Most business owners assume their first property purchase will take three to six months from start to finish.
That timeline works if you're employed on a salary with two years of payslips. When you own a business, the process starts earlier and moves differently. Understanding the actual sequence of events saves you from starting too late or getting caught between contract dates and finance approval.
Getting your finances in order before you even look at properties
Your first step happens six to twelve months before you start inspecting homes. If you're self-employed or running a business, lenders will want to see two full years of financials, which means two completed tax returns lodged with the ATO. You can't speed this part up by working harder or saving faster.
Consider a business owner who earned strong income in their first year of operation but hadn't yet lodged their second tax return. Even with a 15% deposit saved and consistent revenue, they couldn't proceed with a home loan application until that second return was lodged and processed. The property they wanted went to another buyer during the wait. Starting the conversation with a broker twelve months out would have identified this gap early enough to plan around it.
During this preparation phase, you'll also want to check your borrowing capacity based on how lenders assess business income. Some lenders will average your last two years of taxable income. Others will take the lower of the two years. A few will consider your most recent year if it shows strong growth. Knowing which calculation method applies to you changes how much you can afford.
Understanding what first home buyer support you actually qualify for
Once your financials are in order, you need to determine which schemes and concessions apply to your situation. The First Home Loan Deposit Scheme and Regional First Home Buyer Guarantee both allow you to purchase with a 5% deposit without paying Lenders Mortgage Insurance (LMI), but they have different property price caps and location restrictions.
First home buyer stamp duty concessions vary by state. In New South Wales, you can avoid stamp duty entirely on properties up to a certain threshold, or receive a reduced rate on properties above it. These concessions can save you tens of thousands of dollars, but only if the property you're buying falls within the eligible price range and you meet the residency requirements.
The First Home Super Saver Scheme lets you save through your super fund and withdraw up to $50,000 for a deposit, but you need to have made those contributions at least twelve months before you can access them. If you're a business owner paying yourself dividends rather than salary, this option may not be practical. These details matter when you're deciding how much to save and where to hold it.
Pre-approval timing and what it actually locks in
Pre-approval takes two to three weeks once you submit your application, assuming your documentation is complete. For business owners, that documentation includes tax returns, business financial statements, BAS statements, and sometimes profit and loss reports prepared by your accountant.
Pre-approval gives you a conditional commitment from a lender, usually valid for three to six months. It doesn't lock in your interest rate during that period. If rates rise between pre-approval and settlement, you'll pay the higher rate unless you've locked in a fixed rate at application.
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What pre-approval does give you is certainty around your budget before you sign a contract. In our experience, business owners benefit most from pre-approval because their income assessment is more involved than standard employment. Finding out after you've signed a contract that your business income doesn't meet a lender's criteria creates problems that are difficult to solve under time pressure.
From offer to settlement: the compressed timeline you need to plan for
Once you make an offer on a property, the timeline accelerates. Most contracts in New South Wales allow 30 to 42 days for finance approval and settlement. That sounds like plenty of time until you factor in property valuation delays, additional lender requests for documentation, and the back-and-forth that happens when you're self-employed.
In a scenario where a business owner made an offer on a property in Maroubra with a 35-day settlement, the valuation came back $40,000 below the purchase price. The buyer had to renegotiate the contract price, provide an additional deposit to cover the shortfall, or walk away and forfeit their initial deposit. The renegotiation took eight days, leaving only 27 days to finalise finance. The loan still settled on time, but only because pre-approval was already in place and the broker had flagged the valuation risk before the offer was made.
Settlement day itself is handled by your solicitor or conveyancer. The lender transfers funds, you transfer the balance of your deposit, and ownership changes hands. You don't need to be physically present, but you do need to have building insurance in place from settlement day forward.
Choosing between variable and fixed interest rate options
Your rate structure decision usually happens during the formal application stage, after your offer is accepted. A variable interest rate gives you access to an offset account and typically allows unlimited additional repayments. A fixed interest rate locks in your repayment amount for one to five years but often restricts extra repayments to $10,000 or $20,000 per year.
Business owners often favour offset accounts because income can be irregular. Parking your operating cash flow in an offset reduces the interest you pay without locking those funds away. If you need to withdraw money for business expenses or personal costs, it's immediately available. A redraw facility on a variable loan offers similar flexibility, but some lenders take several days to process redraw requests.
Some lenders offer interest rate discounts for first home buyers, particularly if you're borrowing above a certain threshold or have a deposit larger than 10%. These discounts usually apply to variable rates and can reduce your ongoing repayments by a meaningful amount over the life of the loan.
Call one of our team or book an appointment at a time that works for you. We'll map out your specific timeline based on where your business financials sit right now and what type of property you're planning to buy.
Frequently Asked Questions
How long before buying should I speak to a broker if I'm self-employed?
You should start the conversation six to twelve months before you plan to buy. Lenders require two full years of lodged tax returns for self-employed borrowers, and you can't speed up that timeline once you've found a property you want.
What happens if the property valuation comes in lower than the purchase price?
You'll need to renegotiate the purchase price, increase your deposit to cover the shortfall, or walk away from the contract. This situation is more common in rising markets and can delay settlement if not resolved quickly.
Can I get pre-approval before I have two years of tax returns lodged?
Most lenders won't provide pre-approval to self-employed borrowers without two completed and lodged tax returns. A small number of lenders may consider one year if you have a large deposit, but your options will be limited.
Should I choose a variable or fixed interest rate as a first home buyer?
Variable rates give you access to offset accounts and flexible repayments, which suits business owners with irregular income. Fixed rates lock in your repayment amount but restrict how much extra you can pay off each year.
How long does pre-approval take for a business owner?
Pre-approval typically takes two to three weeks once you submit complete documentation, including tax returns, financial statements, and BAS. It can take longer if the lender requests additional information about your business income.
