financing

[dwayne13628]

Howdy sailors! Well I have another question, this one is for those that have financed a new...er boat. With a mortgage against the boat, are you able to take it out of Canadian / US waters? Also, as my wife and I are thinking of a live aboard situation, what bank would finance a boat given that a boat, unlike most if not all homes, depreciates in value? Anyone have experience with this? I don't want to go looking at new boats, if it is going to be as expensive or more expensive to live on given interest rates on a boat I imagine will not be as good as the rate you would get for a house on terra-firrma.

 

[Miles]

A few thoughts

Interest rates on boats loans are typically a few points higher than on home mortgages. Also, the period is generally shorter (15 years or so) but the overall price is probably lower unless you really go crazy. Then again boats will depreciate whereas houses haven't been doing that lately...The Bank probably won't care about where you take the boat or wether you live aboard but they will require you to carry insurance and the insurance company will care. Marine insurance policies usually specify "limits of navigation" or areas in which they will cover the boat. In many areas (at least in the US) it can be difficult to find a marina that will allow you to live aboard. Have fun boat shopping!

 

[Andy]

Call Scott Financial

or email them your question. They "broker" loans and may be able to find a bank or investor that will accept your situation. I seem to recall that the deal on a mortgaged boat for most US banks is that the boat must be registered with USCG which also means that no foreigner can captain the vessel-which means no charters. Call the guys and dolls at Scott and see if my story is only a half-truth!-they can help.