Are you a home-owner looking to fund a big purchase or consolidate debt? If so, a home loan top up could be a solution worth considering. Our friendly team of advisors can help you to assess whether a home loan top up is right for you.
Home loan top-ups work by borrowing against the equity you have already built up in your existing property. Top-ups can either be consolidated as part of your existing mortgage or taken out as an additional loan. Top-ups can help you to fund major purchases like renovations, events like weddings or to consolidate and pay off debt. The amount you can borrow is based on the difference between your property’s current market value and the amount you still owe on the mortgage. Depending on the intended use of the top-up, you will typically need to have accrued at least 20% equity in your home to qualify to top-up your loan.
When applying for a mortgage top-up, you can choose between fixed rate loans and floating rate loans. At Personalised Mortgages, our mortgage advisors are experts at guiding people through the process of arranging home loan top-ups. Contact our friendly team to discuss whether topping up your home loan is a good option to meet your financial goals.
Topping up your home loan can be a great option for paying for major renovations to your property. Be aware however, that if your renovations require a building consent, lenders will usually need to see the consent before approving the top-up. Lenders may also require evidence of building contracts and plans, council consent and an up-to-date registered valuation of your property. You can learn more about home loan top-ups for renovations here.
In order to access a home loan top-up, most New Zealand lenders typically require you to have at least 20% equity in an owned-occupied property. This increases to 40% if topping up against an investment property.
To calculate your home’s equity, divide your current mortgage balance by your home’s market value. For example, if your current balance is $200,000 and your home’s market value is $800,000, you have 25 percent equity in the home
Home loan top-ups can be an attractive way to borrow money, because they typically offer lower interest rates than a personal loan or credit card. At Personalised Mortgages we have built long-standing relationships with over 20 of New Zealand’s top lenders, so we are ideally placed to find you home loan top-ups at competitive interest rates.
A top-up is when you borrow money on top of your home loan utilising the existing equity in your home. Top-ups can be consolidated with your existing home loan or taken out as an additional loan.
A home loan top-up allows you to borrow at lower interest rates than if you were to take out a personal loan or credit card. Tapping into your home’s equity with a top-up can help pay for big purchases like renovations, events, or to consolidate and pay off debt.
The amount you can borrow with a home loan top up usually depends on what the top-up is for
How, how much of your home loan you’ve already paid off, your loan to value ratio (LVR), and whether you can afford the repayments once a top-up is added to your existing loan.