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What is a home loan increase?

A home loan increase, also known as a top up, is one way to borrow extra money against your current property. If you have enough ‘usable equity’ in your home – and you can afford the additional repayments – it lets you raise your home loan’s limit to access extra money. 

  

Why increase your BankSA home loan?

Consolidate debts, at home loan rates

You could pay off debts – like credit cards and personal loans – and pay a lower rate by bringing them into one increased home loan repayment.

Use your equity for big plans

The extra money can be put towards renovating to increase the value of your home, shares or even a deposit on an investment property.

Combine or separate repayments

Choose a separate account on a different loan term, or simply add your new loan amount to your current home loan repayments.

Buy something at home loan rates

Need a holiday or a new car? Use the extra funds, then increase your extra repayments to cover it in the short-term (rather than the life of the loan).

How do I apply for a BankSA home loan increase?

1. Check eligibility

Home loan increases are available with variable home loans, but not Relocation Loans (bridging loan) or self-managed super funds. You can increase your fixed rate loan by opening another loan account.

 

2. Estimate your usable equity

Usable equity = 80% of your home’s estimated market value, minus your current home loan balance. If your new loan-to-value ratio (LVR) is more than 80%, you may need to pay lenders mortgage insurance.  

 

3. Gather your income documents

Have proof of income, like payslips, at hand so we can check if you can afford to make higher repayments.

 

4. Be up-to-date with repayments

Before applying, ensure your repayment history is in check, as we’ll all that into account.

 

5. We’ll call you for a chat

Request a call back by choosing ‘increase my home loan’ from the ‘I want to' drop down option. A home loan expert will be in touch within 2 business days, and we may need to carry out a valuation of your home.

 

Tell me more

Equity = property market value - loan balance 

The equity in your home is the difference between the market value of your home and your current home loan balance. But you won’t necessarily be able to borrow against all of your equity. 

 

Usable equity = 80% of property market value - loan balance 

If you’re ahead on repayments, or your home’s value has gone up, you may have ‘usable equity’ to allow for a top up. We calculate usable equity as 80% of the value of your property, minus your loan balance. 

 

Example

Let’s say Kim's property is worth $900,000 and he has a $400,000 home loan. We'll calculate 80% of his home's value: 80% of $900,000 is $720,000. We’ll then subtract $400,000 (loan amount) to get Kim’s usable equity of $320,000. 

Eligibility: we’ll also want to be comfortable that borrowers can afford the extra repayments, so we’ll also consider Kim's income, debts, expenses and liabilities. 

Kim applies for a $36,000 home loan increase to buy a new car. He’s approved and now owes $436,000 at home loan interest rates. NOTE: if Kim wants pay off his car in 3 years, he should increase his home loan repayments by $1000 a month plus interest ($36,000 / 3 years = $12,000 per year).


Important information

Home loan increases, also known as top ups, are subject to approval. Terms and conditions are available on request, and credit Criteria, fees and charges apply. Based on BankSA's credit criteria, residential lending is unavailable for borrowers who aren’t Australian residents.

The info on our website is prepared without knowing your personal financial situation. Before you act on this or any advice, please consider if it’s right for you. If you need help, call 13 13 76.

Advantage Package Terms & Conditions (PDF 349KB) apply. A $395 annual package fee applies and is payable from a BankSA Complete Freedom transaction account. Before deciding to open a BankSA Complete Freedom account, read the Terms & Conditions, and consider if the account’s right for you. 

Other fees and costs (PDF 78KB) may apply. Talk with one of our lenders about a potential property valuer fee, or a lending establishment fee when you top up via a separate loan account.