Increase Home Loan? Here's How to Gain Control (2026)

Are you considering increasing your home loan but unsure of where to start? Whether you're looking to fund a renovation, consolidate debts, or seize a unique investment opportunity, knowing how to navigate the process of increasing your home loan can be daunting. With the right guidance, you can make informed decisions to achieve your financial goals.

Understanding Home Loan Increases

Increasing your home loan, often referred to as refinancing or a home loan top-up, involves borrowing additional funds against the equity you've built in your property. This option can be particularly appealing if you need extra cash for substantial expenses such as home improvements, education, or even a new car. The key is understanding your current financial situation and how much additional borrowing you can realistically manage.

Current Market Rates and Requirements

As of 2026, the Australian home loan market is competitive, with interest rates ranging between 6.49% and 12%. These rates can vary based on lender policies, the amount you wish to borrow, and your financial history.

To qualify for a home loan increase, lenders typically assess several factors, including:

• Your current income and employment stability
• Credit score and financial history
• Existing equity in your property
• Current loan-to-value ratio (LVR)

It's important to note that lenders may also review your financial obligations, such as existing debts and regular expenses, to ensure you can comfortably manage the increased loan repayments.

Lender	Interest Rate Range	Additional Features
Lender A	6.49% - 8.00%	Flexible repayment options
Lender B	7.00% - 9.00%	Offset accounts available
Lender C	8.50% - 12.00%	No early repayment fees

Steps to Increase Your Home Loan

1. Assess Your Financial Situation: Calculate your current equity and determine how much additional borrowing you can afford.
2. Contact Your Lender or Broker: Discuss your needs with your existing lender or reach out to a mortgage broker like Esteb and Co, which has access to over 83 lenders, to explore your options.
3. Submit an Application: Prepare to provide updated financial documents, such as payslips, bank statements, and a detailed budget.
4. Property Valuation: Your lender may require a new property valuation to assess your current equity and LVR.
5. Approval and Settlement: Once approved, review the terms and conditions, sign the necessary documents, and await settlement.

Expert Tips and Considerations

• Shop Around: Don't settle for the first offer. Compare different lenders to find the best rates and terms. Esteb and Co can assist with this by leveraging their extensive lender network.
• Understand Fees: Be aware of potential fees associated with refinancing, such as break costs, valuation fees, and application fees.
• Consider Future Plans: Think about how additional debt will impact your long-term financial goals, especially if interest rates rise.
• Seek Professional Advice: A financial advisor or mortgage broker can offer personalised advice based on your unique situation.

Frequently Asked Questions

1. Can I increase my home loan if I have a bad credit score?
If you have a poor credit history, increasing your home loan might be more challenging. However, some lenders may still consider your application based on other factors like income stability and equity.

2. How much can I increase my home loan by?
The amount you can borrow depends on your property's equity, your income, and your lender's policies. It's typically limited to a percentage of your property's current value.

3. Will increasing my home loan affect my interest rate?
Yes, it could. Refinancing or increasing your loan may result in a different interest rate. It's advisable to compare offers from multiple lenders.

4. How long does the process take?
The process of increasing a home loan can take several weeks, depending on the lender's requirements and the complexity of your financial situation.

5. Is it better to get a personal loan instead of increasing my home loan?
This depends on your circumstances. Personal loans may have higher interest rates but fewer fees, whereas increasing your home loan might offer lower rates but involve additional costs.

6. What is equity, and how is it calculated?
Equity is the difference between your property's current market value and the outstanding balance on your mortgage. It increases as you pay down your loan and as your property's value appreciates.