Your interior design budget will be dictated by a number of factors: How long will you keep the new design? What level of quality are you looking for? Do you plan to redecorate the entire space, or just part of it? What can you afford to spend?

Plan to spend what you can realistically pay for. If you own your home, you may wish to consider a home equity loan to cover the cost of redesigning your space, especially if your redecorating project has the potential to increase the resale value of your home.

To estimate the likelihood of a successful loan application, you will want to calculate your Debt Service Ratio or DSR in advance. This calculation is an estimate of the amount of debt you can service based on your income and your current expenses.

Here’s a quick formula to help determine your DSR:

1. Take your monthly salary (or income);
2. Add to it your expected redecorating cost;
3. Take the total amount (1. plus 2.);
4. Divide amount 3. by amount 1. (your total gross monthly income);

If the result is 45% or less, with everything else being in the right place (your credit history, etc.), there is a good chance that the home equity loan will be considered favorably by your financial institution.