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Small business owners, now’s the time to buy

ByLachlan Mirams

If you’re a small business owner or self-employed, you’ve probably just come through the busiest time of year: balancing the books, reviewing the numbers and prepping for your end-of-financial-year reports. 

So, here’s a thought. While you’re already deep in the numbers, this might actually be the ideal time to think about buying a property – whether it’s your first, your next or one that helps build your long-term wealth.

EOFY isn’t just about compliance. It’s also a golden window to reset, plan and take advantage of the financial clarity you’ve just worked so hard to create. 

And the good news is that things have shifted in your favour.

Use those fresh financials

Most lenders want to see your last two years of tax returns and financials when you apply for a loan. Some may accept just one year if the application is strong. But timing is everything.

If you’re applying in June or July, you likely have up-to-date financials either already lodged or in final draft with your accountant. That means you can put your best foot forward, especially if your most recent financial year shows strong performance.

This matters because:

  • Banks assess borrowing power based on your declared income, not what you actually earn after expenses or what’s in your business account.
  • Fresh financials can reflect improved profitability, allowing you to borrow more or access better rates.
  • If last year was rough but this year was better, lenders will take note – especially if your latest numbers are already filed.

EOFY is the one time of year when everything’s clean, current and ready to go. It’s smart to capitalise on that.

Mortgages are better than they used to be

Once upon a time, being self-employed made home loan approval feel like pulling teeth. Banks liked payslips. They wanted to see regular salary deposits. They were wary of anything that looked remotely unpredictable.

That’s changing.

More lenders now offer flexible options tailored to business owners, including:

  • Low-doc or alt-doc loans, where you can provide BAS statements, business account statements or an accountant’s letter instead of full tax returns.
  • One-year financials that are in some cases accepted in lieu of two.
  • Non-bank lenders who specialise in self-employed borrowers, with policies that account for things like retained profits, add-backs or irregular income.
  • And some lenders will also use directors wages and the pay or income they earn for running the business in the 1st place

That said, flexibility can come with a trade-off, such as higher interest rates or different loan conditions. 

That’s why working with a finance broker who understands self-employed finance can make a huge difference. They’ll know which lenders are most business-friendly and can help match your scenario to the right product.

Your goals are clear

Another reason this time of year is a powerful point to think about property is that you’re probably already reflecting on your bigger picture.

Maybe you’ve just looked at cash flow and realised it’s time to invest. Maybe your business has stabilised and you’re ready to secure a family home or start building a property portfolio. Or maybe your accountant has flagged that you’re paying too much tax, and property is part of your long-term wealth strategy.

Whatever the case, now is the moment when your financial goals and your real-world numbers are closest together. That clarity won’t last forever, so if buying has been on your mind, this is the time to act on it.

You have everything the bank needs

It’s always true that the better your paperwork, the smoother your application. If you’re self-employed and planning to buy property, there are a few things you’ve likely just sorted that the bank will want to see.

I’m talking about your tax returns and financials, BAS statements, transaction histories, accountant’s assessments and ATO compliance.

That’s a huge proportion of the legwork done.

You’ve already done the heavy lifting. You’ve closed out a financial year, managed your team or clients, and navigated the ups and downs of running your own show.

So why not use this momentum?

From here, work with a finance broker to understand what specific lenders are looking for and how your personal circumstances align. They can help you navigate the different products on offer and secure the best deal possible.

Having a broker in your corner can provide a strong competitive advantage. They can make the entire process much easier and cleaner than going it alone.

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Lachlan Mirams
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