Turning Rose Bay Assets Into Home Loan Borrowing Power

You can usually get a Rose Bay home loan even when your taxable income looks low, if you can prove real cashflow, keep your loan‑to‑value ratio (LVR) modest and present a clean, evidence‑based story to the right lender.

This is especially true for retired, semi‑retired and self‑employed Eastern Suburbs borrowers sitting on multi‑million‑dollar homes or portfolios but showing very little on their tax returns.

A practical safety check: aim to keep total home and investment loan repayments under 30–35% of your after‑tax income when modelled at an interest rate 3% above today’s level.[19]

Turning Rose Bay property and investments into practical, safe borrowing power.

Step 1: Decide what you’re actually trying to fund

Before talking products, get specific this week:

• Upgrading your Rose Bay home?
• Unlocking equity for a weekender or investment? (See /insights/unlocking-rose-bay-equity-weekender-investment)
• Refinancing an existing large loan to cut repayments?

For each goal, jot down three numbers:

1. Property value (e.g. Rose Bay house worth $5m).
2. Existing debt (e.g. $1.2m remaining).
3. New money needed (e.g. $800k top‑up for upgrade costs).

In this example:

• Total debt after the move = $2m
• LVR = $2m ÷ $5m = 40%

At 40% LVR, many lenders are far more relaxed about complex income or low taxable income – but they still have to tick serviceability boxes.

Step 2: Turn your true cashflow into a lender‑friendly story

Low taxable income is common in Woollahra LGA – retirees drawing tax‑free pensions, business owners running lean, or investors living off franking credits.

Lenders don’t lend against the property alone. They want to see reliable income sources that will cover repayments, even when rates rise.

What income can often be used

Different lenders will look at combinations of:

• Account‑based pensions / super pensions – usually counted at 100% if evidenced by pension statements.
• Rental income – typically 70–80% of gross rent after applying a vacancy/expense haircut.
• Dividends and managed fund distributions – often averaged over 2 years and shaded.
• Trust distributions – usable when the trust has stable profits and the structure is clear. (Deep dive: /insights/using-company-trust-investment-income-serviceability-story)
• Business income (if still working) – from company or sole trader financials, often averaged over 2 years.

This week, pull together:

• Last 2 years’ tax returns and notices of assessment
• Super and pension statements
• Rental statements and current leases
• Portfolio / trust distribution statements
• 6–12 months of bank statements

That bundle becomes your serviceability pack.