How Credit Expertise Secured A Luxury Property Loan

A Carefully Planned Luxury Property Purchase

When James and Eleanor Johnson began planning their next home purchase, they weren’t starting from scratch.

They had been working with Home Loan Experts since 2014, and over the years, senior mortgage broker Romy Dhungana had supported them through multiple loan decisions as their property needs evolved. This purchase represented the next stage in a carefully planned journey, rather than a one-off transaction.

With three children and established careers, James and Eleanor were looking for a home they could settle into, renovate gradually, and eventually simplify as they approached retirement. The decision was deliberate, striking a balance between lifestyle, family needs, and long-term financial strategy.

While their financial position was strong, the scale of the purchase and the structure required meant this would not be a straightforward home loan.

What Was Standing In Their Way

Despite being strong borrowers overall, James and Eleanor faced several obstacles that made lenders cautious.

A LVR Limit On Luxury Property

The purchase price placed the home firmly in the luxury category, where many lenders apply stricter rules regardless of income or asset position. Standard policy limits capped borrowing at a lower 70% Loan-to-Value Ratio (LVR), and the required loan exceeded those limits.

Property Valuation Concerns

The initial assessment flagged superficial cracking and an unusual block configuration as negative attributes. While neither issue was structural, automated risk models treated them conservatively, which reduced the property’s risk rating and limited borrowing flexibility.

Complex Income Structures

In addition to high base salaries and bonuses, both James and Eleanor received restricted stock units (RSUs). Some of this income was paid in foreign currency. Many lenders either exclude this type of income entirely or apply heavy discounts due to volatility and currency risk.

Household Expenses Appeared High On Paper

The private education costs for three children were substantial. Although these expenses were planned for and supported by surplus assets, some lenders viewed them as a long-term servicing risk with little room for nuance.

Individually, none of these issues was insurmountable. Together, they created enough friction for lenders to hesitate.

That uncertainty left them stuck.

Why They Continued Working With Home Loan Experts

James and Eleanor returned to Home Loan Experts because of the trust built over time.

Having worked with Romy over the years, they knew their situation would be assessed with full context. They needed guidance from an expert who understood how this luxury property purchase would fit into their long-term plans.

They sought advice from someone who understood how this purchase would fit into their broader property journey and long-term plans.

Rather than starting from a blank slate, they wanted a strategy informed by history, experience, and a clear understanding of future goals.

The Expertise: How The Loan Was Structured

Romy approached the application with a deep understanding of the clients’ financial position, risk profile, and long-term objectives.

Each element of the application was addressed deliberately.

Addressing The Property Risk

Rather than accepting the initial valuation at face value, Romy reviewed the flagged issues in detail. Independent information showed the cracking was cosmetic and non-structural. The block configuration, initially treated as a negative, was reframed in the context of location, buyer demand, and comparable sales. This supported a formal valuation challenge, resulting in a revised assessment and an improved risk rating.

Structuring The Loan To Match Future Plans

Because James and Eleanor intended to renovate gradually over the first 12 to 18 months, Romy recommended an initial interest-only period paired with an offset account. This wasn’t about minimising repayments indefinitely. It was a deliberate strategy to preserve cash flow during renovations while keeping excess funds accessible and working efficiently.

Conservative But Fair Approach To Income Assessment

Instead of excluding stock-based income, Romy assessed it using a conservative methodology. Historical vesting patterns were analysed, foreign currency exposure was appropriately shaded, and assumptions were clearly documented. This allowed the income to be included without overstating serviceability or creating surprises during credit review.

Managing Education Expenses With Evidence

Private education costs were not ignored. Instead, Romy demonstrated that these expenses were already provisioned through surplus assets specifically allocated for education. With clear documentation, these costs were treated differently in the servicing conversation, reducing their impact on borrowing capacity.

Positioning the long-term exit strategy

Romy also outlined the clients’ intention to increase repayments once renovations were complete and eventually downsize later in life. This showed a realistic and well-considered plan to reduce debt over time, which helped offset the higher initial loan size.

Throughout the process, expectations were set early. Timelines, documentation requirements, and potential conditions were discussed upfront so the clients always knew where they stood.

The Outcome: What Changed

The loan was approved with a structure that supported their immediate purchase and long-term plans.

James and Eleanor acknowledged that this approval was not just about one transaction, but about continuing a well-considered property journey with confidence. The loan provided flexibility during renovations, a pathway to reduce debt over time, and certainty around future options.

What began as early hesitation ended with clarity, control, and momentum.

Your Broker For Life

Property goals evolve. As portfolios grow, lending becomes more nuanced.

Working with mortgage experts who understand your history, your goals, and how each decision connects to the next makes a difference, especially when complexity increases.

Speak with us today. Call us on 1300 889 743 or submit an enquiry online.