Increase Your Loan – Relief When You Need It Most (2026)

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Imagine this: you took out a loan a couple of years ago, and now, due to changing life circumstances or new opportunities, you find yourself needing more funds. Whether it's for home renovations, debt consolidation, or an unexpected expense, you're asking yourself, "Can I increase my existing loan?" You're not alone in this quest, and the good news is, options are available to you. Let's explore how you can navigate this financial path.

Understanding Increasing an Existing Loan

Increasing a loan you already have, often referred to as a loan top-up or increase, allows you to borrow additional funds on top of your existing loan balance. This option is particularly appealing if you're in good standing with your lender and have been diligently making your repayments. It's a common choice for homeowners looking to tap into their property's equity, but it can also apply to personal loans, car loans, and more.

Current Loan Market Overview and Options

As of 2026, the Australian financial landscape offers a variety of options for increasing a loan. Interest rates are crucial when considering a loan top-up, as they can significantly affect your repayments. Currently, the average interest rates range from 6.49% to 12% for personal loans, while home loan rates are more competitive, ranging from 4.75% to 6.5%, depending on your lender and financial profile.

Lenders typically require you to have a good credit score, stable income, and equity in your home if it's a mortgage you're looking to increase. With over 83 lenders on our Esteb and Co panel, you're likely to find a solution tailored to your needs.

Loan Type	Interest Rate Range	Typical Requirements
Personal Loan	6.49% - 12%	Good credit score, stable income
Home Loan	4.75% - 6.5%	Equity in property, good credit history
Car Loan	5.5% - 9%	Vehicle equity, regular income

Steps to Increase Your Existing Loan

Here’s a straightforward guide to help you through the process of increasing your loan:

1. Evaluate Your Financial Situation: Review your income, expenses, and credit score to ensure you're in a position to handle increased repayments.
2. Determine Your Equity: If you're looking to increase a home loan, calculate the equity available in your property. This is crucial for mortgage top-ups.
3. Contact Your Lender: Reach out to your current lender and inquire about the possibility of a loan increase. They will guide you through their specific process.
4. Consider Alternative Lenders: If your current lender's terms aren't favourable, explore options with other lenders. Esteb and Co's panel of 83+ lenders can provide diverse options.
5. Submit an Application: Prepare and submit an application detailing your financial status and the reason for the loan increase.
6. Review and Agree to Terms: Once approved, carefully review the terms and conditions. Ensure the new repayment terms are manageable.

Expert Tips and Considerations

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

• Assess Your Need: Only borrow what you need. Over-borrowing can lead to financial strain.
• Review Interest Rates: With fluctuating rates, ensure you secure the most competitive rate available.
• Consider Loan Insurance: Protect yourself with loan insurance, especially if your financial situation might change unexpectedly.
• Understand Fees: Be aware of any additional fees associated with increasing your loan, such as application or exit fees.
• Seek Professional Advice: Consult with a mortgage broker from Esteb and Co to explore your best options and negotiate favourable terms.

Frequently Asked Questions

Here are some common questions about increasing a loan:

1. Can I increase my loan without refinancing?
   Yes, many lenders offer top-ups without the need to refinance, though the terms may vary.
2. How does increasing my loan affect my credit score?
   Initially, there may be a slight dip due to the credit inquiry, but consistent repayments can improve your score over time.
3. Is there a limit to how much I can increase my loan?
   The limit is typically based on your equity, creditworthiness, and lender policies.
4. What if my lender denies my request?
   Consider improving your financial profile or exploring options with other lenders, such as those on Esteb and Co's panel.
5. Are there any tax implications?
   Depending on the use of funds, there may be tax implications, such as deductibility for investment purposes. Consult a tax professional for advice.

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