“If there’s instability and you would find yourself unable to make your payment obligation, that would put you in a bad spot,” he said.
“If you’re currently stretched and you don’t have a lot of room available in your budget, it probably isn’t the right time to invest within the home.”
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Humm Canada, a lender which provides financing plans through a fully digital application process, said its average loan size for home improvement projects in 2024 was $8,129 per consumer.
The company provides up to $30,000 to help cover substantial home improvement expenses like renovations, appliances and big paint jobs, and customers have five years to repay the amount they take out. Humm also partners with home improvement retailers, which can share in the interest on loans to help ease the financial burden for customers.
While a home improvement project may seem like more of a want than a need for many, “it’s not like fast fashion or buying a Jet Ski,” said Tim Moulton, country head of Humm Canada.
“House renovations are part of something that, over a long period of time, pays off,” he said.
“And of course, the quality of life changes quite a bit as it relates to that.”
Moulton said the company is often involved in financing backyard projects such as patio and deck additions, and is increasingly seeing customers use its services to fund solar panel installations. He called the latter a useful investment due to the cost savings it returns over the long term.
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