by FurnaceFinancing.ca Staff | Oct 13, 2021 | Guides |
For much of the year, Canada enjoys mild temperatures. However, in some regions or at seasonal extremes, our weather can become rather difficult to bear. Because of this, homes throughout Canada continue to utilize air conditioners.
AC units are tremendously helpful tools for keeping your home warm or cool throughout the year. However, even the best systems run into problems eventually. If your system seems to be on its last legs, the last thing you want is to go through winter without an HVAC unit.
In times like these, people wonder about air conditioner financing. How much does it cost to replace an air conditioning system?
Typically, a new system will cost between $1,500 and $2,800 on its own. However, installation costs could cause the total to fall between $4,500 and $5,500+. A complicated job could cost as much as $10,000!
If this sounds stressful, don’t worry! In this guide, we’ll walk you through your options for financing heating and air conditioning services. We’ll even throw in some tips for keeping your costs low throughout the year!
Options for Air Conditioner Financing
A cost range of $4,500 to $5,500 is a sizeable sum for many families. Affording these expenses could be a challenge if you don’t receive outside help.
Fortunately, you don’t have to pay for all of this out of pocket. There are several financing options available that help you afford your new system. Some of these include:
- Home equity loan
- Home equity line of credit
- Personal loan
- Contractor financing
Each of these options has different cost ranges depending on their interest rates. We’ll explore these options in more depth in the sections below.
Home Equity Loans
A home equity loan is a second mortgage. These loans allow you to borrow money against the equity you’ve accumulated by paying off your current mortgage.
Why choose this option, you ask? One primary benefit of this method is that its interest rates are typically lower than credit cards or personal loans. As a result, you can save more money in the long run.
These loans also allow you to cut the interest you pay on the loan from your taxable income. However, there are limits as to how much you can borrow from your equity. The standard maximum falls around 85%.
Home Equity Line of Credit
Like home equity loans, this option allows you to use your current home equity. In this case, you’ll use the house’s equity as collateral against which to borrow money in this line of credit.
Your interest rates may vary, as you’ll pay interest for whatever amount of equity you use. The typical cap on how much interest you pay is often around 80%. Sometimes, though, the cap may fall nearer to 90%.
Unfortunately, interest rates aren’t the only cost to consider in this process. In addition to these, you’ll also need to pay closing costs.
Personal Loans
Personal loans are multipurpose loans you can use to finance several personal projects. These include financing a new heating and air conditioning system.
Unlike the previous options, personal loans deliver a lump-sum installment over the course of several months. The rates you receive depend on your credit score.
If your credit isn’t where you’d like it to be, there are still personal loan options for you. However, understand that these methods will likely be more expensive.
How do you qualify for personal loans? Most lenders will examine three primary factors:
- income
- credit score
- current debt
If these factors balance out in your favour, the companies will likely qualify you. Once this happens, the lender will set the terms for your loan.
Air Conditioner Rent to Own
Another option for financing your air conditioner is to avoid purchasing one at all. Instead, you can look for an air conditioner rental. In many cases, these packages include a furnace rental as well.
Renting your system from heating and cooling companies can vary in cost depending on which company you rent from. However, renting can save you money in several ways.
When you rent systems, you can choose from the most up-to-date and efficient models on the market. Selecting these options can result in significant savings on your monthly energy bills, sometimes up to 45%!
Typically, companies charge you a monthly rate for your rental. Thoroughly examine the rent agreement before signing with anybody.
Methods for Saving Money with Air Conditioners
Once you finance an air conditioner, you probably want to avoid paying high energy bills each month. If you can avoid giving the system too much wear and tear by doing so, even better! So, in this section, we’ll cover some methods for saving money with your air conditioning system.
First, keep your central air conditioning unit under the shade. This practice especially helps in the summer, when the sun beats down on the unit. Keeping it in the shade helps maximize its efficiency.
Furthermore, keeping your air filters clean goes a long way to extending your unit’s lifespan. Clogged filters cause systems to overwork themselves. Over time, this leads to damage in the HVAC system that may need repairs.
Another tip is to keep your AC on low power when you’re out of the house. Many people think they can save money by turning the AC off before they leave. In reality, it takes more energy for air conditioners to start again than to keep them running.
So instead of cutting off the unit, keep the thermostat set to a high temperature. This approach saves the system from overworking itself.
Find Your Air Conditioning Financing Today
Hopefully, you’ve found the answers you need for air conditioner financing. You now have an idea of what method would work best for your financial needs. Now, all you need is to find the company that can provide you with that money.
If that’s all you need, try out our services! We offer several financing options for people in all economic situations. Contact us today to receive a free quote!
by FurnaceFinancing.ca Staff | Oct 6, 2021 | Guides |
The winter season usually means snow and pumpkin spice latte. The summer season means barbeque and pool parties. You can’t control the fun weather outside, but you want some control inside.
But what happens if your furnace is not working? Luckily, furnace financing can help you get a brand new furnace without breaking the bank. Continue reading to learn what to expect with furnace financing.
What Is Furnace Financing
HVAC financing refers to the process of obtaining a personal loan to pay for a new HVAC unit. You repay this loan in regular monthly installments over a certain period.
Thus, HVAC financing enables you to get a new HVAC system when you need it. You don’t have to have funds to pay for it upfront. Financing is available for both ductless and conventional heating and air conditioning systems.
The Benefit of HVAC Financing?
The advantage of financing your new heating unit and air conditioner is that you may replace older, damaged equipment immediately. If your HVAC equipment fails during the winter, you may be exposed to dangerously low temperatures. On the other hand, if your air conditioner fails during the summer, you may be forced to endure uncomfortable or even hazardous high temperatures and humidity.
In any case, your house will be unpleasant until the damaged unit is replaced. Without financing, you may have to wait many months before you can purchase a new HVAC system.
Why Should You Apply for HVAC Financing?
Even if you have the cash on hand to pay for your new HVAC system in full, you may want to apply for financing. The following are a few reasons why:
You Do Not Want To Spend All of Your Money
You may need that money for another purpose. HVAC financing enables you to maintain a healthy bank account with funds set up for a rainy day.
Improve Your Credit
HVAC financing may enable you to improve your credit score. All you have to do is make on-time monthly payments.
Purchase What You Want
With an HVAC loan, you may be able to purchase the system you really want. You will not have to settle for the cheapest one available. While we take pleasure in delivering only the highest-quality HVAC systems, some are more costly than others.
What Credit Score Do You Need to Finance a Furnace?
Most lenders that finance HVAC systems will need a credit score in the mid to upper 600’s. However, if your credit score is lower than this, you may still qualify for an HVAC finance personal loan.
Additional Financing Options for Your New HVAC System
Direct HVAC finance and lease-to-own options are not the only HVAC financing alternatives available. You can consider air conditioner rental.
If you utilize an external lender, some heating and cooling companies may replace your unit. For instance, you may want to use a home equity loan or line of credit. Additionally, you may get a personal loan from your bank or another lender via special financing.
Furnace Rent To Own
There are affordable furnace rental contracts available. While the homeowner pays a monthly charge to utilize the equipment in their home, the rental business retains ownership of the furnace.
In other words, the monthly rental charge does not contribute to the furnace’s amortization. At the end of the contract, the homeowner usually has three options:
- Renegotiate the leasing agreement and reset the contract’s clock
- Pay a separate buyout price to acquire the furnace
- Pay a removal charge to have the furnace removed from the residence
People who consider air conditioner rent to own or heater rent to own often do so to save money.
What To Consider When Shopping for HVAC Financing?
When shopping for HVAC financing, it’s best to check out multiple alternatives. Consider what we have to offer and how it stacks up against the competition. Consider the:
- Interest rate
- Repayment period
- Monthly payment amount
- Any related costs
Whichever route you choose, we can install your new HVAC system!
What Is the Cost of Furnace Financing?
The precise cost of your new HVAC unit may depend on several factors. Financing enables you to purchase the device with little or no upfront expenses.
Bear in mind that funding is not free. Interest is how lenders earn money. The higher your credit score is, the cheaper your interest rate will be. Factors that may influence your interest rate include the loan’s size and payback duration.
Furnace and Air Conditioning Options for Homeowners
You’ll want to examine two primary types of HVAC systems. Both are pretty impressive, but it depends on your needs. Here are the two types:
Conventional
With a conventional furnace or air conditioning system, you’ll have an outside unit connected to your house through ductwork. Using the furnace’s blower, the warm or cold air is pushed through the vents in your house. You will use a central thermostat to regulate the temperature.
Ductless
Ductless units are ideal for older houses that lack ductwork. Adding ducts to an older house may be a big undertaking. Rather than that, ductless units may be installed in separate rooms to offer zone-controlled cooling.
Each ductless unit is linked to a separate outside unit through a small hole in the wall. You may regulate the units individually to maintain the desired temperature in each section of your house.
Do You Need To Replace Your Heating and Cooling Unit?
Some HVAC providers will immediately suggest replacement. This is because it’s a large project that will cost a lot of money. You may only need a simple repair, which is often more affordable.
Here are indications that you need to replace your heating and cooling unit:
- The cost to maintain the unit is very costly
- The air quality in your house has degraded significantly
- The unit is outdated and cannot be repaired or cleaned
Replacing your unit makes sense only if it is the least costly way to ensure proper operation and air quality in your house.
Where to get HVAC Financing?
If you decide on furnace financing, we will guide you through the procedure. We want you to be informed. Otherwise, you risk spending too much money on a system that is not suitable for you.
Are you prepared to learn more? Contact us today for heating and air conditioning services.
by FurnaceFinancing.ca Staff | Sep 29, 2021 | Guides |
According to studies, 60% of Canadian households had any type of air conditioner. This number grew since two years prior to the study, meaning more and more households are installing heating and air conditioning systems.
A quality heating and air conditioning system can keep your home comfortable while also being energy efficient and saving you money. If you’re thinking about installing a new one, let’s take a look at everything you need to know about these systems.
How Do HVAC Systems Work?
Heating and air conditioning systems are commonly referred to as HVAC systems, meaning they take care of heating, ventilation, and air conditioning. It is also possible to have ductless heat pumps or mini-split systems.
Your system will include a heating element, which is usually a furnace or boiler. This pairs with a pipe system if you have a fluid-based system or ductwork if you have forced air. Either of these systems helps distribute the heat.
Some systems also include a separate air-cleaning element here. Finally, the air conditioner will include an outside unit that includes a compressor, as well as an evaporator coil attached to the furnace.
Your air return is the starting point of the ventilation cycle in your home. It sucks in air and brings it through a filter. Then, the air passes into the main system. This air then moves on to the heater or central air conditioner where it is heated or cooled as needed.
The air, which is now at the temperature you want it, is sent back into your home using the ductwork. Blowers, which is essentially a fan that is part of your furnace, helps force the air to move through the ducts.
How to Choose a Heating and Air Conditioning System
If you already have a heating and air conditioning system, odds are that sooner or later you will need to replace it with a new one. Unfortunately, they do break down over time. This causes them to be inefficient or ineffective, possibly raising your energy bills, requiring frequent repairs and maintenance, and making your home less comfortable.
When choosing a new heating or air conditioning system, it’s important to take a careful look at what your system needs to do. You don’t want to buy an oversized unit, but you should make sure it can meet the requirements for your home.
It’s important to choose one that will adequately heat or cool your home. Larger homes require larger units. Some very large homes may even require multiple units. However, smaller homes may only need a relatively small unit.
How Much Does an HVAC System Cost?
Prices will vary depending on where you purchase your air conditioner or furnace from as well as your location. In addition, certain factors like the make and model of the system will also affect the cost.
You’ll also need to factor in the cost of installation. This can vary drastically depending on your location and your particular home, including how old your current unit is. Modern building codes may require substantial upgrades to venting, piping, and electrical wiring.
If you’ve never had an HVAC system in your home or have an outdated system, you may need to factor in the cost of installing or updating ductwork. Having a properly working and installed duct system will ensure your new HVAC system will work efficiently, lowering your overall costs.
If you can’t purchase a new heating or air conditioning system outright, there are other options. Furnace rental and air conditioner rental can help you get the system you need now without paying for a whole new system right away.
Another option is to finance your furnace or air conditioner. You can get great rates with flexible options, while still being able to install the heating and cooling system you need.
Where to Get Heating and Air Conditioning Systems
You can get a heating and air conditioning system from a number of places. Many heating and cooling companies that are known for service and installation also sell some standard HVAC systems if you need one.
However, there are also other options. Some companies offer furnace rent to own or air conditioner rent to own.
You should consider a company that specializes in selling and financing heating and air conditioning systems. Going this route will give you a wider variety of units to choose from, meaning you can get one that will work best for your situation.
In addition, you can get more flexible payment options, making it easier to get the system you need affordably. You could finance your system and only have to deal with low monthly payments. There are options for zero-interest financing and even bad credit financing.
Plus you’ll still have access to licensed and certified installers that are experts in installing heating and cooling systems the right way.
How to Maintain Your Heating and Air Conditioning System
Keeping up with the maintenance on your heating and air conditioning system is key to keeping it running efficiently. Scheduling your heating and air conditioning services regularly will help you extend your system’s life and save money on your energy bills.
In general, you should have your systems inspected and serviced by a professional before the season in which they’ll be used. For your heating system, this means you should schedule an appointment in the late summer or early fall before you need the heat.
On the other hand, your air conditioner should be serviced in late winter or early spring. This will ensure it’s ready to go for cooling season. You should also be sure to change your filters regularly even between servicings.
If you have an outdoor unit, it is important to maintain the area around it. Make sure there isn’t any debris or vegetation that is too close to the unit. It can get sucked into the fan and cause serious issues.
Keep Your Home Comfortable
Heating and air conditioning systems may seem complicated for the average homeowner when you first learn about them. However, with a little bit of knowledge, you can choose a system that works for you and keep it well maintained.
Get a free quote from Furnace Financing so you can upgrade your heating and cooling system and start enjoying a more comfortable home.
