Deck & patio financing: costs for new, remodel or repair

Hoping to enjoy the warmer months even more by adding a patio or deck to your outdoor space but don’t have all the cash up front? You have financing options, including your pick of home equity financing, personal loans, contractor financing and more.

How much does it cost to build a deck or patio?

A new deck generally costs more to build than a new patio but can add more value to your home. Costs can vary widely depending on the size of the deck or patio and the materials used. It also depends on the location of your new outdoor living space and how elaborate the design is.

According to HomeStars, it can cost several hundred dollars up to $50,000 to build a new deck or patio, with average costs running around $6,500–$13,900 across major Canadian cities. Expect to pay around $12–$30 per square foot for brick, pavement or flagstone plus an additional $8–$12 per square foot for standard labour. Special projects with unique, complex designs will likely cost you more.

Again, those ranges reflect the size of the structure and the materials used plus how difficult it is to construct in your chosen location. For example, if you’re installing a patio and the ground is sloped, it’ll take more work—and therefore more money—to complete.

Calculate your loan costs for patio and deck financing

How much you’ll pay for your loan depends on the lender, the type of loan, your interest rate and loan terms, which varies depending on your eligibility. Play around with how much you might pay by using our deck and patio financing calculator. Based on average costs for a decks and patios you may be able to accomplish your project with a personal loan of $5,000 up to a $10,000 loan.

Patio and deck financing options

If you don’t have the extra cash lying around to fulfill your dream of a new outdoor space—and most people don’t—there are a number of deck and patio financing options.

Personal loans

With average loan amounts ranging anywhere from $500 to $50,000, a personal loan should certainly be enough to cover the costs of a new deck or patio and then some. You typically have 3 – 60 months to repay the loan, so you may not even have to stretch your monthly budget too far.

Interest rates for personal loans typically range from 6.99% to 46.96%, but you’ll need a good credit score of at least 660 to qualify for a decent rate. Even if you don’t have the best credit score, you may still get a more reasonable rate than credit cards—making personal loans some of the best home improvement loans on offer.

Related: Explore the best personal loans

HELOC or home equity loan

One of the smartest ways to leverage your home’s equity is to make improvements on your house, and a deck or patio is a great addition that adds value to your home. You generally need at least 20% equity in your home to qualify, although some lenders may accept less.

One option is a home equity loan, which offers a lump sum like a personal loan. Normally, home equity loans come with fixed interest rates and terms, meaning you repay the loan in equal monthly installments over the loan’s life. You can typically land a better rate with a home equity loan than a personal loan since your home acts as collateral. However, your home is at risk if you can’t repay the loan.

Another possibility is applying for a home equity line of credit (HELOC). A HELOC is a revolving line of credit—similar to a credit card—where you can borrow as much or as little as you like up to your approved limit. This option might be a good choice if you plan to make it a DIY project and aren’t sure how much it will cost. That way, you don’t risk borrowing more than you need.

Credit cards

Financing a deck or patio on a credit card may not seem like the best idea because of high interest rates. But, if you’re only putting in a small patio that costs a couple thousand dollars, it might not be a bad option. Plus, if you can pay it off quickly, that’ll help to minimize interest charges.

Alternatively, you could apply for a low interest rate credit card. It’s typically easier to qualify for a credit card than a loan, but depending on your credit score and income, you might only qualify for a small credit limit.

Contractor or vendor financing

Some contractors offer in-house or third-party financing. If the financing is handled in-house, there may not even be a credit check, but you should watch out for hidden fees or surcharges. Sometimes, you might get a short-term promotional deal from a contractor, although these may be limited to large operations.

If you plan to install the deck or patio yourself, you could look into financing deals from large home improvement retailers, like Home Depot or Rona, where you buy your materials. These stores often have financing for up to several months or more, which can give you time to pay down the balance as you go. But read the fine print so there aren’t any surprises down the road.

How to get patio or deck financing

Qualifying for a deck or patio loan depends on the loan type, your credit score and other factors, but here are some basic guidelines to get you started.

1. Define your budget. Whether you want a patio or deck to spruce up your yard, estimate how much you can afford to borrow and try to stick to it.
2. Get multiple estimates. It’s helpful to get detailed estimates from multiple contractors to compare costs of materials, labor and other charges.
3. Check your credit score. Finding out your credit score can help you decide which loan options make the most sense.
4. Estimate your home’s equity. If you think home equity financing is the right move, figure out how much your home is worth versus what you owe to see if it’s an option. In general, you’ll need at least 20% equity to qualify.
5. Prequalify. If possible, prequalify with multiple lenders to get an idea of the interest rates and loan terms you may qualify for.
6. Read the contract. Be sure to read the terms and conditions, and watch for any hidden fees before you sign.

Bottom line

Adding a deck or patio to your yard is an excellent way to enhance your outdoor space. Plus, it adds value to your home, so it can provide a good return on your investment if you decide to sell. With so many financing options—such as personal loans, HELOCs, home equity loans and contractor financing—you can save your emergency fund for when you really need it.

Frequently asked questions

• Is building a deck or patio a good investment?

  Adding a deck or patio should increase your home's value, but how much it increases depends on the materials used. The value can also be raised by adding specific features like new patio doors or a built-in firepit, hot tub or pool. To know which patio and deck materials add the most value, consider asking a local real estate agent.

• Are there any tax breaks if you build a patio or deck?

  If you're using a personal loan or contractor financing, there are no tax breaks for adding a deck or patio. However, if you use a home equity loan for deck or patio financing on an income-generating property (like a rental property), you may be able to deduct the interest paid on the loan. Speak to a tax professional for more details.

• How do most people pay for a deck or patio?

  Some people save until they can afford to build a patio or deck or use a windfall like a year-end bonus or tax refund. But most people use deck or patio financing to spread out the project's cost.

• Can you pay for a deck in installments?

  Most financing options, such as personal loans, contractor financing or home equity financing, are also known as installment loans. You repay the deck or patio financing in monthly installments over a fixed period.

Check out our other home improvement guides

• Home improvement loans
• Pool financing
• Hot tub financing

• Roof financing
• Septic tank financing
• Landscaping financing