CS25156 09/19 ADVT2019
+ Is it best to structure my top-up as an
increase to my existing home loan, or as
a separate loan? Adding to your existing loan
means you can pay it off over a longer period,
whereas having a separate loan allows you to
pay it off sooner.
+ Will the renovations require a building
consent? If so, there’s additional information
TSB will need from you. Let them know what
you’re planning and they’ll help get the right
paperwork together.
+ Are the renovations significant? If they are
and you require a building consent and progress
payments, a building loan may suit you better.
+ Am I covered? Don’t forget to let your
insurance company know that you’re planning
a renovation, to make sure you’re covered if
the unexpected happens.THINGS TO CONSIDER
YH&G + TSB
TOPPINGUPYOUR HOME LOAN
You’llprobablybefamiliar with topping up
yourphone, yourHOP card and your car oil,
buttoppingupyourhome loan is a little bit
different.A top-upmeans borrowing more
ontopofyourexisting home loan, something
that’spossiblewhenthe market value of
yourhomehasincreased, or you’ve created
equitythroughpaying off a portion of your
homeloan– whichallows you to then borrow
against that equity.
Generally, your home loan interest rate will
be lower than a personal loan or credit card
interest rate, so it can be a cost-effective way
to get that extra funding you need.
When considering the value of your top-up,
you’ll want to think about how it impacts you
in the long term. Home improvements can add
value to your property over time, so you could
spread this cost over a longer period.
Alternatively, taking out an additional loan over
a shorter time period will save you interest in
the long run, if you can afford it.
While there are benefi ts to topping up your
home loan, be aware that this will increase
your repayments or the time it takes to pay off
your home loan, so consider if topping up is
right for you.HOW MUCH CAN I BORROW?
The amount you can borrow will depend on
a number of factors, including the equity you
have available in your home and your personal
fi nancial situation. You’ll usually need a
minimum of 20% equity in your home, or more
if it’s an investment property. If you’re thinking
about renovating, talk to one of TSB’s lending
specialists to fi nd out what you need to do and
whether you’re eligible for a home loan top-up.Contact TSB to talk through the steps involved to bring your renovation project to life – we’re here to help.
tsb.co.nz | 0800 872 226If you’re planning on buying a house
with the intention of renovating straight
away, let your bank know. You may be
able to apply for a home loan for the
total amount you need, rather than
trying to top up afterwards.LOOKING TO BUY
A FIXER-UPPER?Witha homeloan top-up, you’ll get a lower interest rate
thanyou’dget from a personal loan or credit card, so it can
I bea cost-effective way to get that extra funding you needt’s offi cial – you’re now a homeowner!
Congratulations for making it onto the
property ladder. If this is your fi rst house
purchase it might not be your dream home
just yet, but with a bit of imagination, Kiwi
ingenuity and elbow grease you can transform
it over time into a home that proudly
showcases your unique style.
If renovating will play an important role in
turning your home into your dream home, you’ll
be looking for ways to fund your
refurbishments (obviously you’re too late to
apply for this season of The Block NZ!). And
the good news is you can often get that little
bit extra you need from your current home loan.