There are two options.

Mortgage top-up

You already have a mortgage and you want to add to the loan from your mortgage lender. You manage your own debt repayment schedule, setting your own repayment amount and timeframe. But if you pay the loan off and want more credit, you have to reapply.

Interest rates – Banks’ floating first mortgage housing rates have averaged 7.9 percent over the past five years. During that time, rates have ranged between a lof of 6.7% and a high of 9.01%.

Fees - Range up to $500 for establishment.

Advantages – Interest rates are a lot lower than other forms of finance because the loan is secured against your house.

Drawbacks – If you default on payments, you risk losing your house.

Worth considering – For renovations and home improvements.

Mortgage as a line of credit

Another option is where your mortgage gives you access to ongoing credit to a set limit. It’s like an overdraft, but because it’s secured against your house, interest rates are lower.

You don’t have to repay the whole loan before you can redraw back up to the limit at any time.

Interest rates – You will be normally be charged a small margin above the standard first mortgage rate.

Fees – A loan establishment fee can cost up to $300.

Advantages – Access to credit at reasonable interest rates. You can choose your own repayment period for the personal finance component of the mortgage.

Drawbacks – The large amounts of money on offer could be so tempting, you’ll stay up to your ears in debt.

Worth considering – For renovations and home improvements or buying an expensive household item.