WHAT IS A TOP-UP MORTGAGE LOAN?
To ‘top-up’ your home loan means that you gain access to additional funds, leveraging off your home’s equity. Equity is the difference between what your home is worth and what you still owe on it.
Opting for a home loan top-up is usually more cost-effective than obtaining a different type of loan since home loans typically come with lower interest rates compared to credit cards and personal loans.
Choosing to top up your current home loan eliminates the need for a separate loan, saving you both time and the hassle of additional paperwork.
Curious about your eligibility for a home loan top-up? Our team can help.
HOUSING LOAN TOP-UP: FREQUENTLY ASKED QUESTIONS
Eligibility criteria can vary among lenders, but typically, you need to have an existing mortgage, a good repayment history, and sufficient equity in your home to be eligible for a top-up home loan.
We will work with you to determine the best possible outcome for a top-up loan, considering the following factors:
We will work with you to determine the best possible outcome for a top-up loan, considering the following factors:
- Does your current home loan allow for top-ups?
- How much usable equity does your home have?
- Your financial situation
Although approval times can vary, at Rarebreed we work hard to secure your top-up home loan for you as soon as possible.
Typically, it can take a few weeks, depending on your lender’s processing times and the completeness of your application. When you choose Rarebreed, we'll make sure your application is complete with all the required documents to speed things up.
Typically, it can take a few weeks, depending on your lender’s processing times and the completeness of your application. When you choose Rarebreed, we'll make sure your application is complete with all the required documents to speed things up.
Lots of people use a top up mortgage for home improvements.
However, you can use the funds from a top-up home loan for various purposes, including home renovations, education expenses, debt consolidation, car repayments or any other financial need.
However, you can use the funds from a top-up home loan for various purposes, including home renovations, education expenses, debt consolidation, car repayments or any other financial need.
Top-up home loans generally offer lower interest rates compared to personal loans or credit cards because they are secured against your home’s equity.
The main benefits include lower interest rates, simplified paperwork, and the convenience of not needing a separate loan.
The amount you can borrow depends on factors like your home's current value, the outstanding balance on your mortgage, and the lender's policies. You can typically borrow a percentage of your home's equity.
Interest rates for top-up home loans can vary, but they are usually lower than personal loan rates. They may be fixed or variable, depending on your lender.
You will generally need documents such as income proof, property documents, and bank statements. Your lender will provide you with a specific list. We can help you with organising and consolidating these documents.
If your home's value has increased, it may result in a higher top-up loan amount. Some lenders may require a revaluation to determine the new equity.
To assess your eligibility or to apply, you can reach out to our team of mortgage experts. We will guide you through the application process, provide you with the necessary forms, and assist you at every step.
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