What Are Your Financing Options When Buying A Yacht?

Owning a yacht is a wonderful experience, one filled with countless sunsets falling behind the horizon, kids laughing while jumping off the swim platform into the ocean, and nights spent staring at the stars while waves gently connect with the hull. The yachting lifestyle is a luxury, reserved for those that have earned their position in life through hard work and success, while inspiring others to reach the pinnacle of their own endeavors.

Once you've completed your search for the perfect yacht for sale, acquiring the vessel doesn't have to mean deleting your cash reserves. Financing your yacht can:

Offer potential tax advantages if loan interest payments qualify to be deductible
Provide enhanced liquidity for other investments or opportunities
Easier to budget if loan has several years of fixed interest rates
Optimize cash flow management

WHAT DO THE YACHT FINANCE EXPERTS SAY?

Shana White is a marine finance expert for OceanPoint Lending and has helped hundreds of owners successfully purchase a yacht. "At OceanPoint Marine Lending, we create a finance program that works for you," said Shana. "We're very open with our clients on what to expect when financing the vessel they want to purchase, sometimes it takes some extra work. Of course, your credit score is going to play a significant role in determining your eligibility."

Review the below infographic showing what you can expect when financing a $2 million yacht:

financing a yacht for sale infographic

WHAT ARE THE DIFFERENT TYPES OF YACHT LOANS?

Depending on what your financial position is, what type of yacht you're purchasing, and what that vessel's situation is, there are a number of ways that your marine loan specialist can construct your program. If you are a prospective yacht buyer trying to navigate the market, consider these different scenarios below:

1.) Traditional Yacht Loans: These loans are secured where the yacht serves as the collateral for the lender. This is a similar situation to a home mortgage. Loan terms are typically between 10 to 20 years and sometimes even as short as 5 years. Criteria for borrowers includes strong credit, stable income, and a low debt-to-income ratio.

2.) Superyacht or Yacht Construction Loans: For high-net worth buyers that are purchasing a superyacht or have contracted with a shipyard on a new construction yacht, there are tailored programs available. These custom construction loans are typically greater than $15 million are structured in multiple agreements between the borrower, lender, and the shipyard. They include interest-only periods, milestone draws, and floating or fixed rate structures.

3.) Home Equity Loans or HELOCs: In a HELOC loan, you are using the equity in your home to finance the boat purchase. These are typically used on less expensive boats or yachts, as well as have a lower interest rate. There is risk, however, as you are using your home as collateral.

4.) Asset-Backed or Collateral Loans: There are some luxury asset lenders that accept items such as other boats, art, or other collectibles as collateral for the loan. Depending on the lender and structure, rates can sometimes be low if the collateral is of high enough value.

Additionally, owners looking to charter they yacht should meet with their lender to discuss options. Some lenders offer revenue-based structures within the loan. Chartering your yacht can be a great way to preserve capital and avoid depleting your cash reserves.

sportfishing yacht owners enjoying their day fishing

OUR BEST RECOMMENDATION FOR GETTING A YACHT LOAN

As the largest yacht brokerage firm in the world, United Yacht Sales manages at least one yacht sale every 12 hours on average, many of those are deals that have some finance component involved. The best recommendation to anyone new to boat ownership is to consult with a professional marine lender, like Shana White of OceanPoint Marine Lending, before you seek financing.

Marine lending experts specialize in the unique aspects of yacht financing, including vessel valuation, loan structuring, insurance requirements, and understanding complex maritime laws. They can help you navigate loan terms, interest rates, and lender-specific criteria, significantly increasing your chances of securing favorable financing terms. They’ll also assist in accurately determining affordability, avoiding common pitfalls, and potentially saving you thousands in interest costs over the loan term.

ABOUT OCEANPOINT MARINE LENDING

OceanPoint Marine Lending, a division of BankNewport, is a recreational financing company dedicated to helping customers make their dream of boat and RV ownership a reality. From a seamless digital application to efficient loan closings, our experienced team of lending specialists provides an excellent customer experience, with competitive, flexible financing programs tailored to fit your needs.

ABOUT UNITED YACHT SALES

United Yacht Sales has the world's largest network of boat buyers and sellers in the industry, thanks to our team of over 250 yacht brokers in 104 different locations. Whether buying a luxury boat or selling one, we have the right expert on staff to assist you in navigating the brokerage market for your type of yacht. If you're looking at selling a boat, there is no quicker way to get activity than listing it with United. Our entire team is immediately notified every time a listing agreement is made with United Yacht Sales and many boats are sold before they ever even make it online. Our support team is among the best in the industry at marketing your yacht. 100% of our marketing budget goes towards advertising our clients' listings, a claim not many other firms can make. To get started listing your yacht, fill out our online form What's My Yacht Worth?

Here Are Other Yacht Sales Related Articles You Be Interested In:

What Are Your Financing Options When Buying A Yacht?

SEND UYS A MESSAGE

RECENT POSTS