Owning a caravan gives Australians the chance to explore the great outdoors in comfort but understanding how caravan finance works can seem daunting.
A leading finance broker, National Loans offers a range of asset finance solutions including boat finance, motorbike finance and caravan finance. With years of experience, National Loans is well versed in helping borrowers understand the terms and conditions attached to different caravan loan products.
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For borrowers, National Loans says the most important things to understand are borrowing capacity, how to compare loan options and navigating eligibility criteria. With every caravan loan product being slightly different, it can be overwhelming, particularly for first timers.
National Loans explains that all lenders look at a range of similar factors to assess individual applications. These include financial circumstances, employment status, credit history, amount to be borrowed, size of deposit, loan term, whether the loan is secured or unsecured and the age of the caravan.
While there aren’t necessarily ‘typical’ caravan loan terms, there are some general rules according to National Loans. In general, a better credit score, shorter loan term and newer caravan will help a borrower secure a lower rate.
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Additionally, National Loans says secured caravan loans attract lower rates than unsecured caravan loans. If a borrower chooses a fixed-rate loan, the interest rate will remain the same throughout the life of the loan, which means the borrower’s monthly repayments will also stay the same.
On the other hand, variable rates will fluctuate depending on the market, which can result in higher or lower monthly repayments. Variable-rate loans also offer additional features such as redraw facilities and early repayment options, which can potentially save a borrower money over the life of a loan.
As an expert caravan loan broker, National Loans does all the hard work for borrowers to identify a loan that matches their needs, with a great rate secured from their panel of specialist bank and non-bank lenders.
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