Loan for renovation worth it?

[tcoope11 0]

My home is in a state which requires renovation. I have savings to do it, but is confused whether to spend it all on the renovation or to take a mortgage to do the same. At the same time I am also thinking whether it is worth or not to take a loan for mortgage. My mortgage broker is encouraging me to take it, but I am not convinced. Please share your opinion. Thanks!

[wroomwroom 5]

Renovation loan interest is very high at around ~5%. Home loan interest is ~1% so better to take the home loan rather than the renovation loan.