Powersport Financing

Boat Financing

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Powersport Financing is the top choice for boat financing bad credit boat loans,  due to our streamlined application process and experienced financing specialists. We offer competitive rates and flexible repayment terms, making boat ownership attainable for all.

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How Does Boat Financing Work?

Bad credit boat loans simplified

1. Application

Get approved from your phone

2. Choose Boat

Choose to buy your boat from a private seller or from a dealer

3. Enjoy Your Boat

The Fun part!

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Estimate Your Boat Loan Payments

Find out your estimated loan payments before shopping by using our boat loan calculator

Get Approved Anywhere

Choose to apply online or come in to to an application

Fast Boat Financing Process

In a couple hours we can have you approved for a boat loan

Trusted by Thousands

We have helped thousands of Canadians get approved for their boat

Safe & Secure Application

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Bad Credit Boat Financing

Powersport Financing has a dedicated team of specialists standing by to not only get you approved but to make sure we get you the boat of your dreams!

Boat Financing Q&A

Boat financing in Canada refers to the various lending options available to borrow money to purchase a boat. Like financing a car or home, boat loans allow buyers to pay for their boat over time through a lender rather than paying the full price upfront. Boat financing is offered by banks, credit unions, boat dealerships and private lenders. The loan amount, interest rate, terms and eligibility requirements can vary between lenders. Boat loans in Canada typically range from $10,000 to over $100,000 and terms often range from 2 to 10 years.

Bad credit boat loans in Canada typically have interest rates ranging from 10% to 25% depending on your specific credit situation. Here are some factors that influence the interest rate you may receive:


Your credit score – the higher your score, the lower the rate.

Your down payment amount – larger down payments reduce risk for lenders.

Your debt-to-income ratio – lenders prefer ratios of 35% or less.

The boat loan amount – larger loans often have higher rates. 

The loan term – shorter terms often have lower rates.

Having a co-signer – can result in a rate reduction of 2-5%.


Getting pre-approved can help you identify the rate range you qualify for with your credit profile. Shop multiple lenders to find the most competitive rate on your bad credit boat loan.

There are several common types of boat loans offered by lenders in Canada:


Secured Boat Loans – These require the boat itself as collateral for the loan. They typically have lower interest rates.

Unsecured Boat Loans – These don’t require collateral and are based on creditworthiness. Rates are usually higher.

Dealer Financing – Many boat dealers offer financing through partnerships with lenders. Rates can be competitive.

Personal Loans – Banks and credit unions may offer personal loans to finance a boat purchase.

Peer-to-Peer Boat Loans – Online services connect individual borrowers and investors for boat loans.


– Home Equity Loans – Borrowers can tap home equity to finance a boat.

Most lenders in Canada require a minimum credit score between 600 and 650 for approval on a boat loan. Borrowers with scores in the good to excellent range (670+ according to Equifax) will qualify for the best rates. Those with poor credit below 600 may have difficulty getting approved or pay significantly higher interest rates if accepted. Checking your credit reports before applying is recommended.

If you need a boat loan in Canada but have bad credit, some options include:


– Secured loan using the boat title as collateral

– Co-signer with good credit to qualify

– Peer-to-peer lending sites like Lending Loop

– Dealership subprime financing programs

– Local credit unions or small banks

– Paying down debts or collections to improve credit score

– Taking out a smaller personal loan for a less expensive used boat

– Looking at alternative lenders and private financing companies

– Waiting and reapplying after improving your credit profile

Popular options for boat loans from Canadian lenders include:


– Major banks like RBC, TD, Scotiabank, CIBC, and BMO

– Credit unions like Coast Capital Savings, Vancity, Meridian

– Boat manufacturers’ financing arms like Yamaha Financial Services, BRP Financial Services

– Private lenders like Fairstone Financial, Lendcare

– Online peer-to-peer lenders like Lending Loop, Grow


– Dealerships that offer in-house financing or have partner lenders

The main factors that affect boat loan interest rates in Canada include:


– Your personal credit score and history

– Whether the loan is secured or unsecured

– The loan repayment term length (longer terms mean higher rates)

– The size of the down payment (larger down payments get better rates)

– The total loan amount requested

– Current prime interest rates at the time of borrowing

– The individual lender and their rates and fee structure

Currently, average interest rates for boat loans from Canadian lenders range between 4.99% and 9.99% for borrowers with good credit. Rates are higher for those with poor credit histories, and lower for secured loans or loans with large down payments. For example, secured loans may average 5-7% interest, while unsecured loans for borrowers with bad credit could be over 15%. Shopping around is wise to compare rate offers.

Common boat loan repayment term lengths offered by Canadian lenders are:


12 months – Maximum loan amounts tend to be lower.

24 months – Allows borrowers to pay off the loan faster.

36 months – A moderate 3 year repayment term.

48 months – Also a popular term length.

60 months – Allows for smaller monthly payments by extending the repayment period.

72 months – 6 year terms may be offered for very large loans.

84 months – 7 year terms are sometimes offered but mean paying more interest.

96 months – A few lenders may offer 8 year terms on boats over $100k.

Here are some tips for qualifying for a bad credit boat loan in Canada:


– Have at least a 580 credit score. Many bad credit lenders will approve loans for applicants with credit scores around 600 or higher.

– Provide proof of income. Lenders will want to see you have enough steady income to make the monthly payments.

– Make a down payment, typically 20% or more of the boat price. A larger down payment shows commitment and reduces risk for the lender.

– Have limited existing debt obligations. Too much existing debt compared to your income will make it harder to qualify.

– Bring a co-signer with better credit, if possible. A co-signer may help you get approved and get a lower interest rate.

– Apply with lenders that specialize in bad credit boat loans. They are more likely to approve those with imperfect credit.

A down payment of 10-20% is typically required by most Canadian lenders offering boat loans. Average down payments are:


10-15% down – For well-qualified buyers with excellent credit scores.

15-20% down – For buyers with good credit histories meeting minimum requirements.

20-30% down – Often needed from applicants with poor credit or high debt ratios.


Some lenders may offer boat loans with less than 10% down but interest rates are usually much higher.

Bad credit boat loans can finance many types of new and used boats, including:


– Fiberglass runabouts or bowriders from 12 to 25 feet

– Pontoon boats from 18 to 25 feet

– Aluminum fishing boats and bass boats up to 21 feet

– Cruisers and cabin cruisers from 25 to 40 feet

– Small sailboats up to 30 feet

– Inflatables and personal watercraft


Lenders may put restrictions on boat age, price, and condition. Luxury boats may be limited to borrowers with higher credit scores. Get pre-approved first to understand what types of boats you can finance.

When financing a boat in Canada, borrowers can expect to pay certain fees such as:


Application fee – One-time cost to apply, usually $100-$300.

Origination fee – Upfront fee for processing, around 1-2% of loan amount.

Documentation fee – For preparing loan documents, averaging $300-$400.

Taxes – GST/HST taxes on the purchase price of the boat.

Registration – Costs to register the boat, $15-$150 depending on the province.

Insurance – Required comprehensive boat insurance policy.

Interest – The cost of borrowing money, based on the loan’s interest rate.

Being pre-approved makes the boat buying process easier and faster. To get pre-approved:


– Choose a lender and apply by completing their application.

– Submit required documents like pay stubs, tax returns, IDs.

– The lender will review credit reports, income, debts and assets.

– If approved, the lender provides a pre-approval letter stating the maximum loan amount.

– The pre-approval locks in an interest rate and terms for 30-90 days.

– With the letter, buyers can negotiate prices and start boat shopping.

The best places to find current boat loan rates and offers from Canadian lenders are:


Bank and credit union websites – Review boat loan pages and rate comparison charts.

Dealership websites – Dealers often list current lender rates they can offer.

Rate comparison sites – Enter your criteria to view multiple lender rate quotes.

Calling lenders directly – Speaking with a loan officer can provide tailored rate quotes.

Pre-approval applications – Applying provides personalized rate offers based on your profile.

Finance broker websites – Brokers have access to a wide range of boat loan products and rates.

Typical documents needed to apply for a boat loan in Canada are:


Proof of income – Recent pay stubs, T4s, tax returns if self-employed.

Government ID – Driver’s license, passport, etc.

Proof of address – Recent utility bill, bank statement, etc.

Down payment source – Bank statements showing savings.

Boat purchase agreement quote – If pre-approved before choosing a boat.

Boat information – Year, make, model, HIN, value.

Insurance quote – For required policy.


Tips for improving your chances of getting approved for the best boat loan possible include:


– Have a down payment of at least 15-20%

– Check credit reports and fix errors to increase your credit score

– Pay down existing debts to lower your debt-to-income ratio

– Choose a shorter loan term length, like 3-5 years

– Provide strong proof of income through tax returns, pay stubs, etc.

– Get pre-approved first before picking out a boat

– Be prepared with all required documents

– Consider adding a co-signer with better credit if needed

Using a co-signer with good credit is one of the best ways to improve your chances of getting approved and secure a lower interest rate on a bad credit boat loan. A co-signer becomes equally responsible for repaying the loan, so it reduces risk to the lender.


Benefits of using a co-signer include:

– Higher approval chances if your credit is poor

– Interest rates reduced by 2-5% or more

– Ability to qualify for larger loan amounts

– Potential to skip down payment requirement


The main downside is it puts the co-signer on the hook for the loan if you can’t repay. Overall, a co-signer can make a bad credit boat loan much more affordable.

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