diff --git a/dwave/cloud/config.py b/dwave/cloud/config.py
index 9067215f..87971a4d 100644
--- a/dwave/cloud/config.py
+++ b/dwave/cloud/config.py
@@ -462,6 +462,7 @@ def load_config_from_files(filenames=None):
     config = configparser.ConfigParser(default_section="defaults")
     for filename in filenames:
         try:
+            filename = os.path.expandvars(os.path.expanduser(filename))
             with open(filename, 'r') as f:
                 config.read_file(f, filename)
         except (IOError, OSError):
diff --git a/tests/test_config.py b/tests/test_config.py
index ae915ef5..ed150ae4 100644
--- a/tests/test_config.py
+++ b/tests/test_config.py
@@ -125,9 +125,9 @@ def test_config_file_detection_nonexisting(self):
     def test_config_file_path_expansion(self):
         """Home dir and env vars are expanded when resolving config path."""
 
-        env = {"HOME": "/home/user", "var": "val"}
+        env = {"var": "val"}
         config_file = "~/path/${var}/to/$var/my.conf"
-        expected_path = "/home/user/path/val/to/val/my.conf"
+        expected_path = os.path.expanduser("~/path/val/to/val/my.conf")
         profile = "profile"
 
         conf_content = """