Scenario Spotlight: Seasonal income, solid fundamentals, significant LVR – deal or no deal?

Amrit and Priya* are experienced restaurant owners based in Glenelg, South Australia. They’ve run their business for several years and remain hands‑on day to day.

They bought their current home – their first home – eight years ago. Since then, life has changed. They now have two kids, are moving into their early 40s and their needs have shifted too. Space, community and longer-term planning are driving the next move.

Recently, they found what they see as their forever home.

Amrit and Priya own their current property, recently valued at $1 million, and have built up equity over time, although they still carry an existing mortgage.

They plan to keep their existing property as an investment, access its equity and use the cash-out option as a contribution towards the purchase of this forever home.

All up, the lending requirement comes in at around $850,000, putting the position at roughly 85% LVR.

Like many clients at this stage of life – particularly as more move into their 40s and look to settle into a long‑term home – their focus is on securing the right property for the long term. Where it becomes less straightforward is the income.

The business is performing, but like many in hospitality, the income is seasonal: strong during peak periods, quieter at other times.

When assessed on current BAS income, servicing didn’t stack up, particularly at this significant LVR.

Recognising it wasn’t going to fit a traditional bank assessment, their broker looked to structure it a different way and brought the deal to ORDE for a second view.

So, this becomes the real question:

At 85% LVR, and with the borrowers planning to retain their existing property as an investment, does the overall position support the move or is there too much working against it?

What happens next?

* This scenario has been de-identified. Every deal is different, and outcomes will vary based on individual circumstances.