Swimming Pool Loans – Monzi’s Guide

Swimming pool loans may get you the cash you need to cool off this summer. Get the funds you need to cover materials, construction and installation while spreading the costs of the coming years. Read on for Monzi’s comprehensive guide to swimming pool finance. Let’s go.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

Can you get a loan to put in a pool?

Yes.

That’s exactly what swimming pool loans are for. You can get the funds you need to pay for the materials, construction and installation of your pool.

Obviously, the size of your loan will depend on the pool that you are building. In-ground pools are typically more expensive than above ground pools while the size, depth and materials will impact the total costs too.

As a result, costs can vary significantly. While some pools may come in under $10,000, others can cost close to $100,000.

That’s why it’s crucial to assess your needs and means. Understand what you can afford to spend and use that to determine that right pool for you.

At the end of the day, a swimming pool is a luxury not a necessity. As a result, ensure you only borrow what you can afford to repay.

Bear in mind, you can apply for up to $10,000 with Monzi.

Swimming pools loans: the additional costs

While building a swimming pool can seem like a great idea, the costs go far beyond just repaying a swimming pool loan. It’s estimated that annual pool upkeep costs can be up to $5,000.

Costs may include:

  • Additional water and electricity expenses
  • Heating (if you select a heated pool)
  • Chemicals (e.g. chlorine)
  • Maintenance equipment (e.g. filters)
  • Fencing
  • Shades
  • Repairs (e.g. tiling)
  • Higher insurance premiums
  • Paving or tiling around the pool area.

So, while the dream of having your own private swimming pool is a fun one. It’s important to understand what you are getting yourself into. The costs can be substantial and if you are unprepared for that, you can stretch your budget to breaking point.

As a result, do your research and assess your financial situation to determine if a swimming pool is the right choice for you.

Swimming pool loans: building the right pool

Pools come in a range of different shapes and sizes. As a result, it’s important to select the design that works best for your budget and your backyard too.

As a guide, design your pool based on the following five factors:

  • In-ground or above-ground: above-ground pools are usually cheaper. However, in-ground pools are more aesthetically pleasing.
  • Size: you don’t need an Olympic sized swimming pool in your backyard. Although, if it’s too small that’s not fun either. Find the right balance and consider the space you have available too.
  • Shape: above-ground pools are typically only ovals or circles. On the other hand, you can tailor inground pools to fit your backyard.
  • Depth: The deeper the pool, the more expensive it will be and the more water it will need. However, most pools have a graduated depth (i.e. a shallow end and a deep end).
  • Materials: options include concrete, fibreglass or vinyl. Do your research to determine which is right for you.

How do you finance a pool?

First things first, you will need to find a lender or bank that’s willing to offer swimming pool loans. From there, you will need to apply for a loan. Obviously, the size of your loan will depend on the amount you have saved and the total cost of your pool.

Finally, if you are applying for a secured loan then you will need to provide an asset as security. This could include your car or home equity.

If your application is approved and you agree to your contract then you will receive the funds you need.

What credit score is needed for swimming pool loans?

In short, this will vary. All lenders have different requirements and criteria meaning we are unable to provide a specific answer.

However, given that swimming pool loans are often quite large, having a good credit score is often a plus for lenders. In addition to this, you will need to show that you are in a secure financial position.

In saying this, there may be some lenders who are willing to offer swimming pool loans for bad credit. However, these loans will only be offered at the lender’s discretion.

How much does it cost to finance a pool?

As we’ve already mentioned, swimming pool costs can vary significantly based on the size, shape, type and materials of the pool you’re installing.

As a result, you may need to borrow anywhere from just a few thousand dollars all the way to tens of thousands. And that’s just your principal loan amount.

All swimming pool loans will have interest applied meaning the total cost of financing your loan will be even higher. However, this cost will be divided evenly into a series of manageable repayments.

Are swimming pool loans hard to get?

This will depend on your circumstances and the loan that you are applying for.

Obviously, if you are in a secure financial position and have a good credit score then accessing finance may be much more realistic than if you were a bad credit applicant.

In saying this, swimming pool loans are often quite large. As a result, lenders won’t cut any corners and will thoroughly evaluate your circumstances to determine if you are suitable for credit. Given this, approval is not certain as you will need to meet a number of criteria.

How many years is a typical pool loan?

This will depend on the size of your loan as well as the repayment terms offered by your bank or lender.

As a guide, repayment terms for swimming pool loans typically start at around seven to ten years and may range all the way up to 20 years for large swimming pool loans.

Ultimately, you will need to select the loan term that works best for your circumstances. While we all want to get out of debt ASAP, you must still ensure your repayments are affordable. As a result, finding the right balance is crucial.

Can you roll the cost of a pool into your mortgage?

Yes, it may be possible to roll your pool costs into your existing mortgage. However, consult with your lender to determine if this is an option for you.

Mortgage rates are usually much lower than those for swimming pool loans meaning you may be able to save yourself a significant amount on interest payments by rolling the costs into your mortgage.

In addition to this, rolling the cost into your mortgage means you still only need to worry about making one single mortgage repayment. This can make your life much easier.

However, as mentioned, consult with your lender to determine if this is an option for you.

How can I finance a pool with bad credit?

If you’ve got bad credit then accessing pool financing may be difficult. In saying this, some lenders may be willing to offer swimming pool loans for bad credit. However, these loans may come with higher interest rates to account for the lender’s additional risk.

In addition to this, if you’ve got bad credit, you will need to secure the loan with an asset. This will guarantee the loan. In other words, in the event that you default on your repayments, the lender will be able to repossess the asset (e.g. your car) and sell it to recover their losses.

Ultimately, not all lenders will be willing to accept bad credit applicants. As a result, approval is not certain and it may come down to the lender that you are dealing with.

Swimming pool loans girl in white swimsuit with tube
< h2>What is the cheapest inground pool?

Inground pools are usually more expensive than above-ground pools. This makes sense given that there’s more work required. While they may be more expensive they are typically more aesthetically pleasing.

In terms of the cheapest inground pool, providing an accurate figure given that your pool cost will vary based on a number of factors (e.g. size, shape, depth, etc.).

As a guide, total costs may range from approximately $20,000 all the way up to $100,000. However, this is simply a rough outline. You will need to get professional quotes and estimates before construction to determine what your total costs may be.

How much are monthly payments on swimming pool loans?

In short, this will depend on how much you borrow as well as your repayment term.

For instance, if you opt to repay your loan over a 10 year term then your monthly repayments would be significantly smaller compared to some who selected a 5 year repayment term.

Given this, it’s up to you to select the right term to ensure your monthly repayments are affordable for your budget. Ultimately, try to balance repaying your loan in an efficient manner with repayments that fit comfortably with your budget. That will give you the best chance of managing your debt effectively.

How much will a pool increase my electricity bill?

In order to maintain your pool, you’ll need to have your filter running everyday. This is going to add to your electricity bill.

As a guide, it’s estimated that your filter can add up to $1,000 or more to your annual electricity payments. That’s before you even consider heating costs too.

If you opt to install a heated pool then your additional annual electricity costs will far exceed the $1,000 estimate. This is something you will need to account for before you apply for your loan.

Is a pool worth the money?

Ultimately, it’s up to you. While having a pool in your backyard seems like the dream, they’re often not all they’re cracked up to be. Ask any current pool owner and you’ll find plenty of them who consider their pools to be a waste.

Whether it’s the additional costs, the limited use or the fact that most pools can only be used for six months a year, often you don’t end up getting value for money.

In saying that, if you feel that it’s the right decision and can afford it, by all means go ahead. You’ll get endless hours of joy from it. Especially, if you’ve got kids to entertain.

Not only that, they’re the perfect way to beat the heat during Australia’s long, extended summers.

Swimming pool loans calculator

When you’re planning your pool, one of the first things you should do is use a swimming pool loan calculator. They’ll give you an estimate of what your repayments and total loan cost will be, based on your loan details.

Not only that, you can see how borrowing more or selecting a longer repayment term would affect your costs too. From there, you can assess how a loan might fit with your budget.

These loan calculators are offered for free, online by a range of lenders, financial institutions and banks. They’re easy to use too. Why not check out the calculator available on ASIC’s MoneySmart site?

However, keep in mind that all figures are only an estimate. Actual repayments may vary.

Swimming pool loans and Monzi

At Monzi, we may be able to match you with a lender offering personal loans up to $10,000. Moreover, you’re free to use your personal loan to cover the installation of a pool.

Small loan$300 to $2,000Over 12 months
Medium loan$2,001 to $4,60013 to 24 months
Large loan$5,000 to $10,00013 to 24 months

Note – repayment terms may vary to what we present above.

Factor In

Costs

Two credit cards
Two credit cards

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000

Terms

12 months

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate

Loan amount

$2,001 - $4,600

Terms

13 months

24 months

Costs

48% annual percantage rate

67.41% comparison rate p.a.

Example

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000

Terms

13 months

24 months

Costs

21.24% annual percantage rate

48% comparison rate p.a.

Example

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.