Start-Up Business Owner Buys Family Home


  • Mitigating factors argued to have only the most recent year of self-employed income in the loan application, rather the average of two years one of which was the start-up year
  • Advising the client on the minimum sale price of existing investment property in order to meet the target purchase price
  • Moving quickly on the discharge of the investment property


Our client is young couple about to start a family. They reached out to us when they were looking to purchase a family home as their “forever home”. The female applicant’s business is just over two years old. To achieve the target purchase price the client had to sell their existing investment property first.


In the first year of the female applicant’s business was not very profitable, being the “start-up” year.
Moreover, the FY22 business financials and tax returns had not been lodged and were still in draft form. This substantially limited the choice of lenders and chance of success in a loan approval.

One further challenge was that the investment property sale had to be timed so that formal approval could be issued in time for the new purchase to settle accordingly.


  • We submitted that the first year had a lot of setup costs and there was a gradual ramp up in revenue into the second year. The lender eventually accepted the most recent year of self-employed income, instead of requiring the average of two years
  • To streamline the process, we completed our own assessment to give the client and the accountant confidence the draft figures would achieve the client’s goals, hence they could lodge the tax return whilst we applied for a loan pre-approval
  • We assisted with calculating the minimum sale price and timing required for the investment property to achieve the client’s target $1.5M purchase price
  • We facilitated the quick discharge of the investment property loan by filling in and submitting the discharge forms and escalating with the outgoing bank
  • The client settled the new dream home purchase at the $1.5M price.