Financing2022-11-04T13:50:46-04:00

Financing your renovation
Your dream home starts here

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.

Explore your lending options
bright and modern kitchen with hardwood floors and an island.

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.

the interior home renovation process
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Increase the value of your home

Renovating your home can make your home more attractive, comfortable and can often increase the value of your home.

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Improve your home’s energy effeciency

While this type of renovation isn’t always the most exciting, replacing your roof, insulation or furnace may help your home run more efficiently and ultimately save you money.

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Adapt your home to your needs or growing family

Homeowners will often decide to renovate to avoid having to move to accommodate their needs as life changes. Whether it is updating the kitchen to make it larger or building an addition for another bedroom, renovating your home can be a strategic way to help you stay in your home longer.

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

Loan types
Financing your renovation can help you build your dream home sooner.

Whether you’re planning a major home renovation or a small project, there are lending options to help.

Planning a Small-Medium Home Renovation Project?

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

Get your personal rate
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Line of Credit

This is a low-cost way to finance your renovation and is suitable for projects that take a longer time; payment is required in instalments.

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Personal Loan

Suitable if renovation payments are required up front in a lump sum. Loan is paid off with fixed monthly payments over a specific period, and terms range from 1-5 years with fixed or variable rates.

Planning a Large Home Renovation Project?

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

Get your personal rate
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Secured Line of Credit

Use the equity in your home or your investment portfolio as collateral to secure a higher credit limit at a lower interest rate.

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RBC Homeline Plan®

Manage a mortgage and line of credit under one plan and use the equity in your home to finance a larger renovation project.

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Mortgage Refinancing

Refinance your existing mortgage to access the funds for a renovation up front in one lump sum, up to 80% of the current value of your home.

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Mortgage Add-On

Add on to your existing RBC mortgage to access additional funds for your renovation, with potential changes to existing interest rate and monthly payments.

Not sure how much your renovation will cost?

Thousands of homeowners start their renovation journey with
Smart Reno and find contractors using our trusted network.

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

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RBC Home Value Estimator

Find out how much home equity you have to finance your renovation using the RBC Home Value Estimator.

Find out the value of your home
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Renovation Cost Estimator

Not sure what your renovation should cost you? Use the Renovation Cost Estimator to find out.

Get an on-the-spot estimate

Our trusted lending partners

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Smart Reno is powered by The Royal Bank of Canada. RBC offers financing options to meet all your home improvement needs. Whether it is a major renovation or small project, they can recommend the product right for you.

symple loans

Symple Loans is verified under the Canadian Lenders Association and are here to simplify your lending experience by offering a fully digital application and instant response.

RBC Logo

Smart Reno is powered by The Royal Bank of Canada. RBC offers financing options to meet all your home improvement needs. Whether it is a major renovation or small project, they can recommend the product right for you.

symple loans

Symple Loans is verified under the Canadian Lenders Association and are here to simplify your lending experience by offering a fully digital application and instant response.

Ready to finance
your renovation?

Find the financing option that fits your needs with our trusted lending partners – for small to large projects and everything in between.

Explore your lending options

Happy homeowners sitting on the floor of their renovated kitchen.
happy-homeowners

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. 

I started on the Smart Reno website, why am I being redirected to the Symple Loans website?2022-08-02T09:32:06-04:00

At Smart Reno, we understand that securing the funds to pay for a renovation can be one of the biggest sources of stress for homeowners. We work with Symple Loans, a personal lending company, to help clients evaluate their borrowing options quickly. Symple Loans provides an online borrowing experience that enables clients to receive a fully personalized quote and complete an application within minutes. If you request financing for your renovation project through the Smart Reno website, you will be redirected to the Symple Loans portal to proceed with your rate request, and if you decide to pursue one after that, your credit application with Symple Loans. All Symple Loans’ loans are subject to credit and underwriting approval by Symple Loans. Neither Smart Reno, RBC Ventures Inc. nor Royal Bank of Canada are involved in Symple Loan’s credit approval and/or loan disbursement process.

If my credit application is successful, who will fund my loan?2022-08-02T09:33:15-04:00

By submitting a credit application on Symple Loans’ website, you agree to do business with Symple Loans. Successful applications will receive a loan from Symple Loans. Symple Loans’ loans range from $5,000 – $50,000 with terms from 1 – 7 years and no early payment fees or charges. If you are a client of Royal Bank of Canada, other financing options may be available to you. To help you view what existing offers or borrowing options may currently be available to you, you will be redirected to the RBC Online Banking login page. If there are no offers available at this time, you will be able to book an appointment with an RBC advisor to understand what lending options are available to you. If you are interested in exploring loans or line of credit options with RBC, contact RBC at 1-800-769-2511 or Teletypewriter (TTY) Services for those who are hearing-impaired: 1-800-661-1275 or Book an Appointment online.

Who is Symple Loans and how can I get in touch with them?2022-08-02T09:34:01-04:00

Symple Loans is a personal lending company based out of Toronto, Ontario that provides unsecured personal loans to eligible Canadians. They provide loans through a fully online borrowing experience. Symple Loans has been accredited by the Canadian Lenders Association and the Better Business Bureau. You may contact Symple Loans via phone or email. Phone: 1-888-479-2292 Email: .Smart Reno collaborates with Symple Loans to help clients evaluate their borrowing options quickly.  Smart Reno will receive a referral fee for each successful loan opened with Symple Loans. This will not affect the interest fees payable by you. Please note that Symple Loans is currently available across Canada, (excluding(Saskatchewan, Nova Scotia and Quebec) Symple Loans is not owned, operated by or affiliated with Smart Reno, RBC Ventures Inc. or Royal Bank of Canada in any way.

What are the interest rates and fees offered by Symple Loans?2022-08-02T09:34:30-04:00

The
Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you have to pay to get the loan. The APR that you get will depend on Symple Loan’s assessment of your credit profile, financial position and ability to service additional loan commitments.  At Symple Loans, the application assessment and underwriting process allows Symple Loans to better understand the specific circumstances of each applicant and offer customized interest rates and loan terms on approved loans. Interest rates start at 6.99% up to 22.99%. These are variable rates and future interest rate and repayment periods may be impacted by a change in the Canadian prime rate. Origination fees may be applicable on your Symple Loans loan. These fees are a one-time charge of 0-5% and are added to your loan principal which can be paid off over your loan term.

Late payment fees of $45.00 will apply for missed or late scheduled repayments.Symple Loans’ APRs range from 6.99% to 32.00%, the maximum APR that you may obtain as a Smart Reno client through this referral process is capped at 19.99%. Symple Loans will not provide loans to Smart Reno clients applying through this process if the effective APR is higher than 19.99%. Maximum APRs are inclusive of the maximum interest rate and loan establishment fees.

Will my credit be impacted if I request a credit rate offer with Symple Loans? How about if I submit an application?2022-08-02T09:35:11-04:00

When you request a consumer credit rate offer “quick quote” or apply for a loan with Symple Loans, your credit will not be impacted. Your credit may only be impacted if and when your loan application is funded.

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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