The Property Academy Podcast How do you ACTUALLY get a mortgage top-up⎥Ep. 2014
Mar 17, 2025
Clear steps to arrange a mortgage top-up and who you need to talk to. Common uses for extra mortgage funds and what lenders will not allow. How to calculate usable equity and simple bank lending limits. Different loan structures for renovations and what evidence lenders require. Hidden costs like valuations, legal fees, and common risks of borrowing against property.
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Mortgage Top Up Is A Full Lending Application
- A mortgage top-up borrows against increased usable equity in your property.
- You can spend the cash almost anywhere but the application is a full mortgage lending process requiring bank statements and payslips.
How To Work Out Your Usable Equity
- Calculate usable equity by multiplying property value by the bank's LVR limit then subtracting your current mortgage.
- Example: $1,000,000 home at 80% LVR gives $800,000 bank value; minus $500,000 mortgage leaves $300,000 usable equity.
Remember Income Tests And DTI Limits
- Don't assume usable equity is the only limit; you must also pass income affordability tests and Reserve Bank debt-to-income rules.
- Even small top-ups can be blocked by income tests, not just equity constraints.