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

For many Australian property investors, the prospect of increasing their investment property loan is an attractive one. Perhaps you’re eyeing a lucrative renovation, planning to expand your portfolio, or simply want to take advantage of the equity you’ve built. Whatever your goal, understanding how to increase your investment property loan can be a crucial step in achieving your financial aspirations.

Understanding Increasing Investment Property Loans

Increasing an investment property loan involves borrowing additional funds against the equity in your property. Equity is the difference between your property's current market value and the remaining balance of your mortgage. As of 2026, many Australian investors are leveraging this equity to fund renovations, purchase additional properties, or consolidate debt.

It’s important to understand that increasing your loan isn’t as simple as requesting more money from your lender. Lenders will assess your financial situation, property value, and your ability to repay the increased loan amount.

Current Market Information and Options

In 2026, the Australian property market is experiencing moderate growth, with interest rates for investment loans typically ranging from 6.49% to 12%. Lenders are cautious yet competitive, offering various options for investors looking to increase their loans.

To increase your investment property loan, you generally need to meet certain requirements:

• Equity: You need sufficient equity in your property. Lenders usually allow you to borrow up to 80% of the property’s value.
• Income: Proof of stable income to demonstrate your ability to service the increased loan amount.
• Credit Score: A good credit score to show your creditworthiness.
• Property Valuation: An updated property valuation is often required to assess the current market value.

Steps to Increase Your Investment Property Loan

If you’re considering increasing your investment property loan, here’s a step-by-step guide to help you navigate the process:

1. Assess Your Equity: Calculate your current equity by subtracting your loan balance from the property’s market value. This will give you a clear idea of how much you can potentially borrow.
2. Check Your Credit Score: Ensure your credit score is in good standing. A score of 700 or above is generally considered good by most lenders.
3. Get a Property Valuation: Arrange for a professional valuation to confirm the property’s current market value, which will be essential for your lender's assessment.
4. Review Your Financial Situation: Ensure your income is stable and can support a higher loan repayment. Gather all necessary documentation such as pay slips, tax returns, and existing loan statements.
5. Compare Lenders: Use Esteb and Co’s access to 83+ lenders to compare different loan products. Look for competitive interest rates and favourable terms.
6. Apply for the Loan Increase: Once you’ve chosen a lender, submit your application. Be prepared to provide detailed financial information and undergo a credit assessment.
7. Approval and Settlement: Upon approval, complete the necessary paperwork. The lender will provide the additional funds, and you can begin using them for your investment purposes.

Expert Tips and Considerations

Here are some expert tips to consider when increasing your investment property loan:

• Loan Strategy: Consider a loan strategy that aligns with your investment goals, whether it’s a fixed or variable rate, interest-only, or principal and interest repayments.
• Future Market Trends: Stay informed about future market trends that could impact your property value and interest rates.
• Budget for Rate Increases: Plan your finances in case of future interest rate hikes, ensuring you can still comfortably meet repayments.
• Seek Professional Advice: Consult with a financial advisor or mortgage broker to explore all options and implications thoroughly.
• Exit Strategy: Have a clear exit strategy if market conditions change or your financial situation evolves.

Frequently Asked Questions

1. Can I increase my investment property loan without refinancing? Yes, you can apply for a loan top-up with your existing lender, but it may not always offer the most competitive rates compared to refinancing with a new lender.
2. How do lenders determine how much I can borrow? Lenders assess factors like your equity, income, credit score, and the property’s value to determine your borrowing capacity.
3. What costs are associated with increasing my loan? Costs can include property valuation fees, application fees, and potentially lenders mortgage insurance if your LVR exceeds 80%.
4. How long does the process take? The process can vary but typically takes anywhere from a few weeks to a couple of months, depending on the lender and complexity of your situation.
5. Will increasing my loan affect my credit score? Applying for additional credit can temporarily impact your credit score, but maintaining regular repayments will have a positive long-term effect.
6. Is it a good time to increase my loan in 2026? With moderate market growth and competitive rates, 2026 can be a favourable time, but it’s essential to assess your personal financial situation and market conditions.
7. Can Esteb and Co help me find the best lender? Absolutely, with access to over 83 lenders, Esteb and Co can assist you in finding a loan product that suits your needs and maximises your investment potential.