Compare Ireland’s best home improvement loans
Planning a home upgrade? Use our loan calculator to compare the cheapest home improvement loan rates in Ireland. We help you find the best deal, including access to the low-cost Home Energy Upgrade Loan Scheme (HEULS).
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:
What’s the maximum you can borrow?
In Ireland, home improvement loans range from €1,000 up to a maximum of €75,000, with repayment periods lasting 1 to 10 years.
Keep in mind that not every lender offers the maximum amount or the full 10-year term, so shop around to find a loan that meets your needs.
While online applications are available for loans up to €30,000, approval for a larger loan may take more time and require you to complete the application process by phone or face-to-face.
How much does a loan cost?
A larger loan sum will naturally result in a greater overall interest cost, but it also depends on several other things, so compare different lenders and check loan interest rates to ensure you get the best deal.
These factors affect your loan costs:
- The APR (Annual Percentage Rate): This is the main driver of cost - a higher rate means you will pay more interest over the life of the loan
- The loan term: The longer the repayment period (term), the more total interest you will accrue and pay back
- The loan type: Specialised loans, such as green loans or home upgrade loans, often have lower interest rates than a standard unsecured personal loan
Your credit history and its impact
Your personal credit history is a major factor, as it affects the interest rate you are offered, which, in turn, influences the total cost and your monthly repayments.
- Good credit history: This will significantly boost your chance of approval and help you secure a lower interest rate.
- Poor credit history: This makes borrowing more expensive, as lenders see you as a higher risk and charge a higher interest rate to compensate
If you’d like to know more about your credit history and how to boost your chances of loan approval, read our guide How to check your credit record.
What is a green home improvement loan?
If you want to make environmentally friendly changes to your home, 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.
What can you use a green loan for?
Some green loans are linked to the home energy grants available on the SEAI website.
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.
Home Energy Upgrade Loan Scheme (HEULS)
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
Learn more about the Home Energy Upgrade Loan Scheme on the sbci.gov.ie website.
Which banks offer the Home Energy Upgrade Loan?
Four banks currently lend to homeowners under the HEULS. Some credit unions from the Irish League of Credit Unions are expected to start offering loans soon.
What grants are available for home improvements?
To reduce your costs on energy efficiency improvements, look into home improvement grants available through the SEAI. The SEAI also offers homeowners a one-stop-shop solution, providing a full wrap-around service for your home upgrade project.
The Home Energy Upgrade Scheme (HEULS) and some green home improvement loans are linked to these grants.
You can apply for a home energy grant on the SEAI website. 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.
If further funding is required, green loan rates are typically lower and can be used to cover the remaining project costs.
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.
How does a SEAI grant link with the HEULS?
The SEAI grant and the Home Energy Upgrade Loan Scheme (HEULS) are designed to work in tandem to make home energy upgrades more affordable. The SEAI grant is your ticket to the HEULS loan, and you can’t get one without the other.
The HEULS doesn’t cover the whole bill; it’s designed to finance the rest and fills the gap after you subtract your SEAI grant money.
How they work together:
How to find the best home improvement loan
To find the best loan, use our comparison tool to check the rates, monthly loan repayments and total costs for each loan.
You can use the home improvement loan calculator filters to change the loan type, loan amount and repayment terms. If you want to improve your home’s energy efficiency and get a lower-rate loan, filter your results to include home energy upgrade scheme loans.
Before you apply:
- Assess your home improvement needs and budget
- Calculate the total cost of improvements or upgrades
- View your credit history and and check for errors
- Check eligibility for SEAI grants and loan schemes
- Shop around and compare lenders and rates
- Check the repayment terms and fine print
Your home improvement loan application
Once you’ve chosen which lender you want to borrow from, you can apply online, by phone or in-branch.
Depending on the amount you wish to borrow, the lender may approve your loan within as little as three hours. If you wish to borrow a large amount, they may need to contact you to discuss your needs further.
Here’s what you need to do:
- Submit your application and upload all required documents to speed up approval
- Once approved, you’ll receive a loan offer outlining the amount, term, rate, and repayment schedule
- Review the repayment terms and fine print carefully before accepting
- Set up a Direct Debit to ensure you don’t miss or delay any repayments
- After signing your loan agreement, funds are typically transferred to your account
- Keep builder’s receipts and documentation in case you want to claim SEAI grants or tax relief later
What if you’re applying for a Home Energy Upgrade Loan?
The first step is to confirm that your home and improvement plans fit the lender’s eligibility criteria.
If you’re applying for a loan via the HUELS, contact an SEAI-registered One Stop Shop or an SEAI Community Project Coordinator to plan your home energy upgrade and find a contractor.
Visit our in-depth guide Retrofitting in Ireland: Costs, grants and installers to learn more about the HEULS key features and eligibility criteria.
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.
Learn about how loans work in Ireland in our Complete Guide to Loans.