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Updated 14.7.2026

Renovation loan 2026 – Finance your home renovation easily

A renovation loan is a consumer loan dedicated to renovating your home. Bathroom, kitchen, surface materials – save by comparing the best renovation loans.

  • Loan amount 1,000 – 70,000 €
  • Repayment up to 15 years
  • Free use – any renovation
  • No collateral required

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The calculation is indicative and based on a fixed annuity loan. The final rate and costs are determined based on a personal credit decision.

What is a renovation loan?

A renovation loan is a consumer loan specifically intended for renovating, repairing or remodeling your home. The lender doesn't ask exactly how the money is used – you can spend it freely on a kitchen, bathroom, surface materials, household appliances or builders.

A renovation loan can be either unsecured (most cases) or secured against the home (large renovations, > 50,000 €).

When is a renovation loan worth it?

Renovation loan is a good choice when:

  • Renovation increases the home's value – kitchen, bathroom, surface materials
  • You can't pay the renovation in cash – savings won't suffice
  • You want to renovate now – not in 5 years' time
  • Renovation costs are predictable – contractor offers and material quotes calculated

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Examples of renovation costs

RenovationTypical costSuggested repayment period
Painting walls (2 rooms)500 – 1,500 €1–2 years
Kitchen renovation (new appliances + cabinets)8,000 – 25,000 €5–10 years
Bathroom renovation10,000 – 25,000 €5–10 years
Surface materials (whole home)5,000 – 20,000 €5–8 years
Energy renovation (heat pump + insulation)15,000 – 40,000 €8–15 years

How to choose the right renovation loan?

  1. Estimate the renovation cost first: get contractor offers and material quotes. Add 10–15 % buffer for surprises.
  2. Choose the loan amount: only as much as the renovation costs.
  3. Compare the effective annual rate: not the nominal rate. Effective annual rate includes all costs.
  4. Check the repayment period: shorter = less interest, but think realistically what monthly installment your budget tolerates.
  5. Verify early repayment is free – important if you receive an inheritance, tax refund, etc.

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Does renovation increase home value?

Not all renovations equally increase home value. Best return on investment:

  • Bathroom renovation – ROI often 80–110 %
  • Kitchen renovation – ROI 70–100 %
  • Energy renovation – ROI 50–80 % + lower running costs
  • Surface materials – ROI 50–70 %
  • Cosmetic renovations (painting, small fixes) – ROI generally lower

Frequently asked questions

How much can I get for a renovation loan?

A renovation loan can be obtained at 1,000 – 70,000 € as an unsecured consumer loan. For larger renovations (>50,000 €), a secured loan (e.g. Bluestep Bank) is often more affordable.

How quickly do I get a renovation loan?

Decision usually within minutes or the same day. Money to your account within 1–3 business days. Renovation can start immediately.

Should a renovation loan be taken before or after the renovation?

Before. The lender does a credit check based on your income and credit record – the loan is approved based on these, not the renovation cost. Apply for the loan before signing a contract with the contractor.

Are interest from a renovation loan tax-deductible?

No. Interest from a consumer loan is no longer tax-deductible in Finland (the tax deduction was removed in 2023).

Should I take a renovation loan if I have savings?

Generally not – it's cheaper to use savings rather than pay interest. Exception: if the renovation increases home value more than the loan interest costs, it can be worth using debt.

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