Frequently Asked Questions.
1. How long does it take to receive a response on my application?
Once a completed application and supporting documentation is received, the goal is to provide an initial follow up within 10 business days.
2. Do you provide pre-approvals?
Currently we do not offer pre-approvals to clients. Please contact our office to start the conversation with a Loan Officer on our lending team. After the purchase and sale agreement is finalized, a formal loan offer will be provided.
3. Over how many years can used vessels be financed?
The vessel to be purchased will be viewed by our Vessel Inspector. A combination of age and vessel condition are used to determine the length of the loan.
4. Do I need to have life insurance in place prior to applying?
Not prior to applying, but you may wish to start the process. The Board will require a Collateral Assignment of a life insurance policy for the amount you are borrowing. As a service, the Board offers loan life insurance at competitive rates.
5. Will you fund a new vessel build or a kit which I intend to finish myself?
This needs to be discussed fully with staff prior to the application being submitted. Please contact us to start the conversation.
6. Will you lend for the Harmonized Sales Tax (HST) portion in a new construction project?
No, since you can claim the HST portion of your purchases, this amount is not eligible in a term loan.
7. What is the required ‘ticket’ needed for the Loan Board? It states online that a Fishing Master IV is needed or five years of experience as a captain. What about new entrants?
We consider Transport Canada’s required certifications. While a Fishing Master IV is preferred, the combination of SVOP and adequate sea-time is acceptable. As long as Transport Canada approves the individual’s experience/training, the Loan Board will consider this requirement as being met.
8. How is loan security arranged?
Staff will work with you to determine what is required for loan security. Security usually consists of personal property (vessel, licenses, gear, equipment). In some cases, claims over real estate or guarantors/co-signers provide additional security to strengthen a deal.
9. Is there a penalty for paying out early/making additional payments?
The Board offers two main types of loan products. Open loans allow for pre-payment/additional payments at any time without fees. Closed loans allow a 10% additional payment per calendar year, with the option of a larger/full repayment on the 5-year loan anniversary. Early payment fees will be added if the payout is not on the 5-year anniversary.
10. Can I be approved if I have declared bankruptcy in the past or have a poor credit score?
A poor credit score/prior bankruptcy will affect your ability to be approved for a loan. Staff needs to fully understand your credit history and your current finances. You may be able to strengthen your request with a larger down payment or a guarantor/co-signer.