Swimming pool finance is included in home improvement loans with the specific loan product dependent on the scale and scope of the works. The loan may take the form of a mortgage-style product or an unsecured loan facility.
There are a number of compelling reasons why staying and installing a pool at the current property rather than selling and moving can be a great idea for many homeowners. The property market is in a low price cycle, with many buyers not wanting to put their property on the market at this time. So staying put and improving the property to increase the value may mean a better price when the time is right for you to sell.
Then there is inflation remaining high causing cost-of-living pressures, factors that may make a ‘staycation’ an attractive option these summer holidays. Installing your own pool, complete with resort-style features may make staying home this summer a very appealing option.
El Niño is already making itself felt with the warmest winter temperatures recorded in many areas. It is looking like Australia is in for a very hot summer. Your own pool could make dealing with the heat a lot more pleasant, especially if you have children.
But with spring already here, now is the time to get organised with your plans and how you will finance a swimming pool on your property. Start by talking with one of our experts about the options we may source for you.
Swimming Pool Finance Options
Financing for swimming pools falls under the category of home improvement loans. Several credit products are available in this category and which is best suited will depend on the scope of the individual project.
A Construction Loan may be required where the pool installation involves extensive structural change to the property. Where the installation involves a smaller project, an Unsecured Personal Loan may present an affordable financing solution.
Unsecured Personal Loans are a versatile financing option where the improvement project has a value of up to approximately $20,000. The homeowner does not have to provide assets as collateral for the loan. Versatile, yes, but this type of loan does attract a higher rate than other secured options. Rates are typically variable.
Where plans for a swimming pool installation involve extensive works to the property, a Construction Loan may be a more suitable and affordable financing solution. The application process and requirements are more involved than for some other lending products, but the rates can be more attractive than unsecured loans.
For a Construction Loan, the homeowner will need council-approved plans and a builder’s quote for the loan application. Where the project will take some time and the builder is requesting progress payments, these need to be detailed so our experts can recommend the most suitable loan product.
A 5% deposit is required for Construction Loans where the work is being undertaken by a contractor builder. This is calculated based on the total project costings and the finance required. Where homeowners have equity in their property, they may use that equity as collateral. This may contribute to a better finance rate being secured. Fixed or variable rates may apply.
Another option is a mortgage-style loan. This type of credit facility can suit mid-sized projects – not large enough for a Construction Loan but too large for an Unsecured Personal Loan. Discuss your plans with a Yes broker for advice and guidance on the most suitable loan for your project.
Swimming Pool Finance Inclusions
Pool installations can vary in the scope and size of works required, depending on aspects of the property and the homeowner’s plans. Essentially all elements of the project may be included – design fees, land clearing, excavations and property preparation works, the installation, tiling, paving and landscaping and the required filtration and possibly, solar equipment to heat the pool for year-round swimming.
Budget Prep for a Swimming Pool Loan
Before proceeding with signing contracts with installers or talking with designers, homeowners may want to set their budget, starting with the finance costs. Pool installations can vary extensively from budget through to resort-style luxury. Knowing what you can afford in finance payments can assist in setting your budget to brief the designers. The design may then be created to suit your budget. Take advantage of our borrowing capacity calculator to get an estimate on what you may be approved to borrow and our loan calculators to get estimated payments on different loan options.
With temperatures already rising in many parts of the country, start actioning your plans and apply for your swimming pool finance today.
For competitive rates and affordable swimming pool finance solutions, connect with Yes Home Loans on 1800 000 937.
DISCLAIMER: THE INTENTION OF THIS ARTICLE IS TO PROVIDE INFORMATION OF A GENERAL NATURE ONLY. THE ARTICLE IS NOT PROVIDED WITH THE INTENTION OF BEING THE ONLY SOURCE OF INFORMATION ON WHICH PROPERTY BUYERS SHOULD MAKE THEIR DECISIONS. BUYERS WHO NEED GUIDANCE AND ADVICE ON PROPERTY LOANS BASED ON THEIR INDIVIDUAL CIRCUMSTANCES ARE ADVISED TO CONSULT WITH A SPECIALIST MORTGAGE BROKER OR FINANCIAL CONSULTANT. NO LIABILITY IS ACCEPTED FOR MISREPRESENTATION OF FOR ANY ERRORS IN DATA, POLICIES AND SPECIFIC DETAILS THAT HAVE BEEN OBTAINED FROM OTHER SOURCES.