Financing In Canada

[joshw5144]

Hi,
I have a question regarding boat loans in Canada. I have searched and while there is a ton of information about financing in the US I cannot find much for Canada. First, are there any major banks that finance sailboats? I live in Alberta, but looking at boats in BC. Second would the best option be to speak with a broker on the west coast? I am not looking for a personal loan, but something with longer terms and more of a mortgage type loan. Any help is much appreciated.

[waverider]

If you are looking at a newer boat most banks will do long term mortage with 20% down. I believe 20 years is the longest term but It may be 10. If you are looking for an older boat then you may have to take out a line of credit or personal loan.

[Greenman]

The Scotia Bank has boat specific loans which seem to be very well laid out. It is very simple if the loan is less than 20K then as you get more expensive the hoops and red tape get more noticable.

Scotiabank - Marine Financing

[talus]

I met one of the brokers for Walker Financial Services at a local boat show.

They shop your loan application to a couple of banks for rates. There are only a couple of Canadian Banks that service the market so there isn't much competition.

I was advised rates were based on bond rates, with interest on loans at ~ 7.5% at the time (much higher than home loans of course). There was no problem with a 20 year term on a new, or newer boat. Boats older than 10 years seemed to be more of a problem to finance for long periods.

There was an application fee ($300ish???) and the ability to get pre-approval.

The broker advised me that one hurdle I might face is possible issues with an out of Canada purchase when I have no intention of bringing the vessel back into the country.

If anyone has anymore Canadian specific details/experience lets hear them. Specifically, anyone financing an out of Canada purchase.

[Vasco]

Originally Posted by talus

I met one of the brokers for Walker Financial Services at a local boat show.



There was an application fee ($300ish???) and the ability to get pre-approval.

Never deal with anyone that charges an application fee for a loan!! They are usually scams.

[talus]

In checking with the banks for a boat loan, they also charge an application fee.

[bangkaboat]

I've financed boats through Canada Trust & Bank of Montreal before, no problems. The best thing to do is to sit down with your bank manager & discuss it. I wouldn't let on, however, that you might want to go offshore. The best way to buy a boat is to know what you want & don't want in a boat. It is a mistake to trust the broker with this choice, as they want to sell what they have listed. Once you know what you want, a broker is very handy for assisting you with your bank paperwork. The best move is to draw up a list of what your boat should be, by asking a lot of questions about structural integrity issues, keel/hull/rig/etc. types, and brand name recommendations/criticisms on forums such as this. Take your time, as your decisions will change with the increase in knowledge. As well, it impresses the loans officer when you've spent a lot of time on research. Best of luck!

[SabreKai]

Long time ago I had boat loans with TD and CIBC. Nowadays I deal with Bank of Montreal, who seem to be happy to loan money out to boaters. I applied for a loan in one day, got a $30k Line of Credit instead and paid for the boat the next day.

Sabre
87 days n a wake up

[Zednotzee]

I'm using a home equity line of credit. The interest rate is actually better than my mortgage (by about 1.5%), & I have the option of paying the interest only (which would be really stupid of course).

[talus]

Our plan is to buy in South East US and cruise in the Caribbean. I see no reason to bring the boat back to Canada just to pay duty and taxes, however, we will register and flag the boat Canadian.

Just got an email back from a "toy mortgage broker" and this is what he had to say...

"We have access to a couple of lenders who would consider your deal. Time line and rates are unknown. This would not be bank financing, but also not private money. I’m sorry I can’t be more specific, but not many companies have an appetite for financing a boat that is not in Canada."

That sure doesn't sound very encouraging.

Oh ya... and their application fee is $495 plus whatever the lender charges for application. That sounds even less encouraging.