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A Home Loan Top Up: Why do people need it and what does the process involve?

Home loan top ups, also known as loan increases, are requested by existing home loan borrowers when they need to access additional funds relatively quickly. They can request loan top ups for multiple purposes, including renovations, vehicle purchases, holidays, pursuing further education and consolidating credit card debt. Borrowers prefer to apply for home loan increases as they incur lower interest rates compared to personal or credit card loans.

It is important to note that the purpose of the home loan increase can determine whether it is approved. For example, with Homestar Finance, we do not approve loan increases if the customer has recently received one within the last six months, if it is for structural renovation (which otherwise would be a construction loan), or if they do not fit our servicing criteria. For those who are applying for a loan increase to fund payouts for marital separation, a copy of the Court Request will be required.

The process to apply for a home loan increase is extremely similar to applying for a new mortgage. All existing Homestar Finance borrowers will need fulfil servicing criteria, demonstrate they have sufficient equity as well as good loan repayment history. A valuation of your property will also need to be conducted to accurately determine your Loan to Value ratio. Homestar Finance’s minimum loan increase amount is $10,000 and there is no capped maximum limit- the loan increase amount is dependent on how much equity you have and your current financial circumstances. Homestar Finance offers loan top ups for customers both on variable and fixed interest rates.

Enquire today with Homestar Finance about a home loan top up.

Homestar Finance also assists borrowers with all other types of loan variations, including additional security, consent to secondary mortgages and switching from variable to fixed rate home loans. Enquire to speak with our Loan Specialists about your home loan needs.