Renovating a home is one of those projects that starts with a simple idea—maybe updating the kitchen or redoing the bathrooms—but can quickly evolve into something far more ambitious. If you’re a homeowner or looking to buy a fixer-upper, you might be wondering: Can I get a mortgage for a renovation project? The short answer is yes, but the details matter a lot.
As someone who’s been through a major home renovation myself, I know how confusing it can be to figure out the best financing route. There are multiple ways to fund a renovation—standard mortgages, home improvement loans, credit cards, and even personal loans from banks like Emirates NBD. Each option has its pros and cons depending on the scale of your renovation, your financial situation, and your long-term goals.
Let’s explore how renovation mortgages work, what alternatives are available, and how tools like the FAB Bank credit card and an Emirates NBD personal loan can play a helpful role in managing your renovation finances.
Understanding Renovation Mortgages
A traditional mortgage typically covers the cost of buying a home. But what if the home needs serious work before it’s livable or functional? That’s where renovation or home improvement mortgages come into play. These are specialized loan products that combine the purchase price of the home with the estimated renovation costs into one mortgage.
These are commonly known as renovation mortgages or construction loans, and they’re especially useful when buying an older property or one that’s being sold “as-is.” The bank will usually require a detailed renovation plan and cost estimate before approving the loan. Funds are often released in stages based on renovation milestones rather than as a lump sum.
In the UAE, options for renovation financing are growing, although not all banks offer combined renovation mortgages. In many cases, homeowners use other financial tools to cover the renovation portion.
What If You Already Own the Property?
If you already own your home and want to renovate, your mortgage probably won’t help you unless you’re refinancing. In this case, a cash-out refinance could be an option, where you borrow more than your current mortgage balance and use the extra cash for renovations. But this can be complex and isn’t always practical due to interest rates or existing loan terms.
So, what are the alternatives?
Emirates NBD Personal Loan for Renovation Projects
One of the most flexible ways to fund a home renovation in the UAE is through a personal loan, especially if the renovation budget is moderate to high. Emirates NBD personal loan is among the most well-known in the region for their competitive interest rates and flexible repayment options.
As of my last inquiry, Emirates NBD offers personal loans with repayment periods of up to four years (five for UAE nationals), and you can borrow a significant amount depending on your salary and creditworthiness. If you’ve got a strong financial track record, you can even negotiate better terms.
The beauty of using a personal loan is that you’re not limited by the bank’s oversight on how the money is spent. Once the funds are in your account, you’re free to allocate them across various renovation expenses—whether it’s buying materials, hiring contractors, or purchasing new appliances.
However, be mindful of interest rates and repayment obligations. While convenient, personal loans can become costly if stretched over a long period, especially if you’re not disciplined with monthly payments.
Can a FAB Bank Credit Card Help with Renovation Costs?
Surprisingly, the FAB Bank credit card can be a useful tool for managing smaller renovation costs or spreading payments over time. While it’s not a primary source of funding for a full-scale remodel, it can work well in conjunction with other financing options.
FAB (First Abu Dhabi Bank) offers a variety of credit cards with benefits like 0% interest installment plans, cashback on home improvement purchases, and generous rewards programs. If you’re buying big-ticket items like furniture, electronics, or even paying contractors, you can often split those payments into manageable chunks over 6–12 months at zero interest.
I personally used a FAB card during my own renovation to cover interim costs while waiting for a personal loan to be approved. It worked smoothly for urgent expenses like fixing a leaking roof and buying a new AC unit—both of which couldn’t wait.
Of course, using credit cards comes with a warning: don’t overspend or miss payments. Interest rates on credit cards can be high if you’re not careful, and late fees add up fast. Still, when used strategically, they offer a layer of flexibility that can make your renovation process less stressful.
Renovation Budget Planning: Where Most People Go Wrong
From experience and many stories shared in homeowner communities, one common pitfall in renovation projects is underestimating costs. Renovations often exceed budgets due to unexpected issues, like structural problems, electrical rewiring, or last-minute changes in material choices. That’s why I always recommend setting aside at least 15–20% of your total renovation budget for contingencies.
Using a combination of a personal loan and credit card (like from Emirates NBD and FAB Bank, respectively) allows for more control over cash flow. For example, you might use the Emirates NBD personal loan to cover primary costs—contractors, permits, major materials—while your FAB Bank credit card handles the purchases that are smaller but still essential, like paint, décor, or emergency fixes.
What Banks Consider Before Approving a Renovation Mortgage or Loan
Whether you apply for a renovation mortgage, personal loan, or use a credit card for home improvements, banks will consider several key factors:
Your credit score and payment history. The better your record, the more favorable the terms.
Your monthly income and existing debts. They calculate your debt-to-income ratio to ensure you can handle the repayments.
Details of the renovation project. For renovation-specific loans or mortgages, banks may ask for blueprints, contractor quotes, and a timeline.
Property valuation. In cases of refinancing, the expected increase in property value post-renovation is often considered.
These factors collectively determine not only approval chances but also your interest rate and repayment tenure.
Final Thoughts: What’s the Best Route?
The ideal way to fund a renovation depends on your circumstances. If you’re buying a fixer-upper, try negotiating with your bank for a combined mortgage that includes renovation costs. If you’re already a homeowner, a personal loan like the one from Emirates NBD gives you the freedom to customize your renovation timeline and spending.
Meanwhile, keeping a FAB Bank credit card in your toolkit can provide flexibility when you’re in between payments or need to make quick decisions. Used smartly, it’s an underrated renovation asset.
At the end of the day, your renovation journey should be guided by a clear budget, strong financial planning, and the right blend of funding tools. With the right strategy, even a modest home can be transformed into a dream space—without turning your finances upside down.
If you’re planning a renovation, take the time to talk to your bank, understand your options, and map out a financial plan that doesn’t just get the job done, but keeps you financially healthy in the long run.
Have you used a renovation mortgage or loan? I’d love to hear your experience—feel free to share it in the comments below!
