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Pool finance in Australia
Ah, the perfect pool for a scorching Aussie summer. What price could you put on it?
Well, the reality is anywhere between $10,000 and $100,000.
In this guide I’ll explain your pool finance options. Plus, how to make sure you pay as little as possible for it.
How can I finance a pool?
If you’re looking for pool finance, there are two main options:
- A pool loan
- Funding it through your mortgage
I’ll start by explaining how pool loans work. Then I’ll contrast it to the home loan equity option.
What is a pool loan?
A pool loan is a personal loan that you can use to finance the cost of installing a pool.
This is what you can typically get with this kind of pool finance:
- Loan amounts up to $100,000
- Fixed loan terms from 1 to 7 years
- Fixed or variable interest rates available
- Weekly, fortnightly or monthly repayments
- Unsecured personal loans are more common but there may be secured options
- Your interest rate will be tailored to you
There are also home renovation loans available if your new pool is part of a wider home improvement.
Cheapest pool loan interest rates
Pool loan interest rates in Australia start from 6.57% p.a. (comparison rate* 6.57%p.a.).
The interest rate you actually get may be different.
See, personal loan interest rates depend on your risk profile.
Lenders consider your credit score, income, other debts and expenses when calculating your rate.
It can have a big impact when it comes to calculating your regular loan repayments and the cost of your pool finance overall.
Comparing pool loans
The personal loan you choose will have a big impact on the overall cost of the project.
Probably more so than the builder you choose, or whether you splash out on fancier pool fixtures.
And if you’re going to push the boat (or inflatable unicorn) out on one aspect of your pool build, you probably don’t want that to be loan interest and fees.
Below are the main aspects of pool finance that will determine your costs:
Pool loan interest rates
Look for the lowest interest rate you’re eligible for.
Fees
Aim to minimise the upfront and ongoing fees that some lenders charge, plus extra repayments fees. If you get your pool finance through a personal loan broker, they may also charge fees.
Loan term
A longer loan term will mean lower regular repayments but you’ll pay more interest and fees. A shorter loan term will mean higher repayments but generally you’ll pay less in interest and ongoing fees. The average personal loan term is just under three years.
Loan flexibility
Look for the flexibility to make repayments weekly, fortnightly or monthly. Plus the option to make extra repayments and repay the loan early without penalty. If you do repay extra, some pool loans offer redraw, which is the ability to withdraw your extra repayments if you want to.
How to get pool finance in Australia
Once you’ve worked out the budget for your project, getting pool finance can be a fairly simple process
Here’s what’s typically involved:
1
Compare pool finance providers
2
Before you apply, check your credit score to make sure you’re in a good position to get approved
3
Submit a loan application to a pool finance provider (this is usually done online and can be done in around 10 minutes with some lenders)
4
Provide any supporting document requested (e.g. payslips, bank statements)
5
Wait for your finance application to be assessed (this can also happen very quickly)
6
If approved, sign a loan contract
7
The loan funds will be transferred to your nominated bank account
If it’s a straightforward application, the whole process can be completed in 1-2 business days.
For more complex situations like a bad credit personal loan or a low doc personal loan for self-employed borrowers the process will likely take a bit longer.
Fixed vs variable pool finance
Depending on the lender, your pool finance can either come with a fixed or variable interest rate. Here's the difference:
- With fixed pool finance, the interest rate and repayments stay the same for the entire loan term.
- This is handy for planning your budget as your costs won’t change.
- With a variable rate pool loan, the interest rate and repayments could go up or down with the market.
- The downside of fixed rate pool loans is they tend to be less flexible. Particularly being able to make extra repayments and repaying the loan early.
- But fixed loans offer more certainty overall.
Pool finance options compared
I mentioned earlier that the other main pool finance option is to use the equity in your home (refinancing).
There can be advantages to doing this. But it's usually a much longer loan term.
Borrowing over a longer period usually means higher costs.
Here’s a quick overview of the main differences between a pool loan and refinancing your mortgage as a source of pool finance.
Pool loan vs home loan refinance
Amount available | |
Personal loan | Up to $100,000 |
Home equity | Depends on home loan balance and home’s value |
Interest rates | |
Personal loan | Starting from 6-7% |
Home equity | Starting from 4-5% |
Loan term | |
Personal loan | Up to 7 years |
Home equity | Up to 30 years |
Property valuation required | |
Personal loan | No |
Home equity | Yes |
Security required | |
Personal loan | Optional |
Home equity | Yes |
| Personal loan | Home equity | |
|---|---|---|
Amount available | Up to $100,000 | Depends on home loan balance and home’s value |
Interest rates | Starting from 6-7% | Starting from 4-5% |
Loan term | Up to 7 years | Up to 30 years |
Property valuation required | No | Yes |
Security required | Optional | Yes |
How much to borrow to build a pool
A personal loan for a pool will allow you to borrow up to $100,000.
But lenders will assess your actual borrowing capacity based on your income, credit history, your regular expenses and other debts.
Borrowers who are seen to be a greater risk based on those factors may not be able to borrow as much.
Of course the amount you end up borrowing will also be determined by the cost of your pool.
What does a pool cost?
Materials
The most common pool materials are concrete, vinyl-liner and fibreglass. Vinyl-liner pools (the ones above ground with frames) start around $10,000, while a common fibreglass pool can begin around $25,000. Concrete pools begin around the same price, but have a much higher scope for expansion, if you can afford it.
Construction
If you’re opting for an in-ground pool, then you’ll also need to think about your property and where you’re building it. This means ease of access to install the pool, ground conditions, any angles or slopes and how they impact the size or shape of your pool. These factors could have a big impact on cost.
Ongoing costs
Ongoing costs can be a major factor down the line. But you’ll need to start thinking about many of these from day one. This means things like water filters, servicing and replacements, any pool sanitisation, chemicals, filters systems, pool covers or cleaners, and heat pumps or other features.
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