Frequently asked questions
What is a typical boat loan term?
5–20 years depending on the boat's value and age. Larger, newer boats qualify for longer terms. A general guideline: loans should not exceed the boat's expected useful life. Most lenders cap at 15 years for boats under $100k.
How much down payment do I need?
Most marine lenders require 10–20% down. A larger down payment reduces the loan amount and monthly payment, and may qualify you for a better rate. Some lenders finance up to 90% for borrowers with excellent credit.
Is sales tax included in the loan?
It can be. This calculator adds sales tax to the purchase price before subtracting the down payment, which is common. Some buyers pay tax separately at registration. Either way, the tax is a real cost to include in your budget.
What ongoing costs should I budget beyond the loan?
Annual maintenance (10% of purchase price is a common estimate), insurance (1–5% of value), slip or storage fees, fuel, winterization, and registration. Total annual ownership costs often equal 10–15% of the boat's value.
Can I deduct boat loan interest on taxes?
Possibly. If the boat has sleeping quarters, a galley, and a head (toilet), it may qualify as a second home, making the interest deductible under the mortgage interest deduction. Consult a tax professional for your specific situation.