factors like the lender and type of loan you choose along with the purchase price of the boat. While personal loans typically have maximum terms of five to seven years, marine and boat loans in Canada provide terms of up to 20 years.

• What is the best way to finance a boat?

  The best way to finance a boat in Canada depends on the type of boat you're buying, how much you need to borrow, your credit score and your financial situation.

  If you have good to excellent credit, you will generally be able to find the best boat loan interest rates in Canada from banks and credit unions. But if you have bad credit, you're more likely to get approved and may get quicker access to funds with an alternative lender.

  Ultimately, you'll need to shop around and compare boat financing options to find the right lender for your needs.

• Can I get used boat financing in Canada?

  Yes, some lenders offer used boat loans in Canada. However, the lender may place a maximum limit on the age of the boat, for instance, only financing models that are 10 years old or newer. You'll also need to consider the fact that used boats and PWCs may come with extra maintenance and repair costs.

• Can I get a TD boat loan?

  TD offers marine loans through its TD Auto Finance arm to help finance a wide range of watercraft. You can choose a fixed or variable rate, and terms of up to 20 years are available. Alternatively, you may be able to take out a personal loan from TD to fund your boat purchase, with loans of up to $50,000 and terms of up to seven years available.

• Where can I get fishing boat financing in Canada?

  There are several ways to get fishing boat financing in Canada. You can compare boat loan offers through a loan search platform, get boat financing through a dealer, apply for marine financing from a bank or credit union or use a personal loan to pay for your fishing boat. Check out the pros and cons of each financing option in this guide.

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.