Which loan should I choose to finance the construction of my swimming pool?

Having a pool at home is a dream for many homeowners, but it requires a significant budget. Indeed, between theprice of a shell pool, landscaping work, and the purchase of accessories, the investment can be substantial.

Fortunately, severalfinancing optionsare available. Selecting thetype of loansuited to yourpool projectis essential for borrowing with peace of mind and full knowledge. Follow the guide!

How much does a shell pool cost?

Tofinance your shell pool project, it is essential to fully understand the expenses to anticipate in order to avoid any unpleasant surprises. Less expensive than an in-ground (or semi in-ground) concrete pool and more attractive than an above-ground pool, thistype of poolremains a significant investment, potentially reaching several thousand euros.

As a general rule, thecost of a ready-to-swim shell poolvaries depending on the size of the pool, the desired outdoor features, and the necessary accessories. AtAboral Piscines, our packages generally range from €12,000 to €35,000, including installation, making it an attractive option for those looking for a turnkey project with a controlled budget.

By taking these costs into account from the start, includingearthworks, you will be able to set a realistic budget and choose the most appropriate financing to carry out your project with peace of mind.

How to finance your shell pool project?

Before starting theconstruction of a shell swimming pool, carefully examine the differentfinancing optionsavailable to you. Building a swimming pool represents a significant investment, and choosing the right type of credit can make all the difference.

The different types of swimming pool credit

Consumer credit

Thepersonal loan (home improvement loan)is a form of consumer credit that offers some flexibility forfinancing your swimming pool. It comes in two main types: the designated loan and the non-designated personal loan:

• Theearmarked loanis specifically designed to finance a determined project, such as the construction of your swimming pool. In this case, the funds are directly linked to the completion of the work, which means that supporting documents such as quotes or invoices will need to be provided to release the money. One of the key advantages of this credit is that if your project does not go ahead, the loan is cancelled, thus saving you from having to repay for a project that was not completed.
• Theunsecured personal loan, on the other hand, offers you greater freedom in using the funds, without having to justify your expenses. However, this flexibility means that loan repayment begins immediately, even if thepool projectis delayed or cancelled.

Another option, although less suitable for a project of this scale, is therevolving credit, also called "revolving". It is a reserve of money available at any time, which is replenished as repayments are made. Although practical for unforeseen events or small expenses, this type of credit is generally less recommended forfinancing a swimming pool, due to its often higher interest rates.

Can a swimming pool be included in a mortgage?

It is possible tofinance your swimming poolby including it in yourmortgage, provided that the latter is taken out at the time of purchasing your property. This approach allows you to combine the purchase of the property and theconstruction of the swimming poolinto a single loan. However, this is generally only applicable toin-ground or built-in swimming pools, as they are considered a permanent improvement, thus increasing the property's value.

To include thecost of the swimming pool in your mortgage, consider discussing it with your bank from the very first steps of your loan application. This must be done before the loan agreement is finalized, as once it has been granted, it is no longer possible to adjust the borrowed amount to include additional work.

How to build a solid case for financing your swimming pool?

Simulate the financing of your swimming pool

Before embarking on yourpool project, it is essential to accurately assess the necessary funds. Here are the steps to follow:

• Assess the overall project cost: Identify all the elements that will make up thefinal cost of your pool, including the purchase of materials (pool shell, equipment, accessories), installation costs, and any potential landscaping work. A precise estimate will allow you to determine the exact amount to borrow.
• Analyze your repayment capacity: Examine your financial situation to determine how much you can dedicate each month to repaying your loan. Take into account your income, your current expenses, and your other outstanding loans. It is also important to choose the loan term based on the amount of monthly payments you are able to support.
• Make anonline credit simulation: After determining the necessary amount and the desired duration, use an online loan simulator to explore different options. This will allow you to compare available loans, whether it's apersonal loanor aloan for swimming pool construction. The simulation will provide you with an estimate of the monthly payments, the total cost of the credit, and the applicable interest rate.

Compare the different pool loan offers

After completing your simulation, it's time to compare the differentfinancing solutionsavailable. Here are the essential points to consider:

• TheAPR (Annual Percentage Rate): The APR is the main indicator to consider when comparing offers. It includes all costs related to the loan, including interest rates, application fees, and insurance. By comparing APRs, you get an overview of the total cost of each loan, allowing you to make an informed choice.
• Theamount of the monthly paymentsand therepayment period: The amount of the monthly payments depends directly on the loan term. For example, for a loan of €20,000:

• Over 60 months (5 years), the monthly payment will be approximately €350;
• Over 120 months (10 years), it will decrease to around €175;
• Over 180 months (15 years), the monthly payment could be around €120.

As you can see, a longer repayment term reduces the monthly payments, but increases the total cost of the credit due to the accumulated interest.

• Borrower's insurance: For long-term loans, borrower's insurance plays a crucial role. It covers your repayments in case of work incapacity, disability, or death. It is essential to carefully study the conditions of this insurance, as it offers additional protection, particularly important for long-term loans.

Want to get a quote for yourpool project? Contact our team of experts directly, they will be happy to contact you as soon as possible to offer you a custom-made pool that fits your desires and your budget!