What is it and how does it work?

What is a home loan top up and how does it work?

A top-up is a way to borrow more money on top of your existing home loan, when you need some extra funds. What you borrow that money for is up to you, whether you’re looking to renovate your property, buy a new car or even consolidate some other debts.

What are the benefits?

What are the benefits of a home loan top up?

A home loan top up can be a cost-effective way to borrow if you need to access some extra funds but don’t want to dip into your hard-earned savings or don’t have the cash available. Because the borrowings are a top up on your existing home loan, the interest rate may be lower than that of a credit card or a personal loan.

Eligibility and criteria

Home loan top up eligibility and criteria

A top-up can only be used for a personal purpose such as renovating your home or buying a new car for yourself. It cannot be used for business purposes. To access a home loan top up, your existing loan must:

  • Be a variable rate loan
  • Not have any Lender’s Mortgage Insurance (LMI) on it
  • Have been open for at least six months
  • Have had repayments made on time in the last six months
Accessing a home loan top up

Home loan top up process

Just like any other loan, there are still a few steps you have to take to access a home loan top up. And remember, if you don’t think a home loan top up is for you, you can always apply for another loan independent of your home loan.

Credit assessment

We will likely need to conduct a full credit assessment for a top-up, which involves:

  • Checking that you’re eligible
  • Reviewing your current financial situation
  • Potentially re-valuing the property.


There are also a few fees involved. Fees could include:

  • a $150 top-up fee
  • a property valuation fee if you need a new valuation (charged by the valuer)
  • a Mortgage Stamp Duty on the increased loan amount, depending on the property’s state.


Lastly, with Virgin Money there are some limits you should be aware of:

  • You can top-up once every 12 months
  • Top-up amounts can range from $5,000 to $100,000
  • Top-ups are not available on fixed rate loans.

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