Yacht Financing Rates & Terms: 2024 Q1 Update

Updated January 9, 2024

If you have your sights set on purchasing a yacht and are considering financing a portion of the cost, we have some exciting news to share that will help you navigate the financial aspect of your journey. Despite the upward trend of rates in 2023, which reached a high of the low-to-mid 8’s at one point, current yacht financing rates are dropping! Current fixed rates begin in the 7.24% range as of week ending January 5, 2024*.

While there are alternative options available, such as interest-only loans and variable rates, it’s the fixed rate options that hold the greatest appeal amongst buyers. Positive news coming from the recent Federal Reserve meetings indicate that rates will continue to decline throughout 2024.

Eligibility Criteria – Yacht Financing Rates and Terms

It’s important to note that not all buyers will qualify for these favorable terms. Eligibility criteria are heavily influenced by various factors, including credit score, overall credit history, loan amount, the age of the collateral, and the size of the down payment, among others.

Amortization & Down Payments on a Yacht

Yacht loans typically amortize for a 20 year term, with a minimum down payment of 20% for most purchases. However, for higher loan amounts exceeding $2.5M, a more substantial down payment of 25-30% is required. On the other hand, smaller loan amounts under $500,000 may allow for a more flexible down payment of 15%.

Closing Costs on a Yacht

As for closing costs, at Galati Yacht Sales, we do not charge any loan origination fees, closing fees, application fees or points. Yacht loans are often compared to mortgage loans, however, yacht loans do not come with the same steep closing costs as mortgage loans. The only fees you will encounter are for USCG Documentation and/or state registration of your vessel. Additionally, if you reside in Florida and sign your loan documents there, Florida Documentary Stamps will apply. That’s all there is to it!

Refinancing a Yacht

As interest rates rose in 2023, the topic of refinancing became more prominent. If the rates continue to decline and it is a viable option for you, you can indeed refinance your yacht loan. Refinancing a yacht loan is a straightforward and cost-effective process. Our team can assist you in determining whether refinancing is the right choice for you, and we work with lenders who specialize in yacht loan refinancing.

Lenders – Experience is Key

Collectively, our Galati finance team has well over 30 years of financing experience in the marine industry. Why is this important? We have well-established partnerships with the largest marine lenders in the industry that provide aggressive rates and terms that best fit your scenario and your financing goals. We also work with some smaller regional lenders and credit unions that may fit the needs of a particular customer or purchase.

Customer’s Are Unique – Yacht Financing

Every purchase is unique. Every customer is unique. Knowing this, we specialize in determining which lenders are a good fit for each scenario. For instance, one lender may offer the best options for loans over $1M, while another may work better for smaller deals. Not all lenders offer options for chartering customers, or for boats kept outside of the US, or even for older vessels over 20 years old. Therefore, it is IMPORTANT to work with a finance team that can navigate through these different nuances so you are placed with the best lender for you and your goals.

Yacht Insurance

In today’s ever-changing insurance market, it is absolutely crucial to initiate your insurance quotes as early on in the process as possible. What’s even more important is to choose an agent who is well-versed in marine insurance. Over the past year, the insurance market has proven to be challenging, with popular insurance companies either exiting the marine insurance market or tightening their qualifications.

Choose An Agent Experienced in Marine Insurance

This is why it is imperative to collaborate with an experienced agent who specializes in marine insurance. They will guide you through the process, asking all the right questions and ensuring your quote request is prepared accurately and directed to the most suitable insurance company for your needs. By starting the insurance process promptly, you will be setting yourself up for a smooth and timely closing.

Our Partnership with Baldwin Krystyn Sherman Partners

Since 2006, Galati Yacht Sales has forged a strong alliance with Baldwin Krystyn Sherman Partners, combining our expertise to fiercely advocate for the best terms, conditions, and premiums on behalf of our valued clients. If you’re venturing into the world of boat ownership for the first time, we invite you to explore our comprehensive First Time Yacht Buyer Insurance Guide, designed to provide you with the knowledge and guidance needed to make informed decisions.

Yacht Financing Options with Galati Yacht Sales

At Galati Yacht Sales, we pride ourselves on our unparalleled finance process that guarantees a seamless and personalized experience for you. Our team of experts is readily available to address any inquiries and provide exceptional customer service from the beginning till the end of the sales and closing process. And that’s not all! We also offer top-notch after-sale support. Consider us your ultimate destination for all your yacht buying or boat selling needs, as we provide assistance with insurance, warranty, documentation, and registration. Find out more about our financing process or reach out to us today for a hassle-free experience.

Financing With Galati Yacht Sales

* Yacht Financing rates as of 1/5/2024. Lender rates are subject to change.

Disclaimer: Rates, terms, down payment, origination cost, and pre-payment penalty vary based on the customer’s credit profile and approved lenders requirements

Yacht financing update courtesy of Dana Galvao

Finance Manager for Galati Yacht Sales