Home Improvement Loans - How They Work

If your home no longer fits your life, moving isn’t the only option. From attic conversions to extensions, making the choice to improve your home can be a smart long term investment.

That’s where a Home Improvement Loan can come in.

In this guide, we’ll walk you through what is a Home Improvement Loan, how it works in Ireland, and how much you can borrow.

What is a Home Improvement Loan?

A Home Improvement Loan is a type of loan designed to help pay for renovations, upgrades, or large scale improvements to a property.

Unlike a standard Personal Loan, it’s taken out to fund work on your home, either to give better comfort, increase value, or improve style.

The big advantage? You can make major improvements now and spread the cost, with manageable monthly repayments.

How do Home Improvement Loans work?

Understanding how Home Improvement Loans work is easier than most people expect.

Here’s how it works:

1. Apply for a loan and your application will be reviewed based on your income, credit history, and ability to afford repayments
2. If approved, the money is transferred into your bank account
3. The money can then be used to pay for your home renovations
4. The loan is repaid over an agreed term, usually in monthly instalments

What can a Home Improvement Loan be used for?

Home Improvement Loans are ideal for big projects, where you can truly transform your home.

Common uses include:

Structural improvement

• Home extension
• Attic or loft conversion

Comfort

• New kitchen or bathroom
• Improved insulation
• Windows, doors, and roofing

Energy projects

• BER improvements
• Insulation improvement

These projects can be expensive, which is exactly why many people choose financing. If you’re thinking of home improvements, don’t forget little changes to the garden can also transform your home's appearance. See our blog on garden renovation ideas for some inspiration.

How can I get a Home Improvement Loan?

If you’re asking ‘how can I get a Home Improvement Loan?’, the process usually follows these steps:

1. Check affordability
2. Choose the loan type
3. Apply online for a Home Improvement Loan
4. Provide documents as needed
5. Get approval and funds

Approval can often be faster than people expect, especially if you already own your home and have a stable income.

How much can I borrow for home improvement in Ireland?

How much you can borrow varies between cases. With Avant Money you can borrow any amount between €5,000 and €75,000.

Before making a decision, we will look at:

• Your income and employment status
• Existing mortgage balance
• Property value and equity
• Credit history

Once you are done with your larger project, don’t forget the little changes that can make a big difference see our tips on how to make your house look expensive on a budget.

Is a Home Improvement Loan right for you?

If you have a picture of your ideal home in your mind, or simply looking to add long term value, a Home Improvement Loan can be a practical solution.

The key is choosing the right type of loan, with repayments that fit into your budget.

*Rates and loan terms are correct as of 20th May 2026 and are subject to change (Source: CCPC.ie, not including Green Loans). The Maximum APR (Annual Percentage Rate) on all Avant Money loans is 19.9%. Minimum loan term is 12 months, and maximum term is 120 months. Loan terms vary depending on the purpose of the loan. Terms greater than 84 months up to a maximum of 120 months are only available for Refinance and Home Improvement Loans of €20,000 to €75,000.

Representative example:  On a €30,000 loan over 5 years, at a fixed rate of 6.5% (6.7% APR) you will pay €586.98 a month. The total cost of credit would be €5,219.07 and the total amount repayable would be €35,219.07.

Lending criteria, terms and conditions will apply. Personal Loans are available to residents of the Republic of Ireland over the age of 18 and are subject to repayment capacity and financial status. Proof of income and a credit reference agency search will be required to help us approve your request. Personal Loans are unsecured and not available for business purposes, house purchase or investment.

Our interest rates vary depending on the value of your loan and credit profile. We will assign you the appropriate interest rate once your application has been reviewed. To find out more about the loan values and applicable interest rates, check out our rate table.

Bankinter S.A., trading as Avant Money, is authorised by the Banco de España in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.