How to Finance Your Next Home Renovation

Your Master bathroom stuck in the 80s?  The dusty rose colour scheme makes you cringe and those rusting fixtures and dirty grout lines won’t ever be clean again, despite how much elbow grease and cleaner you put into it.  But as eager as you are to build a beautiful new master bathroom, your current bank account says “it’s not happening!”  If you’re thinking about borrowing money to finance your next home reno, consider the duration and size of the project to determine the best financing method.

Here are just a few of the best examples of how to finance your next home renovation project:

  1. For smaller projects, like painting and/or landscaping, using as existing CREDIT CARD may be the best and easiest option and you can begin the project as early as tomorrow.  This method should only be used IF you can pay off the bill in the near future as credit card interest rates are high – anywhere from 18-20%.
  2. For slightly larger, long-term borrowing, you may need to seek out a PERSONAL LOAN.  You’ll make regular payments on the amount you borrowed, plus interest, for a set period.  Interest rates for personal loans are typically lower than half that of credit cards, but once your loan is paid off you’l have to reapply for a new loan if your project runs over budget and more funds are needed.
  3. Ongoing renovations that require access to funds over time as opposed to a one-time lump sum may be best suited to a HOME EQUITY LINE OF CREDIT(HELOC).  You won’t have to start paying interest charges until you decide to use funds, which could help save you money.  Additionally, as you pay off your balance, you’ll be able to access remaining funds in your line of credit without needing to reapply.
  4. Depending on the nature of your renovation, your project may qualify for a small low-interest MUNICIPAL LOAN if the project helps to increase the energy efficiency of your home.  Municipal loans for home energy renovations are typically limited to 5% of the current value assessment of your home.  Check with your local municipality to find out such loans are available.

Always speak to a trusted financial advisor before seeking out loans and other forms of credit.  The advice provided in this article is for general informational purposes only and does not constitute personal financial advice.

If you are considering starting a renovation, and want to know the value of your property, go to

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