The boat loan market offers two primary types of loans: secured and unsecured loans. Secured loans use your boat as collateral, and typically offer lower interest rates, making them ideal for newer vessels. Unsecured personal loans don't require collateral, so if you default on your loan, you will still own your boat. But an unsecured loan might have higher rates than a secured loan. You will be able to make an informed decision as to which loan is right for you, based on your circumstances and the type of boat you're purchasing. 

Modern boat loans can include more than just the vessel's purchase price. Consider incorporating additional costs–such as accessories like the boat cover, safety equipment and even your trailer–into your loan package. This approach can help you better manage your overall investment, while maintaining a single monthly payment.

Working with a finance broker gives you access to multiple lenders through a single point of contact. Gaining access to their industry knowledge and relationships can be invaluable in working your way through the loan process. Your broker can quickly compare rates and terms across numerous lenders, saving you time and potentially securing better deals than you might find on your own.

The key to reducing your loan costs lies in securing the loan product that best suits your unique financial needs. Focus on improving your creditworthiness before applying and consider the timing of your application relative to market conditions. Your finance broker can help identify which lenders are offering the most competitive rates at any given time and compare your options.

Your repayment strategy can significantly impact the overall cost of your loan. You need to consider factors such as the loan term length, deposit amount and payment frequency. While longer terms offer lower monthly payments, they result in higher total interest costs.