A boat loan is a personal or secured loan used to purchase a new or used boat. Due to the high cost of marine vessels in Canada—ranging from $10,000 to over $1 million—most buyers opt for financing.
Lenders offer various boat loans canada products based on credit risk, loan size, and collateral, such as the boat itself.
Loan Type
Description
Typical Term
Secured Boat Loan
Boat used as collateral. Lower interest.
5–20 years
Unsecured Personal Loan
Based on credit; no collateral. Higher rates.
1–7 years
Home Equity Line of Credit (HELOC)
Uses home equity; flexible use.
5–25 years
Dealer or Manufacturer Financing
Offered by marine dealers; promo rates possible.
5–15 years
Balloon Loans
Smaller monthly payments; large final payment.
5–10 years
Each type offers unique benefits and risks. Secured loans dominate this sector due to lender protection via the boat’s resale value.
10–30% is standard depending on the vessel type and loan type.
Newer or more expensive boats may require a 20%+ down payment.
As of 2025:
Secured Loans: ~6%–9% APR
Unsecured Loans: ~9%–13% APR
HELOCs: ~5.5%–7.5% (variable)
Rates vary based on:
Credit score
Loan amount
Lender policies
Typically 5 to 20 years
Luxury boats may qualify for 25-year amortizations in rare cases
Monthly: ~$580 CAD
Total interest paid: ~$19,600 CAD
To get approved in Canada, lenders usually evaluate:
Factor
Requirement
Credit Score
650+ for best rates (lower may still qualify)
Income Stability
Proven employment or steady income stream
Debt-to-Income Ratio
Should ideally be < 40%
Down Payment Ability
Shows commitment & reduces lender risk
Boat Age/Type
Some lenders avoid financing boats older than 15 years
RBC Marine Financing
TD Auto Finance (Recreational Loans)
BMO Loans
Scotiabank Personal Loans
Coast Capital
Desjardins
Vancity
BRP (Sea-Doo) offers 0% financing promos
Yamaha and Mercury programs
Local dealers may partner with financial institutions
Enables ownership without upfront capital
Helps build credit history
Fixed monthly payments make budgeting easier
Access to newer, more reliable boats
Interest adds to total cost of ownership
Risk of repossession if payments fail
Depreciating asset
Potential hidden fees (inspection, insurance requirements)
Review reports from Equifax Canada or TransUnion
Dispute errors to increase scores
Don’t accept the first offer—compare at least 3 lenders
Shows seriousness to sellers
Locks in rate temporarily
Ask for longer amortization to reduce monthly payments
Request flexibility on early repayments
Comprehensive insurance may be mandatory for secured loans
Yes, many lenders offer used boat financing, but typically only if the boat is under 15–20 years old.
Generally, no, unless the boat is used for business purposes and properly claimed.
With complete documentation, approval may take as little as 24–72 hours.
A score of 650+ is ideal, though some lenders may approve as low as 600 with higher interest.
Yes, but check for prepayment penalties in the contract.
Yes—if you have a strong job offer, SIN, and good banking history, many lenders offer newcomer financing programs.