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Prestige property finance: financing a high-value home in Australia

Christian Tucker
4 days ago
6 min read

Insights from AGFB · Checked 2 October 2026 · About 6 minutes

In brief

  • Many lenders lower the maximum loan-to-value ratio (LVR) as the loan size rises, and large loans often need more senior approval.

  • One-off and architect-designed homes can be hard to value, which can change the deposit you need.

  • Income from a business, trust, bonuses, investments or overseas is often discounted, so lender choice matters.

  • Work out the loan structure, stamp duty and auction timing before you bid.

How do lenders treat larger loans?

Each lender sets its own thresholds for larger loans, and above them the rules usually tighten. A lender may lend 80% or more on a mid-priced home but cap a larger loan at a lower LVR, and some set limits by postcode or property type.

Bigger applications also get closer scrutiny. Credit staff work within approval limits, so a large loan may need a senior credit manager's sign-off, which can add time. Expect detailed questions about your assets, your debts and the source of your deposit.

As a hypothetical example, an 80% LVR on a $3,000,000 purchase means a $2,400,000 loan and a $600,000 deposit. If the lender's limit for that loan size were 70%, you would need a $900,000 deposit, before duty and costs.

Lenders mortgage insurance on bigger loans

Lenders mortgage insurance (LMI) is usually charged when you borrow more than 80% of the property's value. It protects the lender, not you.

Insurers and lenders set their own limits. One major insurer's published guide caps total insured lending to any one borrower at $5 million, and lenders often set much lower loan limits at higher LVRs. In practice, many high-value purchases need a deposit of 20% or more.

Why can one-off homes be hard to value?

Valuers mostly rely on recent sales of similar homes. An architect-designed house, a large block, a heritage home or one with unusual features may have few true comparisons, so valuers tend to be cautious, and bespoke finishes can add less value than they cost.

Lenders usually set the LVR on the lower of the price and their valuation, so a low valuation means a bigger contribution from you. APRA's guidance says valuers should be chosen by a lender's risk area, not its sales staff, and that the need for specialist valuation increases with risk.

You can't choose the valuer, but you can give them plans, renovation details and comparable sales. Ask early whether the lender accepts the property as security and can complete a full valuation before you commit.

How is complex income assessed?

Many buyers at this level earn in ways a payslip doesn't capture: business income through a company or trust, bonuses, or rental, investment or overseas income.

APRA's guidance says prudent lenders discount most non-salary income by at least 20%, including bonuses, commissions, rental and other investment income. Lenders often discount overseas income too, and some accept only certain currencies.

Buying personally, jointly or through a trust can affect duty, land tax and lender choice, so speak with your accountant first. If you are not an Australian citizen, check whether the foreign investment rules apply to you. Foreign persons, including temporary residents, generally can't buy an established home during the temporary ban that began on 1 April 2025, and states can charge surcharge duty, such as 9% in NSW.

Structuring the loan

An offset account can reduce interest while keeping cash available, though some lenders charge for it through a higher rate, fees or both. A split lets you fix part and keep part variable, or keep borrowing for different purposes separate.

An interest-only period can ease cash flow for a time. APRA expects owner-occupier interest-only loans to have a sound, documented reason and a limited term, and repayments rise when the period ends, with more interest paid over the life of the loan.

Buying before you sell

Bridging finance covers the gap between buying your next home and selling your current one. The lender assesses the peak debt while you own both and the end debt after the sale, as our bridging loans page explains.

Stamp duty at higher prices

Each state and territory sets its own transfer (stamp) duty, and the rate generally climbs with the price. At this level duty can reach six figures, on top of the deposit.

In NSW, for example, the 2026–27 general rate is $5.50 per $100 of value above $1,290,000. Above $3,870,000, residential property attracts premium property duty of $7 per $100 on the excess, so duty on a $4,000,000 home is about $203,237 before any surcharge.

Other states use different rates, thresholds and concessions, so check your state revenue office.

Private banking or a broker?

Major banks run private banking divisions for clients with higher incomes or assets, usually with entry criteria. They can offer a dedicated relationship manager, a view of your whole relationship and sometimes more flexible pricing or policy, which suits buyers who value one point of contact.

The trade-off is that a private bank can only offer its own loans. A broker compares lenders on their panel, including some whose policies suit unusual income or properties, and must act in your best interests on a home loan. No panel covers every lender, and AGFB's Credit Guide explains our panel and how we are paid.

Some buyers compare their private bank's written offer with what a broker can find.

Discretion and timing at auction

Auction sales generally have no cooling-off period and aren't subject to finance or a building inspection. You can expect to pay a deposit on the day, such as 10% of the price.

Pre-approval helps, but it isn't a guarantee and usually lasts three to six months. For an unusual or high-value home, ask whether the lender can value the property and confirm it as security before auction day, and line up any bridging first.

Discretion matters at this level too. Credit applications are recorded on your credit report, so a targeted approach to one or two suitable lenders can beat applying widely. A broker can often test a scenario with a lender before anything is lodged.

A practical checklist

  • Confirm the maximum LVR and loan limits for your loan size, postcode and property type.

  • Budget your deposit, duty and costs against a cautious valuation, not just the price.

  • Gather income evidence: business financials, trust records and bonus history.

  • Ask whether a full valuation can be done before auction or exchange.

  • Decide on offset, splits and any interest-only period up front.

  • If you are selling, map the peak debt, end debt and sale timing.

  • Keep a buffer for rate rises and holding costs.

Common questions

Do prestige home loans cost more?

Not necessarily. Pricing depends on the lender, loan size, LVR and your wider relationship, and larger loans may qualify for discounts. Compare the comparison rate and fees in writing.

What if the valuation comes in below the price?

The lender will usually base the LVR on the lower valuation, so you may need a bigger deposit or a smaller loan. Some lenders will review a valuation if you can show strong comparable sales, but that isn't assured.

Try the numbers

Use our Borrowing Capacity calculator for an indicative figure, and the Property Fees calculator to estimate stamp duty and purchase costs in your state. If you are unsure where to start, Find Your Next Step is a short guided set of questions that points you to the right tool or enquiry. Our home loans page explains how Christian compares lenders and manages the application.

Talk it through

If you are planning a high-value purchase, Christian can look at your income, deposit and timing, and outline the lenders that may fit.

Sources

General information only. This article does not take into account your objectives, financial situation or needs. Your full financial situation and requirements must be considered before any offer or acceptance of a loan product. It is not tax or legal advice; speak with your accountant or adviser. All lending is subject to the lender's assessment and criteria, and fees and charges apply. Figures and rules are correct as at the checked date shown and can change.

Avantgarde Financial Brokerage Pty Ltd, Corporate Credit Representative 580346, authorised under Australian Credit Licence 389328 held by Connective Credit Services Pty Ltd.

BUYING AT THE TOP END?

Larger loans have their own lender rules. See how Christian handles prestige home loans, then tell him what you are planning. No credit check to enquire. Christian replies the same business day.

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