If you’ve owned your home for a few years, chances are you’ve built up some equity—especially if property values have risen or you've been steadily paying down your loan. A mortgage top-up allows you to borrow against that equity to fund things like renovations, debt consolidation, a new car, or even a family holiday.
Here’s how it works, and how a mortgage adviser, like us at LifeDirect Mortgages, can help.
What is a Mortgage Top-Up?
A mortgage top-up is when you increase your existing home loan by borrowing more from your lender. Instead of taking out a separate personal loan—which usually comes with a higher interest rate—you’re simply adding to your mortgage balance and using your home as security.
This is a popular option for Kiwis wanting to:
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Renovate or upgrade their home
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Consolidate higher-interest debt (like credit cards or car loans)
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Cover education or medical expenses
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Help with a business venture
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Fund major purchases
How Does a Top-Up Work?
It’s not automatic—you’ll need to go through an application process with your lender. They’ll reassess your financial situation to make sure you can afford the higher loan amount. This includes:
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Your current income and expenses
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Your existing home loan balance
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The value of your property (usually confirmed with a registered valuation or desktop estimate)
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Your credit history and overall financial position
Most banks will let you borrow up to 80% of your home’s value (sometimes more with lender’s mortgage insurance or special exemptions). If your property has increased in value or you've paid down a chunk of your loan, a top-up might be well within reach.
Why Use a Mortgage Broker for a Top-Up?
At LifeDirect, we’re not just here for first-home buyers—we also help Kiwis make smart decisions at every stage of the home ownership journey.
Here’s how we can help with your top-up:
- Compare lenders: Different banks have different policies. Some are more flexible than others when it comes to top-ups. We’ll help you find the best option.
- Structure your loan: We can help you decide whether to split your top-up into a separate loan (with its own term and repayment schedule) or combine it with your existing loan.
- Make the paperwork easy: We’ll handle the back-and-forth with the bank, make sure your application is strong, and help you avoid common pitfalls.
- Tailored advice: A top-up might not be the right solution for everyone. We'll run the numbers and show you other options if it makes more financial sense.
What You’ll Need to Get Started
To assess whether a top-up is right for you, we’ll usually need:
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Your latest mortgage statement
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Proof of income (like payslips or business accounts)
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An idea of how much you want to borrow and why
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A current property value estimate or valuation
We’ll talk you through everything, including interest rate impacts, loan term adjustments, and how repayments will change.
Thinking About a Top-Up? Let’s Chat.
Life changes—and so should your mortgage. Whether you’re planning a big project or just want to make smarter use of your equity, a top-up could be the right move. Our LifeDirect mortgage advisers can help you explore your options and guide you every step of the way.
