Are you considering taking on some home renovations in 2026? Renovations are about more than just aesthetics – they’re a strategic investment. Whether you’re planning to sell in the next few years or simply want to improve your home’s comfort and functionality, choosing renovations with strong returns can make a meaningful difference.
Be sure to talk to your mortgage agent about financing options for your renovations.
Here are five home upgrades that continue to deliver the best return on investment (ROI) for your renovation budget:
1. Kitchen Renovations. The kitchen remains one of the most valuable rooms in any home. Updated kitchens – even mid-range renovations – can deliver returns of 75-100% of their cost. Simple upgrades such as modern cabinetry, durable countertops, energy-efficient appliances and improved lighting often have a strong impact on resale value without requiring a full gut renovation.
2. Bathroom Updates. Bathroom renovations consistently rank high for ROI, especially when updates focus on functionality and modern design. New fixtures, vanities, tile and walk-in showers can return 60-80% of renovation costs, while also improving everyday living.
3. Basement Finishing & Creating Secondary Suites. Finishing a basement adds usable square footage and versatility. Creating a legal secondary suite can significantly increase a home’s value and appeal to buyers seeking rental income or multi-generational living options. Depending on the project and location, basement renovations can yield 65-120% ROI.
4. Energy-Efficient Improvements. Energy efficiency is increasingly important to buyers. Upgrades such as improved insulation, energy-efficient windows, heat pumps and smart thermostats can reduce utility costs while increasing market value. These renovations typically offer 50-80% ROI and may qualify for rebates or incentives.
5. Curb Appeal & Exterior Enhancements. Exterior upgrades, including new siding, garage doors, front doors and landscaping, create strong first impressions and can deliver returns of 60-100%. Even modest improvements can significantly enhance perceived value.
Financing your renovations
Many homeowners delay renovations because they’re unsure how to pay for them. This is where a conversation with your mortgage agent can prove especially helpful. Renovation financing options may include:
· Home equity lines of credit (HELOCs)
· Mortgage refinances to access built-up equity
· Purchase-plus-improvement mortgages (for buyers planning renovations after purchase)
Your mortgage agent can review your current mortgage, equity position and long-term goals to help determine the most cost-effective way to fund renovations. In many cases, financing
renovations through your mortgage can offer lower interest rates than unsecured loans or credit cards – helping stretch your renovation budget even further.
Wondering what your best renovation financing options are? Answers to all your questions are a call or email away!