Skip to main content Skip to main navigation Skip to accessibility page Skip to search input


What is a home loan increase?

A home loan increase, also known as a top up, lets you borrow against your current property, as long as you have enough ‘usable equity’ in your home, and you can afford to make the additional repayments. Most people use the extra money – which is at home loan interest rates – to pay off other debts, renovate or buy assets like shares or a new car.


Why increase your Bank of Melbourne home loan?

Combining debts, at home loan rates

You could pool your debts (e.g. personal loans and credit cards) into one home loan repayment with a lower interest rate.

Investing using your equity

Access extra money to buy shares, increase your property’s value through a renovation, or put down a deposit on an investment property.

Option to separate your repayments

Set up a separate account on a different loan term, or simply combine your new loan amount with your current loan repayments.

Buying, at home loan rates

Spend your extra cash on a new car, holiday or whatever you need (remembering to repay the purchase in the short-term).

How should I apply for a 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 usable equity

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


3. Have proof of income at hand

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


4. Check your repayment history

Be up-to-date with your repayments before applying, as approval can depend on your repayment history.


5. Talk to us   

Request a call back by selecting ‘increase my home loan’ from the ‘I want to' menu. A home loan expert will call you within 2 business days, and we may need to value 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. 



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).

The Detail

Conditions, credit criteria, fees and charges apply. Based on Bank of Melbourne’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change. Before making a decision, it’s best to read the terms and conditions.

Loan Accounts – Charges for specific services and accounts (PDF 33KB)

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.

Home loan increases, also known as top ups, are subject to approval.

Other fees and costs (PDF 33KB) 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.