How a home loan top-up works
A home loan top-up, which lenders also call a loan increase, adds new borrowing to the home loan you already have, secured by the same property and repaid at your home loan rate. It is the cheapest and fastest way to access equity because nothing is discharged or refinanced, and it is only available on some loans. This guide covers how much you can add, the published minimums, which loans qualify, how it compares with redraw and refinancing, and what to send the lender.
- A top-up borrows new money; a redraw takes back extra repayments you already made. Check redraw first, it needs no application
- The ceiling is usually 80% LVR on the new total (Westpac, ME, Unloan); minimums are published at IMB ($10,000) and ME ($20,000)
- Variable loans only at most lenders: fixed loans mean break costs (CommBank, IMB, ME) or a separate account (Westpac); bridging and SMSF trustee loans excluded at Westpac
- Cheaper to set up than a refinance (no discharge, no new loan; Westpac covers the first valuation) but assessed like a new loan on the full balance
- Set the term to the purpose: spread $30,000 over 20 years and the interest can exceed a five-year personal loan (Unloan’s example)
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.
What is a home loan top-up?
Unloan's definition is the clearest: a top-up is when you apply to increase your current loan balance, and the extra funds are added to your existing home loan and repaid over time at your home loan interest rate. Westpac and Bankwest call the same thing a loan increase. The lender revalues the property, checks that the new total fits under its LVR line and that you can service it, and deposits the difference. Because the original loan stays in place, there is no discharge fee, no new loan establishment and no settlement, which is why Unloan publishes that a top-up is generally faster and cheaper than refinancing.
Top-up, redraw, refinance or supplementary loan?
| Option | What it does | Application | When it suits |
|---|---|---|---|
| Redraw | Takes back extra repayments you have already made above the minimum | None; it is your money, if the loan allows redraw | First stop for any amount you have overpaid |
| Top-up (loan increase) | Adds new borrowing to the existing loan balance | Credit assessment and usually a valuation | Variable loan, happy with the lender, purpose within their policy |
| Supplementary or split loan | A second loan account against the same property; Westpac and ANZ both publish this route | Credit assessment and usually a valuation | Keeping the original loan untouched, or a fixed loan you cannot top up; separating investment borrowing |
| Cash-out refinance | A bigger loan with a new lender pays out the old one | Full application, discharge and settlement | A better rate elsewhere, or your lender declined the increase |
How much can you top up by?
The published ceiling is 80% of the property's current value for the total loan. Westpac: most banks look for an LVR of 80% of the current value, so usable equity is 80% of the value minus the current balance, and beyond 80% may be possible with lenders mortgage insurance. ME publishes up to 80% of the property value. Unloan publishes that most lenders cap top-ups at 80% and that a top-up pushing the LVR above 80% may need LMI. On a $750,000 home with $400,000 owing, CommBank's published example, that is a $200,000 ceiling. The floor is published at IMB, where the minimum top-up is $10,000, and ME, where it is $20,000. The home equity calculator gives your figure at 80% and 90%.
Equity sets the ceiling; serviceability sets what you actually get. The lender assesses the whole new balance at a buffered rate against your current income, expenses and other debts, and Westpac publishes that it takes repayment history into account. A borrower with $200,000 of usable equity and no room in their budget gets nothing.
Which loans cannot be topped up?
Fixed-rate loans, at most lenders. CommBank publishes that customers on a fixed or guaranteed interest rate cannot increase the loan without breaking the contract, which triggers a break cost; IMB and ME publish the same. Westpac takes a different approach and opens a separate loan account for an increase on a fixed loan. Westpac also excludes bridging loans and loans in the name of a trustee, such as SMSF loans, and ME excludes its StandardME product. Loans with a pending settlement or limit increase, and loans with a delinquency history, are excluded from most variations. If your loan is fixed, a supplementary loan alongside it is the usual answer, and the fixed rate ending guide covers timing an increase to the end of the term.
What do lenders publish on top-ups?
Checked against each lender's published page on 20 September 2026; "Not published" means the page does not state it. Policies change without notice, so confirm before relying on them.
| Lender | Minimum | Ceiling | Loans excluded | Valuation and fees | Other published terms |
|---|---|---|---|---|---|
| CommBank | Not published | Usable equity at 80% ($750,000 home, $400,000 owing, $200,000) | Fixed and guaranteed-rate loans (break cost) | LMI may apply by amount and valuation | Top up online or with a Home Lending Specialist; some loans restrict extra repayments |
| Westpac | Not published | 80% of current value; beyond with LMI | Bridging loans; trustee (SMSF) loans; fixed loans get a separate account | First valuation covered | Needs updated income, savings, liabilities, assets; repayment history considered; investors eligible; top-up can sit in the offset |
| ANZ | Varies by loan type | LVR determines eligibility | Variable loans only, subject to credit approval | Fees and charges apply | Supplementary Loan alternative; call back in 1 to 3 business days |
| Bankwest | Not published | Depends on equity | Subject to existing lending criteria | One standard valuation free; one-off application fee may apply by product | Term can stay the same or be reset; enquire in the app |
| IMB | $10,000 | Not published | Fixed loans (break cost) | Valuation may be required, fee may apply | — |
| ME Bank | $20,000 | Up to 80% of property value | Fixed-rate loans; StandardME loans | Valuation may be required, fees may apply | No business purposes; apply through your broker if broker-originated |
| Unloan | Not published | Most lenders cap at 80%; above may need LMI | Not published | No fees of its own; government fees may apply | Repaid over the remaining term; publishes the redraw and refinance comparison |
| NAB | Not published | Usable equity at 80% ($400,000 home, $220,000 owing, $100,000) | Not published | Valuation on request; equity check in the app | — |
What do you need to apply?
Westpac's published list is the standard one: updated income, savings, liabilities (other loans) and assets, plus a current property valuation. In practice that means recent payslips or, if self-employed, tax returns and notices of assessment; statements for any credit cards, car loans and buy-now-pay-later accounts; and the purpose of the funds with any quotes or debt statements the lender wants. Existing customers can usually start in the app: CommBank publishes an online top-up path, Bankwest an in-app enquiry, and NAB an in-app equity check. If a broker set up the original loan, ME publishes that you can go back through them, which is generally the fastest route because they hold your file.
The term is the decision
A top-up is cheap per year and expensive per decade. Unloan's published comparison: $30,000 at 6% p.a. over 20 years costs roughly $21,600 in interest, while the same amount at 10% p.a. over 5 years costs about $8,250, so the personal loan costs less overall despite the higher rate. The fix is not to avoid the top-up but to set the term to the purpose: ask for the increase on a shorter term, put it in a separate split you repay quickly, or park it in an offset as Westpac describes so interest only accrues on what you draw. A broker will tell you which lenders allow which of those before you apply. Your Finance Guide refers you to one licensed broker partner for that conversation; we do not lend or assess applications ourselves.
Equity and refinancing guides
The other routes, the costs and the calculators.
Home loan top-up FAQs
Is it possible to get a top up on a home loan?
Is a top up loan a good idea?
Is it hard to get a top up on your mortgage?
What salary do you need for a $500,000 loan?
How much can I top up my home loan by?
Does a top-up reset my loan term?
Top-up or redraw?
How long does a top-up take?
Increase your loan without the long-term trap
Tell us the amount and what it is for, and we refer you to one licensed broker partner who checks your usable equity, compares a top-up against a split loan and a refinance on total cost, and sets the term to the purpose. Free for borrowers, no obligation.