Swimming Pool Finance

What options do I have to finance a pool?

These type of loans work in much the same way as regular personal loans or loans for home renovations. You have a few choices when it comes to financing a pool:

• Secured personal loan. A secured personal loan requires you to attach an asset to your loan as security. You may choose to attach something like your car or house, or if you have a mortgage you can use the equity you hold in your home as security. These loans are less risky for a lender so they are able to offer you lower rates and fees.
• Unsecured personal loan. This type of loan does not require you to use an asset as security, meaning it is less of a risky loan for you to take on. To offset the increased risk that the lender takes on with these loans, you can expect to be charged higher rates and fees. These loans are often more flexible, though, as you are able to use the loan amount to finance not only the pool but any other purchases as well.
• Mortgage finance. People looking to finance home repairs may opt to increase their mortgage amount. This means they can keep their debts in one place and better manage their repayments. Keep in mind that the interest you will be charged may be higher than some other personal loans, although you may save money by not having to pay fees on a separate loan. Calculate all of the costs you will incur to see if this is a good option for you.
• Line of credit. If you are not sure how much you should borrow or want easy access to additional funds, consider a line of credit. You can borrow up to and including your credit limit and pay back what you borrow. By making repayments you can access those funds again immediately.

Is it possible to get an interest-free loan for a swimming pool?

Unfortunately you're unlikely to find an interest-free loan to cover the entire cost of a pool. One potential option would be to use a 0% interest credit card that can cover the pool costs and then repay the balance within the interest-free period.

However, given the costs of building a swimming pool, you may find it difficult to be approved for a large enough credit limit to cover the total amount.

How can you choose a loan for a pool?

If you’re looking at getting a loan to build a swimming pool, you should keep the following points in mind when you’re comparing your options:

• The lender. The lender offering the loan should inform your decision. You can read customer reviews of lenders online and see how easy they are to contact and what their customer service is like.
• Loan terms. The length of time you are able to borrow the money is referred to as the loan term and it’s something you should confirm before you apply for the loan. Calculate the repayments you will be able to afford and then see how long you will have to borrow the money for. Lenders will differ on the length of time for which they will allow you to borrow.
• Loan amount. The lender may restrict the amount of money you can borrow depending on the type of loan you choose and your financial circumstances. Check to see if you will be able to borrow the amount you need before applying.
• Loan purpose. Certain types of loans, for example secured loans, have restrictions on the way you are able to use the funds. If you are planning to use the loan amount to finance a pool as well as something else, you should check with the lender to see that you are able to do so.
• Actual cost of the loan. To calculate the true cost of a loan, take into account the interest rate, the upfront and ongoing fees you will be charged, the amount you are borrowing and the length of time you will be borrowing the money for.

Pool costs to consider

Like many major expenses, the process of purchasing and installing a new swimming pool can contain unforeseen expenses.

When budgeting keep in mind the following costs:

• Installation issues. Even if the pool you purchase is going to be above ground, there is a certain amount of digging in your yard that will have to be done in order to make it level. Running into complications like large rocks or water lines can significantly add to the cost of your pool installation.
• Insurance. Many homeowner insurance lenders will charge extra for a swimming pool on the premises. This is not something you want to try and avoid by not telling them though. That extra insurance can protect you in case something does happen.
• Fencing. This is an important safety feature and is a requirement when installing a new pool. The type of fence you choose to get will depend on whether you have children, pets and the type of pool and backyard you have.
• Maintenance. Once the pool is ready for swimming you need to consider how you are going to maintain it. Even if you don't plan on hiring a company to do the cleaning for you, you will still have to invest in chemicals and cleaning equipment.

How to choose a pool

You are going to have a number of options to choose from when deciding on the right swimming pool for your backyard. Knowing the types of activities you plan on using your pool for will help you decide the best style and type for your home:

• Above-ground vs in-ground. Pools either sit on top of your yard or sink into it. In-ground pools look better and can add 7-10% to your home's value, but they're expensive. Above-ground pools are cheaper and quicker to install, though less appealing visually.
• Size. Match the pool to your yard. Leave space for decking, landscaping or outdoor furniture - otherwise you'll end up with a water tank instead of a backyard.
• Shape. Above-ground pools are limited to round or oval. In-ground pools let you get creative: freeform designs for style, or rectangular shapes if you want to swim laps.
• Depth. Shallow ends (1-1.5m) are safer for kids. Deeper sections (3m+) allow for diving boards or slides. Many in-ground pools use a gradual slope to cover both.
• Material.
  • In-ground: Concrete (fully customisable), fibreglass (durable, faster to install), vinyl (cheap but less durable).
  • Above-ground: Rigid walled or soft-sided (portable and seasonal).
• Energy efficiency. Solar heating, heat pumps and covers can cut ongoing costs significantly.
• Maintenance. Don't overlook cleaning and upkeep - filtration, pH balance and resurfacing can add thousands over the pool's life.

Is there anything else to consider?

Before you take out a loan to build a swimming pool, consider your own financial situation and the stability of your income. If you have substantial debts already, you may want to try and reduce this debt before you apply for a loan.

Before applying, you might want to look at getting a quote for the pool to see how much you should borrow to avoid applying for multiple loans. In addition, you might want to consider getting pool insurance or check if your current home insurance policy will cover your new investment.

In addition to finance, remember that all Australian states require permits for pool construction and fencing is mandatory under national law. Check with your local council before applying for finance to ensure your project is approved.

How to apply for your chosen pool loan

If you would like to apply for a loan to finance a swimming pool, compare your loan options using the comparison tables above, or head to the page of your chosen loan type.

When you have found a suitable option, simply click the "Go to site" button to be securely transferred through to the lender’s website. From there you can fill out an online application form.

To apply for a loan in Australia, you will generally need to be over the age of 18, be a permanent Australian resident and have a good credit rating.

If your credit rating is not perfect, there are some lenders who may still be able to help.

When you apply you will need to provide personal details; financial details including your assets, debts and liabilities; and your employment details including your employer’s name and contact information, as well as your income and pay frequency.

• How much does it cost to finance a swimming pool in Australia?

  Average pool loans are between $20,000 and $50,000, however Swimming Pools can cost well in excess of that depending on the pool type and location.

• What credit score do I need to finance a pool?

  Most lenders require a "good" credit score (660+ Equifax), though some lenders accept applicants with lower scores at higher rates.

• Can I use a home loan top-up instead of a personal loan for my pool?

  Yes, but consider long-term costs since stretching repayments over 20-30 years may cost more overall.

Written by

Rebecca Pike

Editor, Money

Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

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Rebecca has written 267 Finder guides across topics including:

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