Beginner's Guide to Buying a Home Closer to Family

Relocating to be near family brings immediate practical questions about property finance.

If you own a business and you are moving to a different suburb or state to be closer to parents, children, or extended family, your lending profile looks different from that of a salaried employee. Lenders assess business income using tax returns, accountant letters, and BAS statements rather than payslips. The decision to move interstate or to a regional area adds complexity around deposit requirements, loan portability, and whether to sell or retain your current property. You need to understand how lenders assess business income, what deposit is required for your target area, and whether your current home loan structure supports the move.

How Lenders Assess Business Income When You Move

Lenders assess business income by averaging your declared income over two full financial years.

If your business is a sole trader structure, lenders use the taxable income declared on your individual tax returns. For a company or trust, they use the profit and loss statement from the most recent financial year, adjusted for add-backs such as depreciation and director salary. Most ADIs require two consecutive years of trading history, though some non-ADI lenders accept a single year where income is stable and supported by a strong cash position. If you are moving closer to family because you are taking on caring responsibilities or reducing work hours, the lender will assess your capacity based on your projected income, not your historical average. An accountant letter confirming your ongoing income arrangement is often required.

Consider a buyer who operates a marketing consultancy as a sole trader in Sydney and is moving to the Central Coast to be closer to ageing parents. Their taxable income for the past two years is $135,000 and $142,000. The lender calculates their annual income as $138,500 and applies that figure to serviceability. If they plan to reduce their workload to three days a week after the move, the lender will ask for a letter from their accountant confirming the projected income and whether existing client contracts support that figure.

Deposit Requirements When Relocating Between States or Regions

The deposit you need depends on whether you are selling your current home before buying, or retaining it as an investment property.

If you sell first, you release equity that can be used toward the deposit on your next home. In that scenario, the lender assesses the transaction as an owner-occupied purchase, and a deposit of 10 to 20 per cent is typical. If the Australian Government 5% Deposit Scheme applies, you may be able to proceed with a smaller deposit if you meet eligibility criteria. If you are retaining your current property and renting it out, you are taking on a second loan secured by a new property. The lender will assess whether the rental income from the existing property covers the loan repayments and whether your business income supports both loans. In this structure, you typically need a deposit of at least 20 per cent to avoid paying LMI on the new purchase.

State-based stamp duty concessions vary. In NSW, a full stamp duty exemption applies to first home buyers purchasing properties valued up to $800,000, but if you already own a property, that concession is not available. In Queensland, partial stamp duty relief is available on established homes for first home buyers, with a concession of up to $17,350 depending on the property value. If you have previously owned property, you pay the standard rate. In Victoria, stamp duty relief applies only to first home buyers, with a full exemption on properties up to $600,000. If you are moving interstate and have previously owned a home, you should budget for full stamp duty in the new state.

Using Equity From Your Current Property as Deposit

Equity in your existing property can be used as part or all of the deposit for your next purchase, without requiring an immediate sale.

If your current home is valued at $1,200,000 and you owe $650,000, your equity position is $550,000. Lenders will generally allow you to borrow up to 80 per cent of the property value without LMI, which in this case is $960,000. Subtracting the existing loan balance leaves $310,000 in usable equity. That amount can be used as deposit, stamp duty, and settlement costs on the new property. The structure requires a formal valuation of your existing home and a signed purchase contract for the new property. The lender will assess your capacity to service both loans, including rental income from the existing property if it will be tenanted.

A buyer operating a landscaping business in Brisbane is moving to Toowoomba to be closer to their partner's parents who require support. They own a home in Brisbane valued at $950,000 with a loan balance of $520,000. They are purchasing a home in Toowoomba and do not want to sell the Brisbane property. The lender values the Brisbane property at $950,000 and agrees to lend up to 80 per cent, or $760,000. After repaying the existing $520,000 loan, $240,000 in equity is available. This amount covers the deposit and costs on the Toowoomba purchase. The Brisbane property will be rented, and the rental income is included in the serviceability assessment for the new loan.

Variable, Fixed, and Split Rate Options for Relocation Purchases

A variable rate gives you flexibility to make extra repayments and access funds through an offset account.

If you are moving closer to family and expect changes in your income, living costs, or caring responsibilities, a variable rate home loan allows you to adjust your repayments without penalty. Most variable loans include an offset account, which reduces the interest charged by offsetting your savings balance against the loan balance. If you are selling your existing home after settling on the new property, the sale proceeds can be deposited into the offset account while you decide whether to reduce the loan or use the funds elsewhere.

A fixed rate locks in your repayment amount for a set term, typically one to five years. Fixed rates suit buyers who want certainty during a period of transition, such as relocating interstate or taking on new family responsibilities. Most fixed rate products do not allow extra repayments beyond a small annual limit, and early repayment or refinancing during the fixed term may incur break costs.

A split loan combines both structures, with part of the loan on a variable rate and part on a fixed rate. This structure gives you some repayment stability while retaining the flexibility of a variable loan. If you are moving closer to family and your income is variable due to business ownership, a split loan allows you to make extra repayments on the variable portion while keeping a fixed portion for budgeting.

Pre-Approval Before Listing Your Current Property

Pre-approval confirms how much you can borrow and whether your income supports the purchase before you commit to selling.

If you are planning to sell your current home to fund the relocation, obtaining home loan pre-approval before listing gives you confidence in your price range and timing. Pre-approval involves a full assessment of your income, liabilities, and credit history. The lender will issue a conditional approval valid for three to six months, depending on the lender. Pre-approval does not guarantee final approval, but it identifies any issues with your income documentation or borrowing capacity before you enter a contract.

For business owners, pre-approval requires two years of tax returns, recent BAS statements, and a profit and loss statement. If your business income has changed recently, the lender may request an accountant letter confirming current trading conditions. If you are moving to a regional area or interstate, the lender will also confirm the property type, location, and value are acceptable for lending.

When to Speak With a Broker About Relocation Finance

If you are moving to be closer to family and you own a business, need to retain your current property, or are relocating interstate, the lending structure is not standard.

A broker can assess your full position, identify lenders who are comfortable with business income, and structure the application to support both your relocation and your longer-term financial position. If you are unsure whether to sell or hold your current property, a broker can model both scenarios and show you the borrowing capacity, repayment obligations, and tax treatment for each option. If you are moving to a regional area where property values are lower but lending policy is more conservative, a broker can identify which lenders are active in that location and what deposit is required.

Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions