An extra loan given on top of an existing home loan, against the same property, usually at a rate close to the home loan rate.
How it works and what to check
Lenders offer top-ups to borrowers with a good repayment record, up to the property's value less the outstanding loan, within their own limits. The money can often be used for any purpose.
The tax treatment depends on how the money is used. Only use for buying, building or repairing a home qualifies for home loan interest deductions, under the rules that apply to you.
Common questions
Is a top-up loan cheaper than a personal loan?
Usually, because it is secured on the home.
Can I get a top-up with a balance transfer?
Many lenders offer a top-up when you move your loan to them.