The Best Credit Cards for DIY Home Improvements in Canada

Home renovations can be one of the biggest expenses homeowners face, whether you're remodeling a kitchen, replacing appliances, upgrading your backyard, or tackling a weekend DIY project. The right credit card can help offset those costs by earning cash back, travel rewards, or offering lower borrowing costs on your purchases.

Here are our picks for the best credit cards for home improvements in Canada, including the best options for flexible cash back, travel rewards, low-interest financing, and shopping at retailers like Home Depot and Canadian Tire.

Best home improvement credit cards in Canada compared

The Tangerine Money-Back Credit Card is one of the best credit cards for home improvements in Canada because it lets cardholders choose Home Improvement as one of up to three 2% cash back categories. This means eligible purchases at retailers like Home Depot, Canadian Tire, IKEA, and other home improvement stores can earn elevated rewards instead of the standard 0.5% cash back.

Unlike many cash back credit cards with fixed bonus categories, Tangerine gives you the flexibility to update your spending categories as your needs change. If you're planning a renovation, you can select Home Improvement to maximize your rewards, then switch to other categories after 90 days once your project is complete. Better yet, there's no annual fee and no cap on the amount of 2% cash back you can earn, making it an excellent choice for both small DIY projects and large renovation budgets.

The SimplyCash Preferred Card from American Express is one of the best cash back credit cards for home improvements if your renovation spending won't fit neatly into a bonus category. It earns an unlimited 2% cash back on virtually every eligible purchase, making it a great choice for buying building materials, appliances, lighting, furniture, and other renovation essentials without worrying about spending categories. It also comes with strong insurance benefits, including purchase protection and extended warranty coverage, which can add value when buying expensive tools, appliances, or electronics.

The Scotiabank Scene+ Visa Card is one of the best no-fee credit cards for home improvements thanks to its bonus rewards at Home Hardware. Cardholders earn 2 Scene+ points for every $1 spent at Home Hardware, Home Building Centre, and Home Furniture locations across Canada and online at homehardware.ca, making it a solid choice for homeowners who regularly shop there for renovation supplies and materials.

Beyond home improvement purchases, you'll also earn 2 Scene+ points per dollar at participating Sobeys-owned grocery stores and 1 point per dollar on all other eligible purchases. With no annual fee and flexible redemption options for travel, groceries, dining, entertainment, and more, it's an easy way to earn rewards on everyday spending while tackling your next renovation project.

The CIBC Select Visa is one of the best low-interest credit cards for home improvements because it helps reduce borrowing costs when your renovation expenses can't be paid off immediately. With a regular purchase interest rate of just 13.99%, it's well below the interest charged by most rewards credit cards, making it a smart choice for larger projects that may take several months to pay down.

The card also has an affordable $29 annual fee, making it an inexpensive option for homeowners who prioritize saving on interest over earning rewards. And if you've already charged renovation expenses to another credit card, you can also take advantage of the card's introductory balance transfer offer to help lower your interest costs while paying off your project.

The American Express Cobalt Card is one of the best rewards credit cards for home improvements thanks to its valuable Membership Rewards points, which can be transferred 1:1 to several airline loyalty programs. While most renovation purchases earn the card's standard 1 point per dollar, those points can be worth significantly more than traditional cash back when redeemed for travel.

Homeowners looking to maximize their rewards can take things a step further by purchasing Home Depot gift cards at eligible grocery stores like Sobeys and Metro, where the Cobalt earns 5x Membership Rewards points. This strategy can significantly increase the rewards earned on renovation purchases, making the Cobalt an excellent choice for Canadians who prefer flexible travel rewards over traditional cash back.

When you’re shopping for supplies to complete a DIY project at home, Canadian Tire is typically one of your first stops. If that's the case, the Triangle Mastercard is an essential piece of plastic to have in your wallet.

Using this card, customers can earn 4% in Canadian Tire money when making purchases at their stores (as well as affiliated businesses such as Mark’s, Sport Chek, and Party City). Considering the wide array of home improvement products available at Canadian Tire, spending big on this card could net you serious rewards to use when buying for future projects. Not only that, but for bigger purchases, the card offers a no-interest financing option on transactions of $150 or more, allowing you to pay for large-scale items on an installment plan of 24 months - something that may come in handy when trying to budget for the more expensive items on your list. And to top it off, there’s no annual fee, which is comforting for a card you may not be using all the time.

Can you pay for renovations with a credit card?

Yes, you can pay for many home renovation expenses with a credit card, especially when purchasing materials, fixtures, appliances, furniture, or tools yourself. If you're purchasing renovation materials, fixtures, appliances, furniture, or tools yourself, most major retailers, including Home Depot, Canadian Tire, RONA, Home Hardware, IKEA, and appliance stores, accept credit cards. This makes it easy to earn cash back or travel rewards while also benefiting from perks like purchase protection and extended warranty coverage on eligible purchases.

Paying a contractor with a credit card is less common. Many contractors don't accept credit cards for many reasons, including merchant processing fees, or pass those costs on to customers through a surcharge, typically between 2% and 3.5%. If the contractor you hire does accept credit cards as payment, be sure to first compare any additional fee against the value of the rewards you'll earn to determine whether it's worthwhile.

For larger renovations, financing the entire project with a standard credit card isn't always the best option. Most rewards cards charge relatively high interest rates of around 20%, so carrying a large balance can quickly outweigh the value of any cash back or points earned. If you expect to pay off your renovation over several months or years, a personal loan or home equity line of credit (HELOC) will typically offer much lower borrowing costs. Alternatively, a low-interest credit card, such as the CIBC Select Visa, can be a good option for smaller projects or homeowners who need additional time to repay their balance while keeping interest costs lower.

How to choose a renovation credit card

Choosing the right credit card for your home renovation depends on more than just the rewards rate. Consider the size of your project, where you'll be shopping, how quickly you plan to repay your purchases, and whether you prefer cash back or travel rewards. The right card can help offset the cost of your renovation through rewards, financing options, or valuable purchase protections.

Welcome bonuses

Large home renovations often involve thousands of dollars in spending over a relatively short period, making them an ideal opportunity to qualify for a credit card's welcome offer. If you're planning to renovate your kitchen, replace appliances, or remodel your bathroom, applying for a new card before you begin your project can help you earn significantly more value than you would through ongoing rewards alone. Just make sure you can comfortably meet the minimum spending requirement using purchases you were already planning to make.

Cash back vs travel rewards

The best rewards structure depends on the size of your renovation and what you want to get out of your spending. If your goal is to reduce the overall cost of your project, a cash back card like the Tangerine Money-Back Credit Card lets you earn money back on eligible home improvement purchases that can be put toward future expenses. If you're already planning a large renovation, however, a travel rewards card like the Scotiabank Gold American Express Card can help you turn that spending into your next vacation through valuable points and a generous welcome offer. Depending on how you redeem your rewards, travel points may provide greater overall value than cash back.

Purchase protection and extended warranty

Many credit cards include purchase protection and extended warranty coverage on eligible purchases, which can add valuable peace of mind when buying expensive appliances, power tools, flooring, or electronics for your home. Purchase protection may cover eligible items against theft or accidental damage for a limited period after purchase, while extended warranty coverage can double the manufacturer's warranty on eligible products. If you're making several large purchases during your renovation, these benefits alone could make one card a better choice than another.

Financing needs

If you won't be able to pay off your renovation immediately, don't focus solely on rewards. A low-interest card like the CIBC Select Visa can help reduce borrowing costs while you pay down your balance, making it a better fit than many premium rewards cards for homeowners financing a smaller renovation. If you've already charged renovation expenses to another credit card, taking advantage of an introductory balance transfer credit card offer may also help lower your interest costs while you repay the project. For larger renovations that will take several years to pay off, however, a personal loan or HELOC will typically offer lower borrowing costs than any credit card.