Borrow More on Your Loan? Discover Options Fast (2026)

Imagine this: you've had a home loan for a few years now, and your financial circumstances have changed. Perhaps you're eyeing that dream renovation, or maybe you want to consolidate some high-interest debt. The big question on your mind is: can you borrow more money on your existing loan? Understanding your options can help you make informed decisions that align with your financial goals.

Understanding Borrowing More on an Existing Loan

Borrowing more on an existing loan, often referred to as a "loan top-up" or "equity release," is a process that allows you to access additional funds by increasing your current mortgage. This is typically done by leveraging the equity in your property, which is the difference between the current market value of your home and the outstanding balance on your mortgage. Australian homeowners often consider this option to fund renovations, investments, or consolidate debts.

Current Rates, Requirements, and Options

In 2026, interest rates in Australia for home loan top-ups range between 6.49% and 12%, depending on your financial profile, the lender, and the type of loan product you choose. It's crucial to understand that borrowing additional funds will impact your monthly repayments and the total interest paid over the life of the loan.

Eligibility for a loan top-up generally requires:

• Good credit score (typically above 650)
• Stable income and employment history
• At least 20% equity in your property
• Meeting the lender’s serviceability criteria, which assesses your ability to repay the loan

With access to over 83+ lenders, Esteb and Co can assist in finding a loan top-up option that suits your needs. Options may include refinancing with your current lender, switching to a new lender, or accessing additional features like an offset account or redraw facility.

How to Borrow More on Your Existing Loan

Here's a step-by-step guide to help you navigate borrowing more on your existing loan:

1. Assess Your Financial Situation: Determine your current financial standing, including income, expenses, and credit score.
2. Calculate Your Home Equity: Use a property valuation to estimate your home's current market value and calculate your equity.
3. Research Loan Options: Compare different lenders and products. Consider engaging a mortgage broker like Esteb and Co for expert advice and access to a wide range of lenders.
4. Prepare Documentation: Gather necessary documents such as proof of income, bank statements, and identification.
5. Apply for the Loan Top-Up: Submit your application with the chosen lender. Be prepared for a credit check and property appraisal.
6. Review and Sign the Loan Agreement: Once approved, review the terms and conditions carefully before signing.
7. Manage Your New Loan: Keep track of your repayments and stay informed about interest rate changes.

Expert Tips and Considerations

Here are some expert tips to consider when borrowing more on your existing loan:

• Understand the Costs: Beyond interest rates, consider any fees associated with increasing your loan, such as application fees or lenders mortgage insurance.
• Consider Future Financial Goals: Ensure that the additional borrowing aligns with your long-term financial objectives.
• Stay Informed: Keep abreast of market trends and interest rates, which can impact your repayments.
• Consult Professionals: Engage a mortgage broker from Esteb and Co to help navigate the complexities and find the best deal.
• Plan for the Unexpected: Have a financial buffer or contingency plan in place for unforeseen circumstances.

Frequently Asked Questions

• Can I top up my loan with any lender?
  While it's possible to top up with your current lender, it's wise to compare offers from other lenders, as they might offer better rates or terms.
• What if my credit score isn’t perfect?
  A less-than-ideal credit score might limit your options, but some lenders specialise in higher-risk borrowers. Speak with a mortgage broker to explore these options.
• How much can I borrow with a loan top-up?
  The amount you can borrow depends on your equity, income, and the lender's criteria. Typically, you can borrow up to 80% of your property’s value.
• Will my interest rate change?
  It depends on your loan terms. Fixed-rate loans will maintain the same rate until the end of the term, while variable rates may fluctuate.
• Is refinancing a better option?
  Refinancing could be beneficial if it offers better terms or rates. However, consider the costs associated with refinancing, such as exit fees.
• Can I use the extra funds for any purpose?
  Generally, yes. However, some lenders may have restrictions, so it's crucial to clarify the purpose during your application process.
• What documentation do I need?
  Typically, you'll need proof of income, identification, and a record of expenses. Lenders may request additional documents based on your application.