Rankings
Best Credit Cards for Home Improvements in Canada
Renovation spending usually records as a general purchase rather than a bonus category, so the card that pays the same rate everywhere is the one to use for a large home-improvement bill. The SimplyCash Preferred Card from American Express records $516 in net annual rewards on our example profile.
Which credit card is best for home improvements?
The SimplyCash Preferred Card from American Express and the Neo World Elite Mastercard – Gas & Grocery record the highest net annual rewards among the cash-back cards we track, at $516 and $439 on our example profile.
| Card | Annual fee | First-year value | Net annual rewards |
|---|---|---|---|
| TopSimplyCash Preferred Card from American Express | $120 | $663 | $516 |
| Neo World Elite Mastercard – Gas & Grocery | $149 | $439 | $439 |
| BMO CashBack World Elite Mastercard | $139 | $1,049 | $430 |
| Scotia Momentum Visa Infinite + | $120 | $676 | $400 |
| Capital One Quicksilver World Elite Mastercard | $0 | $792 | $396 |
WalletReturn example spending of $2,000/month: groceries $500, dining $200, gas $150, transit $80, travel $100, recurring bills $200, entertainment $100, drugstore $40, online $300, other $330.
Building materials, appliances, furniture and contractor invoices usually record as general merchandise or a category of their own, which is why a card with one flat rate tends to beat a card whose high rate is confined to groceries, gas or dining.
Put it into practiceFind My CardHow much cash back does a renovation earn?
$5,000 earns $50 at 1% back; $20,000 earns $200 at 1% and $600 at 3%.
| Purchase | At 1% back | At 2% back | At 3% back |
|---|---|---|---|
| Top$2,000 | $20 | $40 | $60 |
| $5,000 | $50 | $100 | $150 |
| $10,000 | $100 | $200 | $300 |
| $20,000 | $200 | $400 | $600 |
For a flat rate that multiply-and-add is the whole calculation. Add a welcome bonus where the purchase helps meet an offer’s minimum spend, and check the qualifying period first.
A category rate pays only if the merchant records in that category, and the top category rates in our catalogue are capped, so one large project can push past the cap into the base rate.
Will a contractor take a credit card?
Many do not, and some of those who do add a charge for card payment. Ask before you count on the reward.
A 2% card-payment charge on a $10,000 project is $200: twice what a 1% card pays back, and the same as a 2% card. Confirm the charge before deciding how to pay.
Retailers that sell the materials do take cards, and purchase protection on some cards covers eligible items bought that way. Where we record that benefit for a card, the limit and its conditions are on the card page.
What if the balance will be carried for months?
Interest costs more than the reward: $10,000 carried for a year at a typical rewards-card rate of 21.99% costs about $2,199 before any payment.
| Card | Purchase rate | Annual fee | Interest on $1,000, one year |
|---|---|---|---|
| TopScotiabank Platinum American Express | 9.99% | $399 | $100 |
| Desjardins Flexi Visa | 10.9% | $0 | $109 |
| MBNA True Line Gold Mastercard | 10.99% | $39 | $110 |
| Desjardins Odyssey Visa Infinite Privilege | 11.9% | $395 | $119 |
| TD Low Rate Visa | 12.9% | $25 | $129 |
Compare that with the cash back the same purchase earns, then with the purchase rate on a lower-rate card. On a project financed over many months the card’s rate decides the cost far more than its reward rate does.
Interest is normally charged on a daily balance, so the figure above is a simple estimate rather than a statement projection.
How do I check these against my own renovation?
Enter the amount you expect to spend in Find My Card: the yearly totals re-run on your numbers rather than on our example profile.
WalletReturn example spending of $2,000/month: groceries $500, dining $200, gas $150, transit $80, travel $100, recurring bills $200, entertainment $100, drugstore $40, online $300, other $330.
The figures here come from the same engine as the card pages, and the same earn rules apply to every card. Affiliate relationships never change an estimate or the order of a ranking.
Keep reading
RankingsBest Credit Cards for Seniors in CanadaThe Scotiabank American Express records no annual fee and no income requirement, and the Scotiabank Gold American Express adds no foreign transaction fee for spending in US dollars. Neither asks for the household income a premium travel card does.
RankingsBest Credit Cards in CanadaThe 149 Canadian credit cards we track, ranked by what they’re worth in dollars in year one. Top pick right now: TD First Class Travel Visa Infinite Card at $1,251.
RankingsBest Credit Cards for Wedding Expenses in CanadaThe BMO CashBack World Elite Mastercard records $1,049 of first-year value on our example profile, and the Capital One Quicksilver World Elite Mastercard records $792. A wedding is a one-time spend, so an offer’s minimum spend matters more here than an ongoing rate.
RewardsHow Much Cash Back Can You Earn in Canada?A 1% card returns $240 a year on $2,000 a month of spending. The highest first-year value we track is the BMO CashBack World Elite Mastercard at $1,049, including its welcome offer.
Official sources and further reading
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value