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South Yarra runs from the Yarra down to Toorak Road, mixing grand period homes with a very large apartment market along Chapel Street and the station precinct. It is expensive at both ends and busy in between.
South Yarra has one of Melbourne’s largest apartment markets outside the CBD, and the restrictions that come with density apply. A number of lenders reduce maximum loan to value ratios in the postcode, concentration limits are frequently reached in the larger developments, and compact stock falls below minimum size thresholds.
The houses are a different world entirely. Substantial period homes at prices that put them firmly into high value lending, with tighter ratios, specialist credit assessment and a narrower field of lenders comfortable at those amounts.
Buyers here often have complex income too, with company structures, investment income and bonus-weighted remuneration common. How lenders assess that varies enormously and it is frequently the deciding factor in what can be borrowed.
Postcode restrictions, concentration limits and size thresholds all apply to much of the stock.
Period homes at prices that trigger tighter ratios and specialist assessment.
Company structures, bonuses and investment income. Assessment differs hugely between lenders.
Whatever stage you are at, there is a path through it. Pick the one that sounds like you.
With some lenders, yes, particularly for apartments. Reduced maximum loan to value ratios are applied by a number of lenders given the volume of apartment stock. Houses are generally not affected. Since policies differ, your required deposit can vary considerably by lender.
Conservatively and inconsistently. Some lenders use only half or eighty per cent of a bonus and require two years of consistency; others take a fuller view. Share-based remuneration is treated differently again. If a significant part of your income is variable, lender selection is the biggest single factor in your capacity.
Possibly, but not with every lender. Postcode restrictions, building concentration limits and apartment size all bear on it. Larger apartments in smaller buildings have the best prospects. Compact stock in large towers commonly requires twenty or thirty per cent.
At South Yarra house prices, many lenders reduce their maximum ratio, so thirty per cent is a realistic planning figure though some will still consider eighty per cent for strong applicants. Given the values involved, the difference between lenders amounts to a very large sum.
Book a free consultation and we will walk you through your options, what you can borrow, and what it will cost.
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Lydian Financial Services Victoria
Suite 1/103 Grimshaw Street, Greensborough VIC 3088, Australia
Level 12, 15 Collins Street Melbourne VIC 3000, Australia
Copyright © LYDIAN FINANCIAL SERVICES PTY LTD 2026. All Right Reserved.