Build your home with a Home Construction Loan from Santander Bank.

How to Pay for Home Improvements

Just because you’ve outgrown your living space doesn’t necessarily mean it’s time to go house hunting. You may love your home and its location but you need a little extra room, or you may want to give a familiar room a new look. That’s when financing home renovations makes sense. 

A Home Equity Line of Credit (HELOC) is a budget-friendly home improvement financing option with no application fees, appraisal fees, or closing costs. What’s more, you only pay interest on the amount of credit you use and that interest may be tax deductible1.         

You can choose from two monthly payment options: interest only or principal + interest, plus our fixed rate lock option allows you to set up predictable monthly payments by converting all or a portion of your outstanding balance to a fixed rate loan, up to your available credit limit2.

Using a Home Equity Line of Credit (HELOC) for Home Improvement Financing

With a line of credit for home improvements, you can finance projects big or small. Whether you are upgrading your kitchen or bathroom, adding another room to your home— or maybe you’d like to spruce up your outdoor space with new landscaping. Using HELOC for renovations can make your home feel new again.

A Home Equity Line of Credit (HELOC) allows you to reuse as you repay for up to 10 years2, so when you’re making improvements to your home, there’s built-in flexibility to help you see your project through to completion.

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Key Features of Using a Home Equity Line of Credit (HELOC) for Home Improvements:


Renovation payments made easy and conveniently. Access your available funds with a check or transfer from online banking.


Use and reuse your line of credit as you re-pay for up to 10 years2. Easily access funds from your HELOC to make necessary improvements. Plus the flexibility of the fixed rate lock option.


Enjoy a rate discount on our already-competitive rates when you set up automatic payments from any Santander Bank account 2.


Home Equity Line of Credit Payment Examples

State Draw Amount Principal and
Interest Payment
MA, RI, NJ, PA $25,000 $182.29 $78.13 3.75%
CT, NH, DE, ME, VT, DC $25,000 $187.50 $83.33 4.00%
NY and MD $25,000 $192.71 $88.54 4.25%
MA, RI, NJ, PA $50,000 $364.58 $156.25 3.75%
CT, NH, DE, ME, VT, DC $50,000 $375.00 $166.67 4.00%
NY and MD $50,000 $385.42 $177.08 4.25%
Payment examples do not include real estate taxes, homeowners insurance, or other amounts. Santander does not escrow (or charge borrowers for escrow waiver) on home equity lines of credit.

May We Also Suggest?

1Rates:To get a Personal Line of Credit ("Line") with the best Annual Percentage Rate (APR) shown, you must live in MA, RI, CT, NH, NJ, PA, NY, DE, ME, VT or DC and use automatic payment (ePay) from any Santander checking account. If ePay is discontinued, the interest rate will increase by 0.25 percentage points, and your payment will increase. You must also meet our highest credit standards. Ask about higher rates that may be available for applications who do not meet those standards. For new Lines of Credit, your initial APR is based on the U.S. Prime Rate published in the Money Rates table of The Wall Street Journal on the date you sign the credit agreement. Thereafter, your APR may vary monthly based on the U.S. Prime Rate published in the Money Rates table of The Wall Street Journal on the first business day of the month, plus a margin of 4.24% (now 8.24% with ePay for credit qualified applicants). The minimum Line APR is 6.49% and the maximum is 18.00% APR. Fees: The $50 annual fee is assessed in the first month after the account is opened and each following year on the account anniversary date during the draw period. The fee will be waived if you have a Santander Select, Premier, or Santander Premier Plus checking account at the time the fee is assessed and will be reduced to $25 if you have a Preferred checking account. All other accounts will be assessed the standard $50 fee. Draw & Repayment Terms: The Line has a five-year draw period during which you can obtain advances and elect either principal and interest or interest-only payments. Thereafter, no additional advances may be taken and the Line enters its five-year repayment period, during which you must repay both principal and interest. Other Information: Line use is subject to the terms of the Personal Line of Credit Agreement, including terms that permit Lines to be suspended, reduced or terminated in certain circumstances. The minimum Line amount is $5,000 and the maximum is $35,000. All information is accurate as of 3/17/2017 and is subject to change. Lines are subject to approval. 

2Accounts must be in good standing. Applies to net purchases only

* 0% introductory APR for 18 billing cycles on balance transfers made within 90 days of opening your account. After the introductory period, a variable APR for balance transfers from 16.24% to 23.24% based on the Prime Rate and your creditworthiness, with a transaction fee for each balance transfer of either $10 or 3%, whichever is greater. There is no grace period on balance transfers. Also if you take a balance transfer offer, this means that unless your purchase APR is at an introductory or promotional 0% APR, you will pay interest on new purchases from the date made if you do not pay all balances, including the promotional balance transfer, in full by the next payment due date appearing on your statement. Variable APR for purchases from 16.24% to 23.24% based on your creditworthiness when you open your account. Cash advance APR of 25.24%. Minimum finance charge of $1.50. The fee for cash advances is $10 or 5%, whichever is greater. Penalty APR of 30.74%, which may apply indefinitely to your account if you miss payments or otherwise default. The foreign transaction fee is 3% of the gross amount of transactions made in a foreign currency and transactions made in U.S. Dollars that are processed outside the 50 United States, District of Columbia, Puerto Rico, or Santander ATMs in Mexico. Purchases of wire transfers from a non-financial institution of either $10 or 4% of the amount of each transaction, whichever is greater. The annual fee is $49 per year (waived for the first year of the account, and waived in each of the subsequent years on the anniversary date of the account if you maintain a Santander Select or Premier Plus checking account or if you are qualified for a Santander Bank employee checking account). Rates effective as of 04/01/2017. Rates are subject to change. Please see the Terms and Conditions for additional rate, fee, and other cost information.

Accounts must be in good standing. Applies to new net retail purchases only.


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