Renovation loan 2026 – compare the best loans for home renovation
Compare renovation loans: consumer loan, mortgage top-up and Finnvera support. Bathroom, kitchen, facade, electrical and plumbing – free comparison and household tax credit guide.
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Finnish households renovate for approximately €3 – €4 billion annually (Confederation of Finnish Construction Industries RT). The most common projects are bathrooms, kitchens and heating systems. The household tax credit (60 % of labour paid, cap €2,250/person/yr) makes renovations significantly cheaper – for €3,000 of labour you can deduct up to €1,800 in taxes. Comparing financing before starting the renovation typically saves €800 – €3,500 over the full loan lifecycle.
The most common renovation projects in Finland in 2026
The total renovation budget depends on the project and material tier. Below are typical Finnish professional-use prices in 2026 – these include both labour and material costs (household tax credit 60 % of the labour portion).
Bathroom renovation (most common)
Finland's most popular renovation target – about 60,000 bathrooms are renovated annually. A waterproofing qualification certificate is statutory. Popular Finnish contractors: Rakennustori, local contractors found via Rakentaja.fi.
- Light refresh (surfaces, new fittings) 5 000 – 12 000 €
- Basic renovation (waterproofing + tiles + fittings) 12 000 – 22 000 €
- Premium renovation (design tiles, sauna, underfloor heating) 22 000 – 40 000 €
- Big bathroom or two WC spaces 25 000 – 50 000 €
Kitchen renovation
The second very common target. Popular Finnish cabinet chains: IKEA (Metod system), Puustelli, Novart, Kotila. Renovation can be either a full remodel or a light refresh.
- Light refresh (doors, cabinet fronts, lighting) 5 000 – 12 000 €
- Mid-tier renovation (new carcasses, worktop, appliances) 12 000 – 25 000 €
- Full remodel (Puustelli, Novart, stone worktop) 20 000 – 40 000 €
- Premium (design cabinets, stone worktop, premium appliances) 30 000 – 60 000 €
Heating system replacement
A big transition is underway in Finland from oil and electric heating to air-source heat pumps (AWHP) and geothermal. State subsidies: energy grant (25 – 60 % of investment) and household tax credit.
- Air-source heat pump (AWHP) for a detached house 13 000 – 20 000 €
- Geothermal system 20 000 – 30 000 €
- Solar panels (5 – 8 kWp system) 10 000 – 16 000 €
- Heat-recovery ventilation (HRV) 8 000 – 15 000 €
Electrical and plumbing renovation
Large surface-level works in old (30+ year) detached houses and apartments. Electrical and plumbing contractor certifications are often required. Labour share typically 60 – 70 % of total price.
- Electrical rewiring (2R+K apartment) 5 000 – 12 000 €
- Electrical rewiring (detached house) 12 000 – 25 000 €
- Water pipes and drains (apartment) 4 000 – 10 000 €
- Water pipes and drains (detached house) 15 000 – 30 000 €
Facade and roof renovation
A big one-off large renovation category for detached-house owners. Facade insulation and roof renovation replacement is a big investment but significantly reduces energy costs.
- Facade insulation + rendering (detached house 150 m²) 25 000 – 45 000 €
- Roof renovation (felt/metal, 150 m²) 15 000 – 30 000 €
- Window replacement (10 windows) 8 000 – 18 000 €
- Terrace + railing (detached house) 5 000 – 15 000 €
Total cost: €15,000 bathroom renovation financing
Example of an 8 m² bathroom renovation (waterproofing, new tiles, fittings). Labour portion €8,000, materials €7,000. Household tax credit 60 % of labour = €4,800 saving.
| Financing need (materials + labour) | €15,000 |
| Consumer loan 5 yr, APR 8.4 % | ~€305/mo, ~€18,300 total |
| Mortgage top-up 10 yr, APR 4.5 % | ~€155/mo, ~€18,700 total |
| Secured renovation loan 8 yr, APR 6.4 % | ~€200/mo, ~€19,100 total |
| Household tax credit (60 % of labour, max €2,250/person) | -€4,500 in taxes |
| Total investment | Net cost ~€14,000 – €14,800 after credit |
The household tax credit reduces the net cost by 30 %. Ask the contractor for a separate labour and material invoice so you can use the credit. Two spouses deduct on both = max €4,500/household.
Renovation loan options in Finland
Renovation loan requirements
- Regular income – at least €1,800/mo net (for big renovations €2,500+)
- Clean credit record
- For a mortgage top-up: owned home and sufficient collateral value
- For a secured renovation loan: home as collateral or renovation target
- Age at least 20 – 23 years
- Total debt assessment: new instalment + other loans ≤ 40 % of net income
How to apply for renovation financing – 7 steps
- Determine the total renovation budget + 10 – 20 % buffer for unexpected extras. Remember to include possible temporary furniture and hotel costs (if the renovation lasts several weeks).
- Request 2 – 3 contractor quotes (Rakentaja.fi, Urakkamaailma etc.). Compare price and offer.
- Check whether you're eligible for state subsidies (for energy renovations ARA).
- If you own the home, ask your own bank for a mortgage top-up – almost always cheapest.
- Compare 3 – 5 lender consumer loan / secured renovation loan offers on Lainafy.
- Accept the financing offer and sign the contractor agreement. Ask the contractor for a separate labour and material invoice for the household tax credit.
- Money is transferred to your account or directly to the contractor. Keep records of work hours and all invoices for taxation.
Case example: Ninni's kitchen renovation – €22,000, Helsinki
Ninni and Petri were a 40-year-old couple who owned a 4-room apartment in Töölö, Helsinki. They wanted to fully remodel the kitchen (new carcasses, stone worktop, Miele appliances). The kitchen contractor's (Novart) offer: €22,000 (labour €9,000, materials and appliances €13,000). After comparison their own bank offered a mortgage top-up at 4.5 % rate, which was 3 percentage points lower than a consumer loan.
- Own capital (savings)
- 7 000 €
- Mortgage top-up (8 yr, APR 4.5 %)
- €15,000
- Monthly instalment
- ~€187/mo
- Household tax credit (60 % of labour, max €2,250/person × 2)
- -€4,500 in taxes
Result: Ninni and Petri's total savings: mortgage top-up vs. consumer loan ~€2,200 over 8 yr + household tax credit €4,500 = €6,700 total saving. The new kitchen also raised the apartment value by an estimated €15,000 – €20,000.
The most common mistakes in renovation loans
- Not using the household tax credit – 60 % of labour (max €2,250/person/yr). Two spouses = max €4,500/household. Requires a separate labour invoice.
- Not comparing contractors – in Finland the same renovation's prices can vary 30 – 50 % depending on the contractor.
- Not leaving a buffer – a renovation almost always uncovers unexpected extras (poor structures, moisture damage). Reserve a 10 – 20 % buffer.
- Taking a consumer loan when mortgage top-up would be possible – top-up saves typically 2 – 5 pp in APR = €1,000 – €5,000 on a big renovation.
- Not checking state subsidies for energy renovations – heat pump, solar panels and HRV can get 25 – 60 % grant from ARA.
- Hiring a contractor without a business ID – doesn't entitle to the household tax credit. Check the business at ytj.fi.
Frequently asked questions
What is the best financing form for a renovation?
For renovations over €15,000 mortgage top-up is almost always cheapest (APR 4 – 5 %). For under €15,000 renovations a consumer loan from Lainafy is fastest (APR 6 – 12 %). A secured renovation loan suits when mortgage top-up is not possible.
How much does the household tax credit save?
The household tax credit is 60 % of the labour price (2026), up to €2,250/person/yr. Together with a spouse max €4,500/household. E.g. for €8,000 of labour the credit is €4,800 – but only up to €2,250/person in taxes.
Can I use the loan also for materials?
Yes. Consumer loans are not restricted to a specific purpose. Remember: the household tax credit ONLY applies to the labour portion – materials are not deductible. Ask the contractor for a separate labour and material invoice.
When is a renovation loan worthwhile instead of a mortgage top-up?
If the bank doesn't grant a top-up (e.g. no mortgage capacity or collateral value is insufficient), a secured renovation loan is the second best. Also if the renovation amount is small (under €10,000), a consumer loan can be more practical.
Can I get state support for a renovation?
Yes, for energy renovations: air-source heat pump, geothermal, solar panels and HRV get a 25 – 60 % grant via ARA. General bathroom and kitchen renovations don't get direct state support, but the household tax credit compensates significantly.
How does a renovation raise the home value?
A bathroom renovation typically raises the value 60 – 90 % of the renovation cost. Kitchen renovation 50 – 80 %. Heating system replacement 40 – 60 %. Electrical and plumbing renovation 30 – 50 %. A full renovation in an old apartment can produce 100 %+ value increase.
How quickly do I get a renovation loan?
Consumer loan: same day after application approval. Mortgage top-up: 2 – 4 weeks. Secured renovation loan: 1 – 2 weeks.
Is it worth paying for the renovation with cash from savings?
Cash is always cheapest (0 % interest), but few can invest €15,000 – €30,000 in one purchase without draining emergency savings. Recommendation: 30 – 50 % own capital + rest with a loan. This keeps enough buffer for other unexpected costs.
See also other financing options
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