| Aspect | Details |
|---|---|
| Customer | Marcus Diggles and Sarah Diggles |
| Broker | Manish Rana Magar (expert in complex family financing structures and bridging solutions) |
| Purpose | Joint applicants (brother and sister) seeking to buy an owner-occupied property under bridging finance while waiting for existing property sale. |
| Loan Amount | $1,827,500 |
| Security | $2,670,000 |
| LVR (Term) | 68.45% |
| Interest Rate | Bridging Loan: 9.15% (competitive market rate for bridging finance) Standard Loan: 5.91% variable rate over 30 years |
| Features | Offset account facility, Redraw option for extra repayments, Flexible repayment structure during bridging period |
| Income | Sister: $571,057 Brother: $248,000 Combined Annual Income: $819,057 |
Background
Marcus and Sarah Diggles make an unconventional home-buying team. They had already dealt with the usual skepticism from loved ones: concerns about money, commitment to the deal, and the risks of mixing family with finances. The reality was straightforward: Both were established in their careers, financially stable, and saw joint ownership as a practical path to property investment.
Sarah’s decade-long career as a dental assistant had proven exceptionally lucrative, with consistent overtime and commission work pushing her annual earnings above $570,000. Marcus had built his way up to general management, providing steady income and a methodical approach to their shared financial planning.
Problem
What looked manageable on paper proved challenging in practice:
- Lender Hesitation with Sibling Applications: Banks prefer lending to married couples or established partnerships. Sibling joint applications trigger additional scrutiny around decision-making processes, dispute resolution, and long-term stability.
- Limited Bridging Finance Options: Owner-occupier bridging loans aren’t standard products for most lenders. Along with that, the existing property wasn’t under contract and the available options were narrow.
- Peak Debt Concerns: $1.8 million in combined debt represents serious exposure for any lender. Underwriters needed confidence in both the income sustainability and the exit strategy – specifically that the existing property would sell within the required timeframe.
- Complex Income Assessment: Sarah’s high earnings included substantial overtime and commission components. While this demonstrated strong earning capacity, it also required careful documentation to satisfy lenders’ income verification requirements.
Solutions
Home Loan Experts Mortgage Broker Manish Rana approached the challenge systematically, recognising that success required both technical expertise and strategic lender selection:
- Targeted Lender Research: Manish identified a lender that had suitable bridging-finance products for owner-occupier purchases and experience with non-traditional applicant structures. The lender’s 9.15% bridging rate was competitive, and its underwriting team had the flexibility to assess complex scenarios.
- Strategic Income Documentation: Rather than attempting to downplay Sarah’s variable income components, Manish presented her 10-year earnings history as evidence of consistent high performance. The documentation showed not irregular income, but exceptional earning capacity with sustainable patterns.
- Efficient Process Management: Recognising that timing was critical in bridging finance, Manish streamlined the application process, ensuring all documentation was comprehensive from the outset and maintaining regular communication with the lender throughout assessment.
- Structured Solution Design: The dual-loan structure provided both immediate bridging capacity and long-term sustainability. Capitalising interest on the bridging component reduced immediate servicing pressure, while the standard variable-rate loan ensured affordability post-sale.
The result was approval for a complex transaction that many brokers would have considered too difficult to pursue, delivered within timeframes that allowed the siblings to secure their chosen property.
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