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Home renovation loans

Renovating your home can feel overwhelming. It can be hard to understand the true cost of your renovation, budget and pay for it without dipping into rainy day funds.

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bright and modern kitchen with hardwood floors and an island.

Types of home renovation loans
Financing your renovation can help you build your dream home sooner.

Smart Reno is powered by the Royal Bank of Canada. RBC offers a range of financing options to meet all of your home improvement goals.

Planning a Small-Medium Home Renovation Project?

Typically these projects include bathrooms, kitchens, outdoor renovations, or new flooring.

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Planning a Large Home Renovation Project?

This could include renovating multiple rooms, building an addition, or digging out your basement.

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Reno Benefits
Why renovate your home?

From increasing your home value to eco friendly and money saving upgrades, there are many reasons to renovate your home.

Use RBC’s home value estimator to better understand how much a renovation to your home could increase it’s value.

Not sure how much your renovation will cost?

Using real renovation cost data combined with industry experts, we are able to help homeowners better understand their true renovation costs.


Make your home improvement dreams a reality

Talk to a RBC credit specialist to find the right financing option for you

Call 1-877 350-7366 today!

Frequently Asked Questions About Home Renovation Loan

What are the benefits of home renovation loans?2022-10-12T15:28:54-04:00

There are several! The most obvious ones include: 

  • You can finish your home renovation faster without using your own money
  • There are different options so you can customize a loan for your home renovation needs
  • Approvals are often quick so you don’t have to wait to start your renovation
  • Some home renovation loans such as a HELOC will let you either pay the loan off on a monthly basis or all at once 

In short, a home renovation loan affords you the opportunity to turn your property into your dream home. 


What type of loan is best for home improvements?2022-10-12T15:27:45-04:00

There are several home renovation loans depending on the size of the renovation. If it’s a small project, it can be put on a credit card. While credit cards are easy to obtain, they usually come with high interest rates.

For a lower interest rate option, there is a HELOC or Home Equity Line of Credit Loan where you leverage the equity in your property to get a loan. This type of loan can be a good option if you’ve been paying your mortgage for several years, as the entire credit amount will be made available to you up-front, and you will only pay interest on the amount you withdraw, giving you greater flexibility in your payment schedule. You can re-borrow and pay down as often as you like within approved credit limits. 

Another option is a Draw Mortgage which advances approved funds to you based on completed agreed-upon renovation milestones. This means that you won’t get the entire amount of the home renovation loan upfront. Instead, the money is released based on meeting certain goals. 

Other loan options for home improvements include a second mortgage or a home equity loan which, similar to a HELOC, gives you a lump sum but usually come with very set payment terms. It is important to understand that a second mortgage must be paid off in addition to your current mortgage — if you cannot meet your financial obligations, you may risk losing your home.

What is a home renovation loan?2022-10-12T15:23:34-04:00

This type of loan is used to cover the cost of renovating a property and is often part of a mortgage loan. Homeowners tap the equity in their property to borrow the amount needed for the renovations. 

When you apply for a home renovation loan, you often have to estimate the cost. That’s why it’s important to get several quotes from contractors before you apply for a loan.

A home renovation loan has a structured payment plan and you can get access to the funds immediately. It has a flexible timeline, running from as short as six months to several years. That means you can customize the length of your loan so you have lower monthly payments. 

How do I pay for my renovation?2021-05-06T17:48:45-04:00

Each contractor is slightly different, but payment options might include cash, check, e-transfer, or credit cards.

Do you offer financing options?2021-05-06T17:32:40-04:00

Smart Reno is powered by RBC Ventures, a subsidiary of The Royal Bank of Canada. RBC offers multiple financing options to help make your renovation dreams a reality. Visit our Financing page to learn more.

I don’t currently bank with RBC. Can I still get financing for my renovation from them?2021-04-29T16:03:06-04:00

Yes, RBC offers many different financing options whether you currently bank with RBC or not. You can talk to an advisor by calling 1800-769-2511 to learn about the best options for you and your project.

How do I know how much my renovation will cost?2021-04-29T16:01:05-04:00

If you’re not sure how much your reno will cost, you can get an estimate using our Renovation Cost Estimator

Do I have to use a Smart Reno contractor to access RBC financing?2021-05-07T13:57:18-04:00

Absolutely not. If you have already found a contractor and are now looking at your financing options, you can speak to one of our RBC financial advisors today by calling 1-800-769-2511. They can help walk you through all the options available to you.

Do I have to choose RBC financing if I do my renovation with a contractor I found using Smart Reno?2021-04-29T15:59:10-04:00

No. While our goal is to help make your renovation journey as easy as possible, including helping you finance your project, you are not required to finance your project with RBC to be able to use a Smart Reno contractor.

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Jumpstart your renovation with expert advice

RBC's team of advisors are here to help you select the right lending solution for your renovation.