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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.

How to finance your home renovation with RBC

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:

why renovate

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 RBC Rewards points on your renovation spending, which can be redeemed for merchandise, gift cards, and more depending on the number of RBC Rewards 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

Mortgage Fundamentals

Buying a home comes with many steps – and a lot of terminology! When you understand the basics, you can make the most of your next mortgage.

You have a lot of choices when it comes to your mortgage – from the type of rate, length of term to the kind of insurance to consider. Learning some fundamentals now can help you make the decisions that are best for you.

Mortgage Payment Calculator

Quickly See What Your Mortgage Payments Might Look Like

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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.


Book an appointment

If you are an RBC Online Banking Client, you can start online through


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Home Improvement Tips and Advice

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