Why get a pool loan through Money.com.au?
Personalised rates
Know exactly where you stand with interest rate quotes tailored to your specific circumstances.
No credit score impact
Compare with confidence knowing you can find your best rates without damaging your credit score.
What is a pool loan?
A pool loan is a personal loan that you can use to finance the cost of installing a pool or spa.
Here’s what you can typically get with a pool loan:
- 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 personal loan options
- Your interest rate will be tailored to you
Pool loan interest rates in Australia start from 5.76% p.a. (comparison rate* 6.55% p.a.), but the interest rate you actually get will be personalised to you.
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.
There are also home renovation loans available if your new pool is part of a wider home improvement. This type of finance works similarly to a pool loan, with both secured and unsecured options available.
How to compare pool loans
Aside from the interest rate, there are other factors to consider that will affect how much you’ll need to fork out for pool finance. And with pool builds costing between $10,000 and $100,000, it’s important to get the best loan to keep costs low.
Here are the main factors to keep in mind:
Interest rate
Look for competitive interest rates that you actually qualify for. Personal loan rates typically range from 6 to 30%, but your rate will be based on your specific circumstances.
Fees
Aim to minimise the upfront and ongoing fees that some lenders charge, plus extra repayment fees. If you need help navigating these fees, a personal loan broker can lay out your options to see which offers have no or low fees.
Loan term
A longer loan term will mean lower regular repayments, but you’ll pay more in interest. You’ll pay less in interest with a shorter term but have higher repayments The average personal loan term is just under three years, but with a pool loan where the borrowing amounts tend to be higher, a longer term might make sense.
Flexibility
Look for loan flexibility to make repayments weekly, fortnightly or monthly. Plus the option to make extra repayments and repay the loan early without incurring fees. If you do repay extra, some pool loans offer redraw, which allows you to withdraw your extra repayments if needed.
Fixed vs variable rate 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 and budgeting 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. For instance, you might not be able to make extra repayments and repay the loan early. The trade-off is that fixed loans offer more certainty overall.
Applying for pool finance in Australia
Once you’ve worked out the budget for your project, getting pool finance is usually a simple process. Here’s a step-by-step guide on what’s typically involved:
1
Compare pool finance providers
There are dozens of banks, credit unions and specialist lenders that offer pool loans in Australia. Compare deals based on interest rates (remember, the advertised lowest rate may not apply to you), comparison rates (takes into account interest charges and fees but is based on a specific loan amount, which likely won’t be representative of your loan), as well as terms available.
2
Check your credit score
Before you apply, check your credit score to make sure you’re in a good position to get approved. You can do this for free online using Equifax or another credit reporting agency. If your credit score is less than average, you may want to consider a bad credit personal loan.
3
Submit a loan application
Once you’re happy with a particular loan, submit an application to the pool finance provider (this is usually done online and can be done in about 10 minutes with some lenders). Or, use a personal loan broker if you’re stretched for time or need help with your application.
4
Provide supporting documentation
If requested by the lender (or via your broker), provide any supporting documents such as your payslips, bank statements or tax certificates. If your application is complex, like if you’re self-employed, you might need to apply for pool finance through a low doc personal loan as you won’t have the usual documents as a PAYG employee. It just means the lender will likely require additional documentation to verify your income and financial position.
5
The lender will assess your application
Wait for your finance application to be assessed, which generally happens quickly.
6
If approved, sign a loan contract
Once everything is signed and sealed, 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 to 2 business days. For complicated applications, the process will take a bit longer.
Other ways to finance a pool
While a pool loan is a popular choice for many homeowners, there is another way to finance it. You can use the equity in your home to refinance, otherwise known as a ‘mortgage top-up’. This is where you top-up your home loan balance and tap into your equity to fund your pool.
There can be advantages to doing this, but the cost is generally spread over a much longer loan term. This means you’ll likely be charged more in interest, particularly if your home loan term is 20+ years.
Here’s a quick comparison outlining the main differences between a pool loan and refinancing your mortgage.
Pool loan vs home loan refinance
Amount available | |
Pool loan | Up to $100,000 |
Home loan refinance | Depends on home loan balance and your property’s value |
Interest rates | |
Pool loan | Starting from 5-6% |
Home loan refinance | Starting from 4-5% |
Loan term | |
Pool loan | Up to 7 years |
Home loan refinance | Up to 30 years |
Property valuation required | |
Pool loan | No |
Home loan refinance | Yes |
Security required | |
Pool loan | Optional |
Home loan refinance | Yes |
| Pool loan | Home loan refinance | |
|---|---|---|
Amount available | Up to $100,000 | Depends on home loan balance and your property’s value |
Interest rates | Starting from 5-6% | 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 does it cost to build a pool?
Building a pool costs between $10,000 and $100,000, but the exact amount will depend on the type of pool (i.e. is it a plunge pool, full-size lap pool or spa?), plus its location, among other factors.
Here are some basic (and not-so-basic) considerations:
- Materials: The most common pool materials are concrete, vinyl-liner and fibreglass. Vinyl-liner pools (the ones above ground with frames) start from around $10,000, while a common fibreglass pool can begin at $25,000. Concrete pools usually start from $25,000, but have a much higher scope for expansion and additional features, like infinity, waterfall, etc.
- Construction: If you’re opting for an in-ground pool, you’ll 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.
- Ongoing costs: Think maintenance costs associated with water filters, servicing and replacements, pool sanitisation, chemicals, pool covers or cleaners and heat pumps. Adding a pool will also increase your household energy costs due to the pump constantly being in operation.
Most lenders will let you borrow up to $100,000 for a pool loan, but they’ll assess your actual borrowing capacity based on your income, credit history, expenses and debts. If you’re viewed as a greater risk based on these factors, you may not be able to borrow as much, or you’ll be charged a higher interest rate and/or fees.
Can you get pool finance if you have bad credit?
Yes, there are specialist lenders in Australia who offer personal loans to bad credit borrowers for a range of purposes, including financing a pool. If you have an issue in your credit history, expect to be charged a higher interest rate (often above 15%).
That’s why it’s a good idea to do a free credit check to see where you stand before applying.
Something to keep in mind is the cost difference between pool loan offers with different interest rates. For example, a $50,000 pool loan with an interest rate of 7.5% p.a. and 5-year term, will cost you roughly $10,114 in total interest. Whereas an interest rate of 15.99% p.a. will cost you $22,938 in total interest – that’s an eye-watering $12,824 more (ouch).
Will a secured personal loan make the pool finance cheaper?
In most cases, a secured personal loan will be cheaper as the finance will be backed by an asset (i.e. your home or vehicle). However, it’s more common for pool finance to be unsecured, meaning there is no asset attached to the loan.
You can use the comparison table at the top of this page to filter pool loans as secured or unsecured.
Ready to compare pool finance?
Get your best offers from multiple lenders. There's no obligation and checking your rates won't impact your credit score.
Quickly work out
Rebuiding your finances
Life change planning
