diff --git a/pre_commit/commands/init_templatedir.py b/pre_commit/commands/init_templatedir.py
index 8fe20fdc..6e8df18c 100644
--- a/pre_commit/commands/init_templatedir.py
+++ b/pre_commit/commands/init_templatedir.py
@@ -18,7 +18,7 @@ def init_templatedir(config_file, store, directory, hook_type):
     except CalledProcessError:
         configured_path = None
     else:
-        configured_path = os.path.realpath(out.strip())
+        configured_path = os.path.realpath(os.path.expanduser(out.strip()))
     dest = os.path.realpath(directory)
     if configured_path != dest:
         logger.warning('`init.templateDir` not set to the target directory')
diff --git a/tests/commands/init_templatedir_test.py b/tests/commands/init_templatedir_test.py
index 9b5c7486..b94de99a 100644
--- a/tests/commands/init_templatedir_test.py
+++ b/tests/commands/init_templatedir_test.py
@@ -1,5 +1,8 @@
+import os.path
 import subprocess
 
+import mock
+
 import pre_commit.constants as C
 from pre_commit.commands.init_templatedir import init_templatedir
 from pre_commit.envcontext import envcontext
@@ -61,3 +64,18 @@ def test_init_templatedir_not_set(tmpdir, store, cap_out):
     assert lines[1] == (
         '[WARNING] `init.templateDir` not set to the target directory'
     )
+
+
+def test_init_templatedir_expanduser(tmpdir, tempdir_factory, store, cap_out):
+    target = str(tmpdir.join('tmpl'))
+    tmp_git_dir = git_dir(tempdir_factory)
+    with cwd(tmp_git_dir):
+        cmd_output('git', 'config', 'init.templateDir', '~/templatedir')
+        with mock.patch.object(os.path, 'expanduser', return_value=target):
+            init_templatedir(
+                C.CONFIG_FILE, store, target, hook_type='pre-commit',
+            )
+
+    lines = cap_out.get().splitlines()
+    assert len(lines) == 1
+    assert lines[0].startswith('pre-commit installed at')