Some people in Australia will be able to finance their inground swimming pool with their own savings.
However, most Australians will have to look at other means of financing that substantial purchase, and there are options available.
These can include secured loans, unsecured ones, and Handypay. It is worth noting that an inground swimming pool should increase the value of your home so read on to find out how to finance a pool.
If you want to use the value of your home to effectively secure a loan then use it as collateral in a secured loan.
That does mean that should you default on that loan, the bank can claim the rights to your home to retrieve their money.
Despite this important factor, a secured loan is the most common and popular option to finance an inground swimming pool as it means homeowners can borrow against their home’s equity.
It is also worth noting that secured loans should have a lower interest rate while the payments are typically spread over a longer period of time as opposed to other types of loans.
Unlike a secured loan, an unsecured one is not attached to collateral like your home which may be a relief.
In fact, unsecured loans are increasingly risky for a lending institution like a bank as the interest rates are comparatively higher with payment terms reduced to a shorter period of time.
You may find out that the majority of lending institutions will refuse to lend out over $30,000 in the form of an unsecured loan though you may find one that will go up to $40,000.
Qualifying For Loans
To find out if you qualify for a loan to finance your inground swimming pool, work out the most up-to-date equity in your home.
That should tell you how much you have available for a secured loan and you can contact a lending institution with that sum in mind.
In turn, the lending institution should have a good idea of the programs and rates that they can offer too.
For an unsecured loan, do your research on those lending institutions that offer them to see if the amount they offer can cover the project.
Various inground swimming pool builders use Handypay as their way of providing swimming pool finance.
Handypay offers a relatively straightforward payment plan which is tailored to your swimming pool project.
Their mantra is ‘swim now, pay later’ which sounds inviting enough so start by selecting what type of pool you want.
Apply to Handypay for their buy now and pay later option then you should be approved swiftly and the vendor will be paid the upfront cost of your swimming pool purchase.
One of the useful elements of using Handypay is how the repayments for your swimming pool will be scheduled conveniently in line with whatever your income is.
They offer a range of flexible payment plans from as little as $2,001 to as much as $75,000 over a period of one to seven years.
Even their repayment options are flexible as they can be weekly, fortnightly, or even monthly. There are some requirements which you would expect from any lending institution.
Applicants simply must be over 18 years of age, be an Australian Citizen or Permanent Resident, must receive an employment income, and the swimming pool has to be for consumer use only.
Handypay also offers a lifetime structural warranty on all of their inground swimming pools so all you need to do is find your local pool builder to get started.
How A Pool Can Increase The Value Of Your Home
However you decide to finance your pool, remember that it should add value to your property. That’s an important factor to consider as most lending institutions will bear that in mind when they are calculating the loan.
If you do decide to sell your home in a few years time, then having an inground swimming pool should help your home’s marketability.
Make sure that your swimming pool is in good condition as one that has seen better days may actually reduce your home’s value.
Final Thoughts on How to Finance a Pool
Before you decide on how to finance a swimming pool, check out your local area to see if you truly need one.
If your local council has a community pool, or has plans to build one, then your own swimming pool may not be as valuable in the future as you imagine.
Sure, having the privacy of a swimming pool in your own backyard is a great thing to have, prospective homebuyers may prefer that space for something else in their backyard.
However, if there is not a pool for miles then deciding to finance and build an inground swimming pool could prove to be a sound investment in the value of your home.
Frequently Asked Questions
How Difficult Is It To Finance An Inground Swimming Pool?
Financing an inground swimming pool should not be more difficult than any type of home improvement project.
You should start by working out the current equity of your home and then work on your own credit score.
Lending institutions prefer borrowers who have excellent credit and they can borrow at lower interest rates.
You can even improve your credit score by ensuring that your debt payments are on time and you are paying down all of your balances responsibly.
If you feel overwhelmed with how to go about budgeting for or how to finance a pool, than it might be worth working with a financial planner to help you out.
How Much Work Goes Into Maintaining An Inground Swimming Pool?
You may only use your inground swimming pool once or twice a year during summer or the holidays.
However much you use it, you should be putting an effort in each day to look after it.
That could be something simple like emptying the filters or skimming out leaves, and debris but there are other, more meaningful, and time-consuming ways to maintain your pool.
That includes testing the pH level in the water as well as covering it with a sheet, opening, and closing it too.