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.
What is a home improvement loan?
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:
Types of home improvement loan
There are several ways to borrow money to fund home improvements or energy upgrades.
| Loan type | Typical interest rates | What they’re best for | |
|---|---|---|---|
| Standard Home Improvement Loan | 6.9% to 8.95% | Standard renovations with no energy-efficiency requirements. | |
| Standard Green Loan | 6.4% to 6.5% | Smaller modular upgrades (like standalone solar panels or an EV charger) where at least 50% of the loan is used for green measures. | |
| SBCI Home Energy Upgrade Loan | 3.00% to 3.75% | Significant retrofits managed through an SEAI contractor that achieve at least a 20% energy efficiency boost. |
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 longer and may require you to complete the application process by phone or face-to-face.
How much do home improvement loans cost?
Home improvement loans sometimes have lower interest rates than standard personal loans.
However, a larger loan amount will naturally result in a higher overall interest cost, but it also depends on several other factors, 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
Can you repay home improvement loans early?
Yes, you can often repay the loan early or overpay without penalty, especially if the loan is a variable rate loan. Fixed rate loans, on the other hand, may incur a ‘breakage’ fee if settled early.
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 off your loan early, choose a lender or loan type that won’t leave you with a penalty for doing so.
Green home improvement loans
If you want to make your home more energy efficient or improve its BER, a green loan could save you money, but there are terms attached.
You will 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?
Many 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.
What is the SBCI 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
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 SBCI Home Energy Loan Scheme, and around seven credit unions from the Irish League of Credit Unions are also offering the loan scheme.
Case StudyNew homeowners need to upgrade heating system and install EV charger
Sarah and David in Louth want to replace their old, failing gas boiler, fit smart multi-zone heating controls, and install an EV charger for their new plug-in hybrid.
Funding options
Because they are keeping a fossil-fuel gas system, they cannot use the low-cost 3% SBCI scheme or claim an SEAI grant for the new boiler. However, they can fund the project using a standard bank green loan combined with individual standalone SEAI grants for the EV wallbox charger and smart controls.
Grants available
The new boiler does not qualify for an SEAI grant, but installing multi-zone smart thermostats does.
| Upgrade | Gross cost | SEAI Grant | Out-of-pocket cost |
|---|---|---|---|
| Boiler and heating controls upgrade | €4,700 | -€700 | €4,000 |
| EV Home Charger | €1,300 | -€300 | €1,000 |
| Total project | €6,000 | -€1,000 | €5,000 |
Borrowing secured
The couple secures €5,000 via a green home improvement loan on a 3 year (36-month) term at 6.4% APR. The project qualifies for this discounted green rate because the EV charger and smart controls total €2,500, which represents 55% of the loan allocation and successfully exceeds the bank’s mandatory 50% “green use” threshold.
- Monthly Repayment: €152.60
-
Total Repayable: €5,493.60
- Total Cost of Credit: €493.60
What next?
Once the loan funds are cleared to pay the contractors upfront and the work is certified, Sarah and David can submit their paperwork to the SEAI, and the €1,000 cash grant rebate will be paid into their bank account within weeks.
What SEAI 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 Home Energy Upgrade Loan Scheme?
The SEAI grant and the SBCI 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.
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:
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
- Sign your loan agreement, and the funds will be transferred to your account
- Keep builder’s receipts and documentation in case you want to claim SEAI grants or tax relief later
Applying for a Home Energy Upgrade Loan
The process of applying for a home energy upgrade loan is more complex.
The first step is to confirm that your home and improvement plans fit the lender’s eligibility criteria.
If you’re applying for this type of loan, 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.
Do credit unions offer home improvement loans?
Yes, and Credit union home improvement loans can sometimes 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.
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 and its monthly repayments, and if you’re unsure, talk to a mortgage advisor or broker.
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.
Does my credit history affect my loan chances?
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.
Learn about how loans work in Ireland in our Complete Guide to Loans.