Questions to Ask Before You Finance HVAC Work

Financing turns a number you cannot pay this month into one you can. It also stacks a second decision on top of the equipment decision, and the two get tangled easily. These are the questions worth asking before signing either of them.

First, Separate the Two

A Rebate and a Loan Are Not the Same Thing

A rebate reduces what the project costs. Financing changes when you pay for it. Different organisations run them and they have different eligibility rules. Qualifying for one tells you nothing about the other. Treat them as two applications, because that is what they are.

How Rebates and Financing Are Handled

Ask the Lender

Seven Questions Before You Apply

The answers belong to whoever is lending the money, and they should arrive in writing. A lender who will not put them in writing has answered a different question.

• What is the annual rate, and is it fixed for the whole term?
• How long is the term, and what does the payment look like in the final year as well as the first?
• Is there a promotional period, and what does the rate become when it ends?
• Is there a penalty for paying it off early?
• Is the amount financed the full project cost, or the cost after rebates?
• Does applying affect your credit, and at which stage does that happen?
• Who is actually lending: the contractor, or a finance company behind them?

Ask Whoever Is Quoting

Two More for the Contractor

Both of these have answers. A quote that turns vague at this point is telling you something useful.

• Does the price of the job change depending on how it is paid for?
• If the rebate does not come through, what happens to the amount that was financed?