If you’re struggling to keep up with your boat loan repayments, don’t wait for your credit score to worsen before taking action.

Refinancing your boat loan is a proactive solution that will help you get you back to good financial health. 

What is refinancing?

Refinancing is a loan product that allows you to pay your existing loan by taking a new loan from another lender.

The new loan is subject to different terms and has a fixed interest rate. It’s also usually secured against the boat, which means that the new lender will not ask for another collateral, like your home or other assets.

Why refinance a boat loan?

Refinancing a boat loan makes sense for a borrower especially because it helps save on monthly loan repayments in two ways: with a lower interest rate or with a longer loan term.

You can also refinance your boat loan with a cosigner for a better interest rate.

If you have had a bad experience with your current lender, refinancing the loan will help end your agreement so you can find a better finance provider.

How refinancing works

Once the new lender approves your boat loan refinancing, it will lend you the total unpaid balance from your first loan. This will enable you to pay off the previous loan completely.

Some lenders impose a prepayment penalty, so ask your new lender if you can include this amount on your refinance loan.

Meanwhile, you’ll get another contract for the refinance loan, which may include a lower interest rate and/or a longer loan duration.

Better contract terms will depend on your credit rating. If you currently have a poor credit score, then it’s best to find a cosigner with excellent credit.


Refinancing a boat loan has several advantages, including the opportunity to find a better bank or lender if you’re no longer happy with the first one.

It will also help lower your monthly loan repayments, either by getting a better annual percentage rate (APR) or longer loan term. This will give you better cash flow and save more money.

Boat loan refinancing will also give you a chance to add or remove a cosigner for whatever purpose it may serve.

If you have other loans, perhaps a home and/or a car loan, a loan refinancing will also enable you to consolidate all of them into a single loan.

And if you have a variable interest rate on your first home loan, refinancing will allow you to switch to a fixed interest rate.


On the other hand, refinancing a boat loan also has some disadvantages, which include paying more interests.

Since the refinance loan will have another complete term or a longer one, you will pay additional interest on top of the amount you’ve paid on your first boat loan.

You can always opt for a shorter loan term to avoid more interest payment, but this will lead you to a larger monthly repayment.

Aside from these, refinancing a boat loan will also require you to pay a new set of transaction fees to your new lender, not to mention the possible penalty for paying off the first boat loan completely.

Why Choose Aussie Boat Loans

Refinancing a boat loan can be a very helpful tool to pay-off your initial loan, improve your credit score, and reorganize your credit accounts. It will also be very beneficial if you can find a new lender that offers competitive rates, just like Aussie Boat Loans.

We can help give you a variety of boat finance options to fit your needs, whether you’re refinancing a commercial vessel or a Personal Watercraft (PWD). We also offer different loan packages to new and used boats that will benefit boaters of all types of financial situations.

Call us today on 1300 889 669  and one of our finance experts will help you find the best rate for your boat loan refinancing. You can also send us an inquiry online or use our boat loan calculator to find out which water vessel fits your budget.