Top-up Loan

If an individual already has a home loan (either owner-occupied or investment) and they are in need of some funds to pay off their high-interest credit cards, renovation of your house, or buy a new car. The lenders in Australia are more than happy to help, as the clients can add up the required amount to their total loan and take the cash out for further investments. 

In simple words the lenders allow their clients to borrow the required amount against the equity available in their house. The equity on the property is the current value your property is at and the money that you still owe. For example:

Property Value – $850,000

Remaining Loan Balance – $600,000

Equity – $850,000-$600,000 = $250,000

Existing LVR – 600,000/850,000 = 70%

If you decide to take out $30,000 as a top up the updated LVR will be = 630,000/850,000 = 74%

But make sure the LVR is always below 80% so that you don’t have to pay lender mortgage insurance. (Lenders Mortgage Insurance (LMI) is insurance that a lender takes out to insure itself against the risk of not recovering the outstanding loan balance if you, the borrower, are unable to meet your loan payments and the property is sold for less than the outstanding loan balance.)


  • Home loan interest rates are normally cheaper than other types of credits such as credit cards or personal loans
  • Managing one single liability and repayments can be easier than paying for several different loans. 
  • Applying for top-up is easier than applying for a new loan. 


  • There may be tax implications
  • Taking more debt is always a con
  • Your repayments for your mortgage loan will be higher as this will increase the total loan limit
  • It might take longer to completely pay off your loan.

CEO, Senior Mortgage Broker

Lekha Gurung

Lekha Gurung is an experienced mortgage broker from Sydney who expert in assisting first-home buyers, property investors, refinancing, etc. He has settled more than 300 loans till now. Our Services include First Home Buyers Loans, Investment Loans, Refinancing, Personal Loans, Business Loans, Reverse Mortgage, Credit Default Loan, Low Docs Loan, assistance in property research, and Insurance referral arrangements.

Additionally, Lekha Gurung offers Free Home Loan Consulting and Home Loan Advice. Recognizing the complexities of the mortgage process, these no-cost, personalized consultations are available for free to everyone. Lekha will provide expert guidance tailored to your financial needs, ensuring you make informed decisions in your property financing journey. Simply fill out a form and pick a date to book your Free Session today!

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Active Mortgage and Finance
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Phone: 02 9797 9069, 0425 848 409