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A home loan top-up lets you borrow additional funds against your existing property without refinancing. Here is when it makes sense and how to apply.
By Jason Given · April 2026 · 4 min read
A home loan top-up — also called a loan increase or equity release — is additional borrowing from your existing lender, secured against the same property. Rather than taking out a separate loan or refinancing, you increase your existing loan balance and draw down the additional funds for a specific purpose.
Top-ups are used to fund home renovations, vehicle purchases, investment property deposits, debt consolidation, or other significant expenses where the borrower has sufficient equity in their property.
The maximum top-up is determined by your lender's LVR limit and your current property value. Most lenders will not allow the combined loan balance to exceed 80% of the property's current value without requiring LMI. If your property has increased in value or you have made significant repayments, your available equity may be larger than you expect.
Example: a property valued at $800,000 with a $450,000 loan balance has $190,000 of usable equity at 80% LVR ($640,000 maximum loan minus $450,000 outstanding). This is the maximum additional amount the lender will release.
The equity calculation for a top-up is: (Property value x 0.80) minus outstanding loan balance. Lendology calculates your usable equity and identifies whether a top-up with your current lender or a refinance to a new lender produces the better outcome.
A top-up with your existing lender is simpler and faster — no new application, no new valuation in many cases, and no discharge or establishment fees. But your existing lender may not offer the most competitive rate for the top-up amount, and they may not approve the top-up if your servicing has changed.
Refinancing to a new lender while simultaneously borrowing the additional amount can produce a better rate on the entire loan, not just the top-up. Lendology compares both options and recommends whichever produces the better net outcome.
A straightforward top-up with your existing lender typically takes 1 to 3 weeks. If a valuation is required, add another week. Lendology manages the process and follows up with the lender to minimise delays.
Yes. Using equity in your primary residence to fund the deposit on an investment property is a common strategy. Lendology structures the equity release to keep the borrowings clean and tax-deductible for the investment component.
Yes. Borrowing more increases your loan balance, which increases your monthly repayment — unless you extend the loan term. Lendology models the new repayment before you proceed so there are no surprises.
Yes. The lender will reassess your income, expenses and serviceability before approving a top-up — even with your existing lender. Lendology reviews your current serviceability position before submitting the request.