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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've been reducing your home loan balance for a while, or the value of your home’s gone up, it lets you raise your home loan’s limit to access extra cash – as long as you can afford the additional repayments.

  

Why increase your St.George home loan?

Pay off other debts, at home loan rates

Option to consolidate debts – like your credit card and personal loan – into one increased home loan repayment, on a lower interest rate.

Use your equity to invest

You could increase your home’s value by renovating, buy shares or even pay a deposit on an investment property.

Combine or separate your repayments

Add your new loan amount to your current home loan repayments, or create a separate account on a different loan term.

Purchase at home loan interest rates

Pay for big ticket expenses, like a holiday or new car, then repay the additional funds in the short-term (not the life of the loan).

How do I apply for a St.George home loan increase?

1. Check your loan type 

Home loan increases are available with variable home loans, but not Relocation Loans (bridging loan). You can top up a fixed rate loan by opening a separate loan account.

 

2. Estimate your usable equity

Usable equity = 80% of your home’s estimated market value, minus your current 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

You’ll need some proof of income, like payslips, so we know you’ll be able to afford the extra repayments.

 

4. Improve your repayment history

Before applying, ensure you’re up-to-date with all your repayments, as we’ll take repayment history into account.

 

5. Apply  

Request a call back by choosing ‘increase my current home loan’ from the ‘I want to' drop down option. A home loan expert will call you in the next 2 business days, we may need to make 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 St.George'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 33 30.

Advantage Package Terms & Conditions (PDF 144KB) apply. A $395 annual package fee applies and is payable from a St.George Complete Freedom transaction account. Before deciding to open a St.George Complete Freedom account, read the Terms & Conditions, and consider if the account’s right for you. 

Other fees and costs (PDF 70KB) 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.