Financing Your Home Renovation

Why renovate your home?

If you’re looking to upgrade or expand your living space, you may be debating whether to move or renovate. By renovating, you can create the home you’ve always dreamed of, which is typically easier and more cost-effective than finding something new. Plus, you avoid the hassle of moving and the emotional upheaval that comes with it. RBC Royal Bank can help you finance your home renovation needs.

Options for financing your home renovation

The type of financing you'll want to consider for your project has a lot to do with the type and cost of the renovations you are undertaking. Here are the options that may be available to you at RBC Royal Bank, based on the type of project you are planning:

Large Projects

Large Projects Table
Recommended Financing Option	Benefits	Considerations
RBC Homeline Plan Manage your mortgage and home improvement line of credit under one plan.	Low interest rates compared to most other types of credit Available credit grows with your equity¹ Flexibility in payments – make interest only payments if you wish² Pay down the balance as fast as you want through the Line of Credit portion. Or pay it down through your regular mortgage payments You can reuse your available credit (up to your limit) once you pay down your balance	Large amounts of available credit can make it easier to spend higher amounts, which can lead to carrying debt for a long time Variable interest rates can change, which could increase your monthly interest payments
Refinancing Refinance your existing mortgage and have up to 30 years to repay.	Potential to get a lower mortgage rate and save money on interest Provides access to equity in your home to free up cash while taking advantage of potentially lower interest costs	Fees and charges associated with breaking your mortgage may be higher than the interest savings A larger mortgage balance might take longer to pay off
Secured Royal Credit Line A solution best suited to renovations that will be done over time and/or when you don't need all the money at once.	Lower interest rate compared to most credit cards Flexibility in payments – you can make interest only payments if you wish² You can reuse your available credit (up to your limit) once you pay down your balance	Requires discipline to pay it off Variable interest rates can change which could increase your monthly interest payments Your lender can reduce your credit limit at any time.

Medium Projects

Medium Projects Table
Recommended Financing Option	Benefits	Considerations
RBC Homeline Plan Manage your mortgage and home improvement line of credit under one plan.	Low interest rates compared to most other types of credit Available credit grows with your equity¹ Flexibility in payments – make interest only payments if you wish² Pay down the balance as fast as you want through the Line of Credit portion. Or pay it down through your regular mortgage payments You can reuse your available credit (up to your limit) once you pay down your balance	Large amounts of available credit can make it easier to spend higher amounts, which can lead to carrying debt for a long time Variable interest rates can change, which could increase your monthly interest payments
Royal Credit Line A solution best suited to renovations that will be done over time and/or when you don't need all the money at once.	Lower interest rate compared to most credit cards. Flexibility in payments – you can make interest only payments if you wish² You can reuse your available credit (up to your limit) once you pay down your balance	Requires discipline to pay it off Variable interest rates can change which could increase your monthly interest payments Your lender can reduce your credit limit at any time
Personal Loan A personal loan could be ideal if you need the funds all at once and want a structured repayment plan.	Flexibility to have a variable or fixed rate loan Borrow only what you need A set payment schedule means you know when your loan will be paid in full No collateral required – you are not borrowing against the equity in your home No early prepayment penalty – the loan can be paid in full at any time without penalty.	May have higher interest rates compared to secured loan options

Small Projects

Small Projects Table
Recommended Financing Option	Benefits	Considerations
RBC Credit Card Pay for your smaller renovations with any of our credit cards, which include cash back, rewards, and no annual fee options.	With one of our Rewards cards, you could earn Avion points on your renovation spending, which can be redeemed for merchandise, gift cards, and more depending on the number of Avion points you have.³ You could earn cash back on purchases made using one of our cash back credit cards. Some of our credit cards also include insurance benefits such as extended warranty.⁴	Some credit cards may have annual fees. Interest rates may be higher than other forms of financing if you carry a balance.
Cash Put money aside for your next renovation in an RBC bank account.	A chequing account serves as a quick and easy way to access your money Savings accounts allow you to set aside renovation funds while providing you with easy access, 24/7	Your cash might be worth preserving and investing for future growth, such as in a retirement or investment account

Additional resources - Government programs and incentives

Many provincial and federal government programs offer rebates, subsidies, or tax credits for home renovation projects — particularly those focused on energy efficiency or accessibility improvements.

To find programs in your area, check with your municipal office or visit the Government of Canada website or the Canada Housing Mortgage Corporation (CHMC) website.

It's worth exploring these programs before finalizing your renovation budget — they could meaningfully reduce the amount you need to borrow.

Mortgage Payment Calculator

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Home Value Estimator

Find out the estimated value of your home by answering a few questions. Plus, see how much a renovation project could increase the value of your home.

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Connect with an RBC Financial Advisor today

Book an appointment with a RBC Financial Advisor to discuss your home renovation financing needs.

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Legal Disclaimer¹

You can borrow up to 80% of the value of your home and as you pay down your mortgage, the available credit on your Royal Credit Line increases.

Legal Disclaimer²

The minimum payment is the accrued interest, service fees and any other charges that apply for that period, including your LoanProtector insurance premium and taxes, if applicable.

Legal Disclaimer³

Avion points are earned on net purchases only; they are not earned on cash advances, balance transfers, cash-like transactions and certain bill payments, interest charges or fees, and credits for returns and adjustments will reduce or cancel the points earned by the amounts originally charged. For more details, please refer to the Avion Rewards Terms and Conditions at: www.avionrewards.com/terms-and-conditions.html

Legal Disclaimer⁴

Coverage underwritten by Aviva General Insurance Company in the Province of Quebec and by RBC Insurance Company of Canada in the rest of Canada. All insurance is subject to limitations and exclusions. Please refer to the insurance certificates included in your printed Welcome Kit for complete details or online in Credit Card Documentation.