Home Loan Top Up
December 11, 2023 at 10:00 AM
The simple answer is YES! You can use a Mortgage Broker or as we are officially known Financial Advisors for a top up with your bank. Just make sure the Mortgage Broker or Financial Advisor has the ability to apply through that bank on your behalf.
What is a Top Up?
A Top Up is where you increase (top up) your home loan with the bank/ lender which holds your property as security.
The purpose of the increase could be for just about anything - purchasing a car, boat, caravan or renovating your property, consolidating some debt etc..
The bank/ lender may ask more questions depending on the purpose or amount you wish to top up by. Such as if you are renovating a property, is it structural or requires consent. If this is the case then the bank/ lender may want more info such as plans, quotes or the builder contract but if you are wanting to simply replace your roof, then the list of questions or conditions would be less. Same goes for consolidating debt - the bank may look into how much debt is being consolidated, the total amount you are asking for, is this a regular occurence etc..
How do I apply for a Top Up?
As you would with your own bank/ lender, we require you to complete a full application and provide new payslips and bank statements etc..
With that information we would assess your affordability and if you have the equity to increase your home loan.
How do I know if I have the equity for a top up?
Just like your bank/ lender we would complete a desktop valuation at no cost to you. This is different to the valuation you get from your local council or estimates run by websites such as Trademe. The bank and a good mortgage broker would have access to a desktop valuation tool which the banks rely on to lend against.
If the desktop value does not quite value your property enough to top up against, then the next step is order a valuation with a local registered valuer. This will be at your cost however this can conditioned for when we approach your bank for approval so there is no need to get this upfront in most cases.
Do you charge for a top up?
We would charge a small fee for your top up in some cases as there is just as much work for us to apply for a top as there would be for a customer who is buying a property. Long gone are the short form top up applications where little information was required. Today, your bank requires an updated full application, income verfied, account conduct tested, updated values on your property and affordability calculation being completed and more.
Why? Banks/ Lenders pay us a commission based on the value of your top up. For example. if you had an existing $500,000 home loan and wanted $20,000 to buy a new car then we would only receive a commission payment for the $20,000.
This is covered under important information: click here
How do I apply for a top up?
Simply contact us by phone 0800 300 306 or email enquiry@mortgagefield.co.nz to learn more. We will have a quick 15 minute consult before we send our online application to you and other information we require.