Having your own boat is a unique luxury. Being able to go out on the water whenever you want to escape the stresses of daily life is a dream for many. While vessels can come in varying shapes and sizes, motorized vessels that can carry you and your friends and family are especially sought after. The reality is, however, that boating can be cost prohibitive. Docking fees, maintenance expenses, and licensing costs can quickly pile up. Not to mention, the pricing on newer, high-end boats can leave you reeling with sticker shock. For this reason, it is not uncommon for aspiring boat owner’s to look into the Form 16 – Builder’s Mortgage from Transport Canada.
If you have purchased a car in recent years, you may have opted to finance it over time with a loan. This is a relatively common practice allowing you to buy a new vehicle without putting up the cash up front. The same is true for purchasing a home–you are not charged with paying hundreds of thousands of dollars in cash for your property, you instead acquire a loan from a bank which serves as your mortgage. The same principle applies to buying a boat, and while it can give you some financial freedom in your purchase, there are some paperwork nuances that you will want to come to know.
What is a Form 16 – Builder’s Mortgage?
Maybe you have been planning to buy a boat for years. You have saved money and done endless hours of research, scouring for just the right listing. Even after an exhaustive search, however, you still haven’t found the perfect vessel for you. Well, if you find yourself in this situation, you may end up considering having a boat built.
Building a boat allows for a degree of customization that cannot be found at your local boat dealership. You can create a vessel that matches your ideal specifications and suits your needs and ambitions. While this is undoubtedly an exciting opportunity, it can also be a fairly expensive one. Even for the wealthy, building a boat can necessitate financing to cover the costs. This can be accomplished with what is called a “Builder’s Mortgage.”
As its name would suggest, a builder’s mortgage is a loan from an outside lender that is used to pay for the costs of constructing a boat. When such a finance agreement is entered in Canada, there is official government paperwork to be taken care of. Specifically, you will need to submit a Form 16 – Builder’s Mortgage to Transport Canada’s offices in Ottawa. This document will ask for some basic information about the mortgagor and mortgagee, as well as the vessel itself. You can locate this document on Transport Canada’s website, where you can then download it as a PDF file, print it out, complete it by hand, and mail it to the appropriate government office location.
Entering Your Boat in the National Vessel Registry
While completing your builder’s mortgage documentation with Transport Canada is a compulsory first step in your paperwork journey, it is not the end of the road. This document will prove useful as you complete the next required process, which is registering your vessel with the Canadian government.
Transport Canada requires that all vessels carrying marine mortgages be entered into the National Vessel Registry. They do this so that they can track mortgaged vessels on Canadian waters, as well as stay current on the ownership of said boats. It is worth noting that while this may seem like a bureaucratic hassle, it is not without its own benefits. For one, you will receive a name and identification number that are completely unique to you. If you have gone so far as to build your own boat, chances are you have a streak of individualism within you–having your very own moniker to separate you from the other boats at sea may be especially appealing.
Additionally, having your boat registered allows you to fly the Canadian flag on international waters. What better way to show your national pride than seeing our colors shimmering in the wind behind you?
Other situations also warrant mandatory registration of your vessel. If you are engaging in any sort of commercial activity, you will need to file for registration. If your boat will be traveling into international waters under the Canadian flag, registration is also required.
File Your Required Forms Online Today
If you have begun drawing up plans and working with a builder on your boat, as well as secured the necessary financing, it is time to submit your mortgage paperwork and vessel registration documents to Transport Canada. Fortunately, there is a quick and easy solution for completing this process online.
At the National Vessel Registry Center, we offer easy-to-use online forms for these and various other vessel documentation needs. Contact one of our helpful customer service agents today to learn more.