Opting for a Fixed Interest Boat Loan
A variable interest loan may seem more attractive as it offers you a chance of paying less interest when the market rate fixed by RBA (Reserve Bank of Australia) goes down. However, do remember that lenders are not always obliged to pass on that benefit to the customers. Moreover, they will definitely hike the interest rate if the market rate in increased by RBA and you will have to pay more. A variable interest loan therefore puts you at the mercy of a fluctuating market and unscrupulous lenders and you may actually end up paying more than expected.
With a fixed interest loan, you are immune to such irregularities of the market.
Fixed Interest Loans offer a Definite Repayment Plan
Paying off a debt is a huge responsibility and you wouldn’t want to be saddled additionally with the hassles of calculating fluctuating interest rates. Fixed rates make it so much easier for you to plan your repayment smoothly so that you can be debt-free within a specific timeframe. As you know just how much you have to pay each month, you can make the necessary changes to your budget accordingly.
Fixed Interest Loans offer Peace of Mind
You can enjoy your boat freely in complete peace of mind once you know that you can easily pay off the debt as per your plans. Fixed loans allow you to restructure your budget and make necessary changes so that your debt repayment plan goes off as scheduled. There is no chance of unexpected interest hikes upsetting your budget and throwing a spanner on your boating plans.
Expensive items like a boat can be store on a storage facility.