Swimming Pool Financing

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Swimming Pool Financing

While most Canadians experience long winters, many are also see lots of hot summer weather when the season rolls around. When those temperatures arrive, it’s a huge relief to have a nice pool to jump in. The only problem is that most pools, whether large or small, can be pricey to purchase and maintain. No need to worry, because the right type of financing will help you buy the pool of your dreams over time. 

Comparing Your Pool Financing Options

Pools come in all shapes, sizes, and costs. There are above-ground pools that you can purchase on the spot and set up with your friends, family, or a technician. Then there are in-ground pools that require weeks of labour and a team of builders to construct. 

Luckily, there are also a number of different ways to finance these various pools, each of which can be useful in its own way. Some of the more common options include:

Installment Loan – This is a specific lump sum of money that you can borrow from almost any lender in Canada. If your application is approved, the funds will be transferred directly to your bank account. You would then use them to finance your pool, then repay the lender over time through equal installments.

Home Equity Loan – If your home has accumulated sufficient equity, you can use it as collateral to secure either a home equity loan or a home equity line of credit (HELOC). The value of your home will need to be appraised and the amount you get approved for will be based on that plus the amount still owed on your mortgage. But, you could potentially gain access to a larger loan with more favourable terms. 

Want to learn how to build home equity? Check out this article

Credit Card – While a loan can allow you to borrow more money, it may also be too hard on your finances. In that case, a regular credit card may be a better choice, as you’ll be able to make minimum monthly balance payments to avoid defaulting. Just keep in mind that credit cards come with high-interest rates. While charging an on sale above ground pool might be a viable option, you should avoid charging an expensive inground pool and installation. 

In-House Financing – If none of the products above seem right for you, there are many pool wholesalers that offer in-house financing, as well as store discounts or seasonal deals. Most wholesalers will even have a building crew on-sight, which will save you from having to hire your own contractor. 

Weigh Your Options Carefully   

All this said, not every financing solution is what’s best for your financial situation. For example, a home equity loan may not be the best choice if you haven’t paid off that much of your mortgage yet.

It’s important to compare all of your pool financing options properly and speak to a financial expert before you apply for any of them. 

Worried that your bad credit might be an issue? Learn how to improve it here

Preparing to Apply for Pool Financing

Depending on the option you’ve selected, applying for pool financing can be relatively simple or more complicated, as each solution comes with a different level of financial responsibility.  A credit card, for instance, is typically easier to obtain than an installment loan. 

Nonetheless, being prepared for the application process is one of the best ways to get approved for an adequate amount of credit, an affordable interest rate, and an adjustable repayment plan. Make sure to organize your finances for your lender’s inspection and ask yourself some of the following questions before you apply:

Is Your Credit Score High Enough? 

For most lenders, a credit score of 660 – 900 is a sign that you’re more likely to make payments on time. The higher your credit score is, the less risk you present and the better your pool financing conditions will be.

Do you know what your credit score range means? Find out here

Can You Afford Your Monthly Payments?

You must also prove that you have an income and savings that would support all costs associated with your pool financing. Any short, late, or missed payments could result in a reduced credit score and other financial problems that are hard to recover from.

Is a Pool Going to Bring Value to Your House?

Although some pools are expensive, they can also add value to your property, which is great if you plan to sell it someday. Additionally, the more valuable your home is, the more equity it will collect. However, this might drive up the price of the property, making it less affordable for a lot of prospective homebuyers in the future

Check out this article to learn more about adding value to your home. 

Are There More Important Expenses You Should Focus On? 

For obvious reasons, a pool may not be the best financial weight to take on. In fact, it may be totally out of your budget, especially if you have other, more important monthly expenses to deal with, such as your mortgage payments and credit card bills.

What Are Your Debt Levels?

When applying for pool financing, your unpaid debts make a huge difference in the conditions you’re eligible for. After all, the more likely you are to default on your payments, the less credit your lender will offer and the more interest they will charge, which could certainly result in unmanageable debt levels. 

Choosing the Right Type of Pool Financing

Prior to selecting your preferred method of pool financing, it’s essential to consider the following factors:

  • How much financing you need
  • How expensive your interest rate will be
  • The conditions of your repayment plan
  • The length of your loan term 
  • The final cost of the pool and labour 
  • How much maintenance the pool requires over time

Pooling Financing FAQs 

Remember, pool financing is a big responsibility and must be handled with care. So, before you start cycling through your lending options, be sure to consult a professional financial advisor and inquire about some of these frequently asked questions:

Will adding a pool add value to my home/property?

  • It’s very possible, as most pools are luxury items that plenty of homebuyers want, potentially making them a great addition to any property.

How difficult is it to qualify for pool financing?

  • This depends on lending source you choose, how healthy your finances are, and what kind of security you’re able to offer. Generally speaking, most prime lenders (banks, etc.) will have tougher approval restrictions than subprime lenders.

How much does the average above ground pool cost to finance in Canada?

  • While above ground pools will surely range in size and where you can build them, most will cost $250 – $7,500 (not including labour and installation costs). For instance, a pool or hot tub that’s housed by a deck you’re building will likely cost more than one you can assemble on your lawn. 

How much does the average inground pool cost to finance in Canada?

  • This varies significantly depending on where you buy your pool and how large you would like it to be. Cheaper fiberglass models will generally cost $12,000 – $35,000, while full cement pools may range upwards of $50,000 (plus $1,800 – $3,200 yearly for maintenance and utilities).  

Find Your Pool Financing Today

If you’re looking to increase the value of your home and cool off in the process, adding an in-ground or above-ground pool to your property may be the best way to do it. What’s more, you can rest easy knowing that Loans Canada is always here to help you find the best sources of pool financing in your area of the country.   

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