June 2, 2023

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Garden pool: three options for borrowing | MyGuide

Spaargids.beDo you also want to evoke that wonderful holiday feeling in your own garden this summer, with the help of your own swimming pool? However, you may currently lack the financial resources for this. And so you wonder how you can borrow for it. Spaargids.be List of possibilities.

Option 1: Renewal or Renewal Loan

To get started, you can choose a renovation or renovation loan to finance your pool construction. Such a loan has a number of advantages: you can get the loan quickly (without a lot of administration), you don’t have to put up a mortgage security and there’s no notary involved, so you don’t pay any notary fees.

But a renewal loan also has a major drawback: You may pay more interest. In mid-March 2023, interest rates will increase from 3.69 percent to 9.99 percent. Suppose you borrow 40,000 Euros from Belvius, which you will pay back in five years, at an interest rate of 3.99 percent. Then you pay €735.19 per month, for a total of €44,111.40, of which €4,111.40 is interest (calculated on March 10, 2023).

A renovation loan is especially interesting if you want to borrow a relatively limited amount. Yes, the interest may be higher than on a mortgage loan, which we will talk about a little later. But on the contrary, you do not have to pay some of the costs of the mortgage loan, which can offset the higher interest of the renewal loan.

Where do you currently get the best interest rate to finance your project? Click here to easily compare renewal loans.

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Option 2: a mortgage loan

You can also take out a mortgage for your swimming pool. You usually pay less interest for such a loan than you would with a renewal or renovation loan. Currently you will find mortgage loans at a rate of 2.86 percent to 5.38 percent. Term may vary. But know: The longer you take to pay off your balance, the more expensive it will be. In addition, you have to pay some additional costs: file costs (no more than 500 euros), appraisal costs (to estimate the value of your home, if you gave it as a mortgage) and notary costs to register the mortgage loan in the deed notarially.

For example, would you borrow 40,000 euros at a fixed interest rate of 3.5 percent, and pay it back in five years? Then you pay €726.69 per month. So, a total of 43,601.18 euros, of which 3,601.18 euros is interest (calculated on March 10, 2023), but there are also file costs, appreciation and notaries.

In other words: a mortgage loan becomes interesting if you want to borrow a larger amount. Then the loan starts to cost you less than a renewal loan, thanks to the lower interest rate, and despite the additional costs.

advice: Find the cheapest mortgage with our comparison on Spaargids.be.

Option 3: Withdraw the paid-up capital

Finally, home loan recovery is also one of your pool financing options. Did you take out a mortgage less than thirty years ago, for which you have already paid off a large amount? Then you can borrow the principal again, under the same mortgage. Admittedly, the interest rate in effect today is, but it may still be lower than the interest rate for a renewal loan. Furthermore, you don’t pay any new notaries nor do you estimate costs.

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Please note that the bank is under no obligation to allow you to do so. Perhaps your credit rating has changed, or the policy of the relevant bank has changed.

Read also on Spaargids.be:

Borrowing to increase your enjoyment of life and the value of your home: These renovation loans are provided by the government and banks

Buying a home, building or renovating plans? Watch out for these additional costs of your home loan or renovation

Ten times more bicycle loans are taken out than five years ago: this is how much interest in euros you pay per month

This article was brought to you by our partner Spaargids.be.
Spaargids.be is an independent comparator of bank products and looks for competitive pricing and better interest rates.