Many of life’s major purchases call for taking out a loan. Whether you are buying a home or a new automobile, chances are you will be financing the cost with the help of a lender. This is a fairly common practice, and for good reason–most of us simply do not have that much cash laying around. A sensible monthly payment, with a reasonable interest rate, can open the doors to sizable investments for average folks. This same practice also occurs in the boating world. As even used boats can be costly, it is not atypical to take out what is called a “marine mortgage.” Should you opt for this particular financing route, you will need to submit what is called a Form 7 – Mortgage to Transport Canada.
Boating is a pleasure that does not need to be out of reach to most. Even more wealthy individuals will use a loan when purchasing a large yacht or commercial vessel. If you are in the market for a boat and are in the midst of consulting with lenders about a potential loan, read on to learn more about some of the paperwork that you will need to complete.
What is a Form 7 – Mortgage?
If you have previous experience owning a boat, or obtaining a boating license, you are probably familiar with Transport Canada’s paperwork. As this government agency keeps a fairly detailed registry, they like to have a knowledge of which Canadian vessels are carrying marine mortgages. For this reason, in the event that you take out a loan, you will need to fill out a Form 7.
This document will ask for some relevant details about yourself, your vessel, and some information about the lender involved in the transaction. This form is also useful in preventing the sale of a boat that currently features a lien or unreleased mortgage. Once completed, you can mail this document to Transport Canada’s offices in Ottawa.
Registering Your Vessel
In most cases, Canada requires vessels that carry marine mortgages to enter the National Vessel Registry. This is also required of any boats used for commercial purposes, or for any boats traveling on international waters while flying the Canadian flag.
There are some perks to registering your vessel. For one, you will receive a completely unique name for your boat. For another, this allows you to forgo the process of obtaining a Pleasure Craft License (PCL). With a registered vessel, you can also proudly fly the Canadian flag on-board your boat.
Completing your registration will call for some basic details about your boat, as well as supplemental documents. You will also need to provide photographs of all four sides of your boat. You can complete this document by hand and mail it to the appropriate government authority for processing.
We Can Help You Process Your Documents
At the National Vessel Registry Center, we can save you a trip to the post office. We offer easy-to-fill web forms for Form 7s, vessel registration, and more. Locate the forms you need on our convenient website and process your documents today.