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6 Ways to Pay For Home Improvements

There are many reasons people undertake home improvement projects. They want to increase the value of their home; they may plan to build and add things to create their dream home. Sometimes, people are just bored and feel like a renovation is less hassle than looking for a brand new house to live in.

However, home improvement can be expensive, and while it might make the home worth more, the issue is paying for it straight away. If you don’t have the money at all, it feels unwise to recommend that you seek a home improvement solution. But, if you are convinced you need it, and you need it as soon as possible, then here are seven ways you can pay for and fund your home improvements. 

Pay With Cash

Saving up and paying with cash is arguably the easiest way to pay for home remodelling. You can pay for the improvements on the spot, and you don’t need to worry about interest rates or owing for longer than you can afford. 

Paying with cash also allows you to pursue the home improvements at a pace that suits you. Still, it requires sensible saving and depending on the nature of the home improvement, you may need to wait a while until you have enough money to pay for the work. This might not be ideal for emergency improvements. 

Furthermore, there could be added costs that you nor the workers expected. If you’ve budgeted for a specific amount, you may not be able to pay any excess costs with the cash you’ve saved up. 

Use Your Credit Card

If your home improvement isn’t too substantial such as a small kitchen upgrade, then applying for a credit card could be the answer. It’s understandable to be apprehensive about using a credit card, but if you can find an option with 0% APR for the first year, it could prove extremely useful when searching for funding solutions. 

This credit card will help you pay for the work in full as soon as it’s completed, and with non-existent interest rates (at least for the first 12 months), you can take serious steps to pay everything off before this expires. 

You could even receive points or rewards from using this credit card, which is a pleasant bonus, and you can put these towards treating yourself even more. 

Unsecured Loans 

Most homeowners will consider unsecured loans as a means of making home improvements for their property. These loans come with no collateral, so even if you default, your assets are safe. Despite this, it’s vital to stress that you don’t default on your payments. 

It isn’t that easy, though, and while the majority of home improvement loans will be considered unsecured, you need to have proof that you are someone the bank or mortgage company can lend to responsibly. You will need good credit and credit history.

Unsecured loans will typically not have as big of a borrowing rate, either. So if you are planning a substantial home improvement, an unsecured loan may not cover it. 

Secure Loans

Secured loans are, unsurprisingly, the opposite of an unsecured loan. These are loans that will require collateral to receive the credit. Typically, this is your car or even your home. Secured loans can be more flexible, and the interest rates are often lower. However, this is balanced out by the fact your assets are at risk if you default on a payment. 

They are preferred by homeowners who might not have the cleanest credit history, and a secured loan will also provide more considerable borrowing potential, which is ideal for big projects. 

If you feel confident you are in a stable position to pay back this loan across the repayment period (which is also longer than an unsecured loan), it is a useful solution. However, if you do not feel financially secure, then this is not for you. 

Remortgage Your Home 

Choosing to remortgage your home is another useful solution if you require a significant investment for your home improvements, such as completely renovating the bottom floor or adding an extension. 

If there is enough equity in your home, it can flood you with the cash you need to achieve these improvements. However, remortgaging your home is not always easy, so there may be a few roadblocks you encounter along the way. You’ll need to make early repayments to your current lender, and this can be pricey depending on how much you’ve already paid. Furthermore, it stretches your mortgage even longer, hindering the financial freedom you’ve been looking forward to. 

But, this can prove beneficial eventually. If you are completing a renovation to sell your home, a substantial remodel could add thousands to the property, allowing you to recoup the payments quickly. Even if you are not selling immediately, it will still increase the home value if you choose a renovation that is ahead of the current housing trends. 


Investments are something that people consider for home improvements as long as they are not in any particular hurry, especially as much of investing is playing a long game. 

Whether you have experience in the market or not, though, investments could prove beneficial if you get lucky. You can consider a wide range of investment opportunities, such as forex, although it’s well known that beginners should always use a demo first before they make any important decisions regarding their investments. 

It isn’t just forex, though. You could even invest in other properties if you have the capital to do so. It’s a tired cliche about landlords using the rent to pay for renovations on their own home. Still, with the money you can make from renting, it’s not a terrible idea to consider, and it could help you balance renovations and mortgage payments all in one. 

Building a Better Home

Everyone deserves to live in the home of their dreams, but it can be challenging to achieve that home without some much-needed home improvements. Whether you need to save up, apply for a loan, consider investments, or are lucky enough to pay outright with cash, the home improvements you’ve always wanted are not too far away.