5 Pool Financing Options in Canada

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Hot summers are the norm in Canada. On an average July day, temperatures can reach anywhere from 30-34 degrees celsius. And on beautiful sunny days like these, no one wants to be stuck in the house – but no one wants to overheat outside either. The solution? A pool!

A pool is a great way to cool off and stay entertained on hot summer days – and it can actually increase the value of your home. But pools can be expensive. Luckily, you don’t have to pay it off upfront. Instead, there are plenty of options for pool financing in Canada.

Benefits of Owning a Pool

There’s little doubt that a pool can provide hours of endless entertainment, but there are lots of other benefits that come along with owning a pool as well.

Firstly, and probably most importantly, pools are excellent for your physical health. Swimming is an excellent cardiovascular activity and can help to build both strength and stamina. It can also help to decrease stress and improve mental state.

In addition to improving your physical health, a pool can also help increase your home’s value. In some cases, owning a pool can increase the value of your home by up to 7 percent. Pools also add a visual appeal to your home, increase the amount of time spent with family, and are great for entertaining guests. 

How much does a Pool Cost in Canada?

The exact cost of a pool will depend on various factors, including whether or not you have an above-ground or in-ground pool. Because above-ground pools require less work and labour to install, they generally run quite a bit cheaper than inground pools.

With that being said, inground pools are generally more sought after and are considered the better option for increasing the value of your home. Other factors that will affect the cost of your pool include the materials used (fibreglass, steel, or concrete), the shape of your pool, and the dimensions of your pool. Obviously, the larger the pool, the more you should expect to pay.

According to HomeGuide.com, the average above-ground pool costs between $1100-$3500 without installation. Professional installation generally costs an additional $1000-$3000, so by the time you have your pool completely installed, you should expect to pay somewhere between $2100 and $6500. 

In-ground pools are more sought after and require more labour and work in terms of installation. For this reason, they can cost quite a bit more. In Canada, you should expect to pay a minimum of $25 000 for a new pool, including installation fees. 

Of course, there are other costs that you also need to consider when purchasing a new pool. When you pay as much for a pool as you do, you’ll want to make sure you keep it well maintained.

You should expect to pay between $50-$150 per year in maintenance fees to keep your pool clean. You’ll also need to have a fence installed (if you don’t already have one) and will need to purchase additional insurance for your new pool.

If you want to heat your pool, you’ll also have to purchase a water heater ($1500-$4000) and consider the electrical costs associated with heating. 

What pool financing options are available?

Most people can’t afford/don’t want to pay for a pool outright – it’s too expensive. So the majority of people finance their new pool instead. When it comes to financing, there are several different options available.

1. In-house financing

When you purchase a pool, sometimes the company that you purchase from will offer in-house financing. Many companies provide this as an incentive to use them instead of other retailers.

Many in-house companies will also offer additional savings and benefits if you choose to finance through them and will have their own installation team to help save you money when hiring a contractor. 

2. Line of Credit

A line of credit is a flexible option that your financial institution offers. Line of credits can be used and paid off at any time. Once you pay off your line of credit, you then have the option to re-use those funds.

The main benefit associated with lines of credit is that their interest rate is often much lower than that of a credit card. They are also very flexible.

3. Personal Loan

The alternative option to a line of credit is a personal loan. You can also get these at your financial institution. The main difference between a personal loan and a line of credit is that a personal loan is not reusable. You also pay more interest on a personal loan than you do a line of credit. 

4. Refinancing your Mortgage

If you don’t want to take any loans, you can also refinance your mortgage. With that being said, this is only possible if you’ve added equity (value) to your property.

More specifically, equity is the difference between your home’s value and the balance left on your mortgage. If you have equity in your home, you may be able to refinance your mortgage and borrow back money from your property. 

5. Credit Card

We rarely recommend credit card usage for anything, mainly because the interest is so high. You can, however, use a credit card to finance your pool as a last resort.

With that being said, you would need to have outstanding credit in order to obtain a credit card that could pay for an entire pool. You would also want to make sure that you have sufficient funds to repay the loan quickly to avoid heavy interest charges. 

Should I Consider Financing a Pool?

As we’ve seen, a pool can be a great investment for many reasons. Experts say that an average 14×28 foot inground concrete pool could potentially add 5 to 8 percent to the real estate value of your home. 

But a pool is a big investment, and if you can’t afford to do it, it could put you in a lot of debt. Here are some questions to consider before you go searching for a loan or financing option:

What is your credit score? 

Before you can even obtain a loan for a pool, you’ll need to take a look at your credit score.

You may be able to obtain small loans with poor credit, but it’s unlikely that any financial institution will lend you over $25 000 if you don’t have credit.

So check out your credit score. If it’s not good, you can work on building it up by keeping your balances low and making payments on time. 

Can you afford to make the payments?

No matter which type of financing you choose for your pool, you’re going to have to pay back the loan with interest.

Different types of loans have different interest rates, but you could go into debt quickly if you don’t pay them back on time.

If you’re going to finance a pool, you want to make sure that you have the funds coming in to make your monthly payments and pay off your loan as quickly as possible.

Are there more important things you should be focusing on?

A pool makes a great addition to any home, but it’s far from a necessity. Focus on the necessities of homeownership first. How are you doing with those? Are you able to pay all of your bills on time?

Is there anything else that you need that’s more important than a pool – perhaps a new car or a new furnace? Focus on the most important things, and then consider financing a pool if you are managing well. 

In conclusion, there are lots of different ways that you can finance a pool – and if you can afford to do it, there are many benefits that come along with the new addition. Once again, pools aren’t necessities, and you should focus on the more important things first so that you don’t go head over heels into debt. 

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.