Ireland’s best home improvement loans
A home improvement loan can help add value to your home by paying for renovations, repairs or an extension. Use our loan calculator to compare loan rates for the amount and term you need.
LatestNew Home Energy Upgrade Loan scheme now available
The government-backed loan scheme, which allows homeowners to borrow up to €75,000 at significantly lower interest rates, is now available to homeowners.
Loans are available from €5,000 up to a maximum of €75,000 per property for between one and ten years. The loan must be used for the purposes of upgrading energy efficiency and needs to result in at least a 20% improvement in your home’s energy rating.
PTSB is the first bank to offer loans to homeowners under the Scheme, with rates starting at 3.55%. AIB, Bank of Ireland, Avant Money, and some credit unions are expected to follow.
What is a home improvement loan for?
A home improvement loan is a type of unsecured, personal loan. This type of loan can help pay for work you need to do on your house, which could increase the value of your property.
The type of home improvements you can make with a loan includes:
How much can you borrow?
The maximum loan amount in Ireland is €75,000, but you can borrow anything between €1,000 and €75,000 over a period of one to 10 years. Not every lender offers these loan amounts and terms, so shop around to find a lender that can fulfil your needs.
Although you can apply online for loans up to €30,000, a larger loan may take longer to approve, and you may need to complete the full application process over the phone or face-to-face with your lender.
How much will it cost?
This depends on several factors, so it’s worth comparing different lenders and checking loan interest rates to ensure you get the best deal.
These factors affect how much credit costs:
- The APR (Annual Percentage Rate): The higher the rate, the more interest you’ll pay
- The amount you borrow: The larger the sum borrowed, the greater the cost overall
- The loan term: The longer you borrow, the more interest you’ll pay in total
- The type of loan: Green loans or a secured loan may be cheaper than a personal loan
Your credit history will also affect the interest rate you’re offered.
A good credit rating will boost your chance of approval and a lower interest rate; on the other hand, a poor credit rating will make borrowing more expensive. Here’s how to check your credit record.
Can I overpay on my home improvement loan?
Yes, you can often repay the loan early or overpay without penalty, but check for any hidden charges. Clearing the loan early in one go or through overpayments could:
- Reduce the amount of interest you’ll pay
- Reduce the length of the term
- Reduce the overall cost of the loan
If you think you’ll be able to pay your loan off early, pick a lender that won’t charge any penalties for this.
Are home improvement loans tax deductible?
Not any more. You used to be able to claim tax relief on the interest paid on a home improvement loan through Revenue.ie but the loan must have started before 31 December 2012.
There was also a Home Renovation Incentive run by Revenue.ie that covered work carried out or paid for up to 31 December 2018, or between 1 January 2019 and 31 March 2019 if planning permission was in place by then.
It’s worth keeping an eye out for possible future schemes that may be introduced though, that could reduce the amount of tax you owe.
How to find the best home improvement loan
Finding a cheaper loan could save you hundreds of euro in interest. To get started, you’ll need to:
- Identify the changes you want to make to your home
- Get quotes for your project
- Work out the total cost and your monthly budget
- Pick a loan term that keeps repayments within budget
Use our comparison above to check the rates, monthly loan repayments and total costs for each loan, to find the best deal.
You can use the home improvement loan calculator filters to change the loan amount and repayment term to suit your needs.
If you want to improve your home’s energy efficiency, look for loans with the green tag.
Can you remortgage your home for renovations?
Yes, you can apply for a mortgage top-up loan to finance home improvements.
- A top-up mortgage allows you to borrow money against the current value of your home for things like home renovations. It is separate to your current mortgage, and can have a different interest rate and repayment period.
- A mortgage top-up could offer a lower interest rate than a home improvement loan. But it might also have a longer repayment term, making the cost of the loan - known as the cost of credit - higher.
Always compare the total cost of any loan as well as the monthly repayments and if you’re unsure talk to a mortgage advisor or broker.
What is a green home improvement loan?
If you want to make changes to your home that are environmentally friendly, a green personal loan could save you money, but there are terms attached.
You will usually have to:
- use at least half of the money towards approved energy efficiency improvements
- provide proof when you apply e.g. a quote or invoice.
It may take longer to be approved for a green loan than a regular home improvement loan, and funds may not get released as quickly.
Some green loans are linked to the home energy grants available on the SEAI website, for example the An Post Money Green Loan.
Here are the sorts of things you can use the loan for:
Home Energy Upgrade Loan Scheme
This government-backed loan scheme allows homeowners to borrow up to €75,000 at significantly lower interest rates. Loans are available from €5,000 up to a maximum of €75,000 per property for between one and ten years.
The loan must be used for the purposes of upgrading energy efficiency, this means:
- At least 75% of the loan must be used on eligible items, including insulation and/or renewable energy solutions (e.g., solar panels), with up to 25% allowed for secondary expenses
- The upgrades need to result in at least a 20% improvement in your home’s energy efficiency. This will be assessed by your SEAI project broker
PTSB is the first bank to offer loans to homeowners under the Scheme, with rates starting at 3.55%. AIB, Bank of Ireland, Avant Money and seven credit unions from the Irish League of Credit Unions are all expected to follow.
Can you get a home improvement grant?
You can apply for a home energy grant on the SEAI website and some green home improvement loans are linked to these grants.
The value of the grant depends on the type of upgrade needed and the size of your home. For example, you could get as much as €6,000 for external wall insulation on a detached property.
Getting a grant means you don’t have to cover the full cost of improvements to your home that will increase its energy efficiency.
Green home improvement loans usually work out cheaper too if you need help paying for the balance of the work.
What is a one-stop-shop service?
The SEAI’s one-stop-service is a complete home energy upgrade solution for homeowners.
The service includes a home assessment, grant application, contractor works, project management, and a green home improvement loan if needed, to cover any upfront costs.
What is the new energy upgrade loan scheme?
From 2024, homeowners will be able to apply for low-cost, government-backed loans to improve the energy efficiency of their homes.
They can borrow between €5,000-€75,000 on an unsecured basis for a term of up to 10 years. Interest rates are promised to be significantly lower than those currently available on the market.
Homeowners will be able to apply for the loans in early 2024 through participating lenders.
How to apply for a home improvement loan
You can use our comparison to select a loan and go through to the provider’s site. You’ll then confirm the value of the loan and term you need and complete and submit their online application.
Depending on the amount you wish to borrow, they may be able to approve your loan within as little as three hours.
If you want to borrow a large amount, they may need to call you back to discuss your needs further.
Learn about how loans work in Ireland in our Complete Guide to Loans.
Home improvement loan FAQs
What's the Typical APR (Annual Percentage Rate)?
The Typical APR (Annual Percentage Rate) shown is the interest rate that most people will get, but you’ll need to apply and go through checks to find out what rate the lender will give you.
For example, a poor credit rating or lower income may result in you paying more than the rate advertised.
How do I get a credit union home improvement loan?
Credit union home improvement loans can often beat the interest rates offered by other providers.
To join, you’ll need to share a common bond with a credit union, e.g., your locality, workplace, or club. Most of the time, you can join and apply for a loan the same day.
What’s the difference between unsecured and secured loans?
An unsecured loan (or personal loan) doesn’t need to be backed up by any collateral like a house or car.
It’s usually only offered to people who can prove they have a good credit history and are a low risk borrower. Unsecured loans are also usually for lower amounts and shorter terms.
A secured loan works differently because it’s linked to an asset you own, usually a house.
This acts as financial security to the lender who is entitled to take possession of your property if you don’t repay the loan on time.
The main advantages of secured loans are that you can borrow more money over a longer term, at a lower interest rate.
None of the loans we show in our comparisons are secured.