Private bank mortgages

A private bank mortgage is a mortgage provided by a private bank, usually to high net worth clients, and underwritten on a bespoke basis rather than through standard affordability models. Private banks assess the borrower’s overall wealth, income streams, and asset position, which allows greater flexibility on loan size, interest-only borrowing, and complex ownership structures.

Many private banks link mortgage lending to a wider banking relationship. This can include a requirement to place assets under management (AUM) with the bank, such as investment portfolios, as a condition of lending. In return, borrowers may access preferential pricing, higher loan-to-value tolerance on large loans, or lending against income and asset types that mainstream lenders decline.

Some private banks also offer what is known as dry lending, meaning a private bank mortgage without any AUM requirement. Availability of dry lending varies with market conditions and the strength of the applicant profile, which is why whole-of-market advice is important before committing to a single institution.

Private bank mortgages are commonly used for high-value residential purchases, refinances of unencumbered property, interest-only borrowing into retirement, and lending to expats, foreign nationals, and borrowers using trust or corporate structures.