Buying Property In Perth? 5 Things Self-Employed Borrowers Should Know

Buying a property is an exciting milestone, and if you're self-employed and considering Perth for your home or investment, you're certainly not alone.

Western Australia is home to a thriving community of business owners, contractors and sole traders. According to the Western Australian Government, small businesses account for 97% of all businesses across the state, highlighting the strong entrepreneurial spirit that continues to shape local communities.

At the same time, Perth continues to offer relative value compared to some larger capital cities, making it an attractive option for buyers looking to enter the market or take the next step on their property journey.

Before you start attending inspections and saving listings online, it's worth taking a step back and making sure you're prepared for the journey ahead.

1. Get Clear On Your Budget

One of the first questions many buyers ask is, "How much can I afford?"

If you’re self-employed, understanding your borrowing capacity early can be particularly important, as lenders may assess income differently to a standard PAYG application. Also of note is that with most lenders, the maximum amount you can borrow depends on your documented income so strategies used to minimise taxation can make your earnings look worse on paper.

Your borrowing capacity can be influenced by factors such as income, expenses, business performance and existing financial commitments. Understanding where you stand early can help you focus on properties that align with your goals and circumstances.

A borrowing power calculator can be a useful starting point before speaking with a Home Loan Specialist.

2. Take Time To Explore Different Areas

Perth is home to a diverse range of suburbs, each offering something different depending on your lifestyle and priorities.

For the self-employed, location can be about more than just where you live. It may also influence travel times, access to clients, nearby business hubs or future investment potential.

When purchasing a property, it's important to look beyond the home itself and consider the lifestyle you're hoping to create, and your capacity to earn both now and in the future.

3. Remember The Additional Costs

The purchase price is only one part of the equation. Depending on your circumstances, you may also need to budget for:

• Stamp duty
• Conveyancing and legal fees
• Building and pest inspections
• Ongoing property maintenance

For self-employed borrowers, it's important to consider how upfront property costs may affect business cash flow in addition to personal finances and.

Early understanding of these costs may help you plan more effectively and avoid unexpected surprises along the way.

4. Explore Your Home Loan Options Before Searching For Properties

Many buyers wait until they've found their ideal property before looking into finance.

However, understanding your options early may be especially valuable if you're self-employed.

Different lenders may assess self-employed income, business structures and supporting documentation differently. Knowing the loan products and policies that may be applicable to you as will help you feel more confident when the right opportunity comes along.

For example, if you don’t have your recent year’s tax returns, a discussion with Rate Money Cannington can make you aware of their ability to verify income through bank statements, BAS statements, or an accountant’s declaration. These are known as Alt Doc or Low Doc loans which catering to non-traditional income earners.

Seeking guidance early may also help you better understand what information you'll need when it's time to apply.

5. Think About Your Future Plans

A property purchase isn't just about today. For self-employed Australians, future business plans can be just as important as personal goals when choosing the right property.

Will you need more space in the future? Could the property become an investment later on? Does the location support both your lifestyle and long-term business objectives?

Thinking ahead may help provide greater confidence in your decision.

How Rate Money Cannington May Be Able To Help

At Rate Money Cannington, we understand that no two property journeys are the same, especially for self-employed borrowers.

Buying property in Perth is an exciting step, but preparation can make all the difference.

As a self-employed operator, understanding your borrowing position, planning for additional costs and exploring your finance options early may help you feel more confident when the right opportunity comes along.

If you're thinking about making a move, the team at Rate Money Cannington would love to help you explore your options and take the next step with confidence.

Sources

• Small business facts and statistics - Western Australian Government: https://www.wa.gov.au/service/business-support/small-business-services/small-business-facts-and-statistics

• Median House Prices in Australia (2026): Every Capital City Ranked: https://everstonefinance.com.au/median-house-prices-australia/