Quick answer
Aircraft finance is a loan or lease used to buy or refinance an aircraft, with the aircraft usually held as security. It is a specialist field, and Ownright Custom Finance does not typically arrange aircraft loans. We can look at what is available, explain how the market works, and often point you to a better-fitting option, such as a secured or business loan.
Key points
- Aircraft lending is specialised and lender choice is narrow
- Registration, maintenance records and ownership checks matter heavily
- Running costs often exceed what buyers first expect
- Secured, refinance or business finance can sometimes be a better fit
- Suits
- Private owners, flying schools, charter and agricultural operators
- Security
- The aircraft, sometimes with other assets
- Ownright's role
- We can look at what is available and at alternatives
- Australia-wide
- Yes
What is aircraft finance?
Aircraft finance is a loan or lease used to buy, refinance or upgrade an aircraft. The lender pays the seller, you repay over a term, and the aircraft acts as security. It can cover anything from a light recreational plane to a twin, a helicopter or a working aircraft used in training, charter or agriculture.
It is a specialist field. Lenders who work in it understand registration, maintenance records and the thin resale market, and the number of them is small. We are upfront about this: aircraft loans are not something Ownright typically arranges. What we can do is look at what is available, explain how the market works, and often point you to a better-fitting alternative.
Who looks at aircraft finance?
- Private pilots buying a first or second aircraft
- Flying schools expanding their training fleet
- Charter and scenic flight operators
- Agricultural operators using spray and survey aircraft
- Helicopter owners in mustering, tourism or utility work
- Businesses that want a company aircraft for travel
What do lenders weigh?
The aircraft. Type, age, airframe hours, engine hours and time to overhaul, avionics and maintenance history. A well-documented aircraft of a common type is easier than an unusual one with gaps in its records.
The paperwork. Registration details, ownership evidence and airworthiness records. The Civil Aviation Safety Authority holds the aircraft register. Lenders also check for existing security interests.
The borrower. Income, assets, credit history and ability to carry both repayments and running costs. Aircraft are expensive to own beyond the purchase price.
The use. Recreational use, training, charter and agricultural work are all assessed differently, and the income an aircraft earns can strengthen the case.
The deposit. Lenders in this space often want substantial cash in, because values can fall and the buyer pool is narrow.
What does an aircraft really cost to own?
| Cost | What to think about |
|---|---|
| Hangarage or tie-down | Airport fees vary and good hangar space can be scarce |
| Insurance | Depends on type, value, pilot experience and use |
| Scheduled maintenance | Annual inspections and hour-based servicing |
| Engine and propeller reserves | Overhauls can be major lumps |
| Fuel and oil | Varies with how much you fly |
| Avionics and compliance | Upgrades and regulatory changes |
A realistic budget before you buy is worth more than a clever finance structure. Lenders ask about these costs because they affect whether you can carry the debt.
What are the alternatives?
Because the specialist market is narrow, many buyers look at other ways to fund an aircraft. Options include:
- A loan secured against property, where property is the main security. Our second mortgage for business page and the guide on types of loan security explain how security works.
- Business finance, where the aircraft earns income and the business can carry the debt.
- Chattel mortgage or similar structures where an aircraft lender accepts them.
- Sale and leaseback for an aircraft you already own, releasing cash.
- Saving a larger deposit and buying a smaller or older aircraft.
Each has trade-offs, particularly where your home is the security. This is general information, so talk to us about your situation.
How Ownright approaches aircraft requests
Trevor Scott has spent more than 40 years in finance, and we apply the same attitude here: be honest about what we can and cannot do, then look for a solution. We will not claim a product we do not offer. What we can do is look at what is available, discuss the structure, and where the aircraft is not the right route, point you to something that fits better.
For farmers and rural operators who use aircraft in the business, our farm equipment finance page covers the equipment side. We work Australia-wide.
An illustration
Illustrative scenario only. A pilot with a good income and a family property wants to buy a light aircraft but finds that few lenders are interested. A broker could explain the lender landscape, discuss whether property equity could fund part of the purchase, and highlight the running costs to be budgeted before committing.
Mistakes to avoid
- Buying before confirming how the purchase will be funded
- Skipping a pre-purchase inspection and a full logbook review
- Underestimating hangarage, insurance and engine overhaul reserves
- Not checking registration and security interests
- Putting your home on the line without understanding the risk
- Applying with several lenders at once and leaving enquiries on your credit file
Our guide on what a credit enquiry is explains why that last point matters.
Documents to have ready
- Listing or sale agreement with registration details
- Maintenance logbooks and airworthiness records
- Recent tax returns, BAS and bank statements
- Schedule of assets and debts
- Photo ID and details of any trade-in
The documents guide and loan ready guide help you prepare.
Can I buy an aircraft privately or used with finance?
Used and private purchases are common in aviation, because many aircraft change hands between owners. They also carry extra checks. Our pages on private sale asset finance and used equipment finance explain how lenders view them in general, though aircraft lenders have their own rules.
What if my credit is not perfect?
A blemished file narrows an already narrow field, and honesty is vital because lenders check. The guide to improving your credit score is a sensible first step, and bad credit asset finance shows how weaker files are handled for other assets.
How long does it take to look at aircraft options?
We cannot promise a timeframe or an outcome. Aircraft deals take time because of inspections, records reviews, registration checks and the small number of lenders in the field. A property-secured alternative follows a different path with its own valuation and legal steps. If you have a purchase deadline, tell us first so we can say honestly what looks realistic.
Who else should be involved?
Aircraft purchases are best done with specialist help. An independent aircraft engineer can carry out a pre-purchase inspection, an aviation lawyer can check title and registration, and an insurer who knows the type will advise on premiums. Your accountant can explain the tax side. We can look at the funding picture alongside those advisers, including whether a farm equipment or business facility could play a part where the aircraft earns income.
Ready to talk through your options?
Sounds like you’re looking for aircraft finance. We’re the lending experts in finding workable ways to fund big purchases, so click the button below and see if you qualify for a solution that fits.
How it works, step by step
- 1
Step 1
Tell us the aircraft, the plan for it and your wider financial position.
- 2
Step 2
We explain what is realistic and which structures might fit.
- 3
Step 3
We look at what is available, including secured and business alternatives.
- 4
Step 4
If a solution fits, we arrange the paperwork and settlement.
Frequently asked questions
Does Ownright arrange aircraft loans?
Aircraft lending is a specialist area and is not something we typically arrange. We can look at what is available, explain how the market works and often point you toward a better-fitting option, such as a loan secured against property, a business facility or equipment finance for other assets. Talk to us about your situation.
How do lenders view aircraft as security?
Cautiously. Aircraft values depend on type, age, airframe and engine hours, maintenance status and the buyer pool. Records are critical, and the market can be thin. Lenders usually want a professional valuation, a pre-purchase inspection and clear ownership evidence, and may require a larger deposit.
What are the main costs beyond the loan?
Hangarage or tie-down, insurance, scheduled maintenance, annual inspections, fuel, avionics updates, engine overhaul reserves and registration. Owners often underestimate these. A realistic budget before buying is important. Lenders also consider whether your income can carry both repayments and running costs.
Can I use property equity to buy an aircraft instead?
Sometimes. A loan secured against property can be an alternative, since property is a well-understood security. The trade-off is that your property is at stake. This is general information, not advice, and we can look at whether a secured option fits your situation.
Can a business finance an aircraft?
Sometimes, particularly where the aircraft earns income, for example through charter, training or agricultural work. The lender will look at the business, the use and the regulatory approvals. Private recreational use is assessed differently. Tell us how the aircraft will be used and we will explain what is realistic.
What checks should I do before buying a used aircraft?
Confirm the registration and ownership details, review maintenance logbooks and airworthiness records, arrange an independent inspection and check for any registered security interests. The Civil Aviation Safety Authority publishes registration information. A specialist aviation adviser is worth involving.