May 12, 2026 Retail & Consumer Services

A Commercial Mortgage Guide for Gym and Fitness Studio Owners

Buying the premises your gym or fitness studio already trades from is a defining step for any operator. At Ardent Capital Group we speak with fitness owners about this kind of commercial property purchase regularly, so this guide walks through how a lender reads the building, the deposit you can plan for, and how the finance is commonly structured.

Ardent Capital Group is a specialist in commercial mortgages for gym and fitness studio operators across Australia. Our team can help you move from tenant to owner, with clear lending advice on structure and strategy.

Funding capacity: Access finance from $100,000 to $10,000,000+, aligned to your balance sheet and growth plan.
Track record: Over $500,000,000 facilitated in funding across a decade for more than 1,000 borrowers.
National coverage: Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
Delivery: Lender selection, LVR strategy and file management through to settlement.

We arrange a gym property loan for operators across the country, and the right lender makes the difference.

What ownership gives a gym and fitness studio operator

Your member base is local and habit-driven. Drive times, parking and street visibility anchor the business to the exact site. Fit-outs are expensive and immovable, and relocating risks churn. The sector benefits from recurring membership revenue, multi-stream income from classes and PT sublets, and increasingly from corporate wellness and allied health tie-ins. Ownership fixes your occupancy cost, protects your brand’s address and converts repayments into equity.

Main drivers:

Control of the site: Secure ceiling height, floor loading, amenities, acoustic tolerance and trading hours without landlord risk or unexpected rent rises.
Protect sunk fit-out: Floors, rubber, turf, platforms, reformers, racks, mirrors, lighting, saunas and bathrooms are capital you keep working in place.
Operational resilience: Membership subscriptions and class packs support lender serviceability, especially where churn and seasonality are managed.
Asset building: Repayments retire debt on a property your entity owns, with potential to leverage your equity for growth.

Buying may not suit every operator. If your lease has a short runway with relocation likely, the brand is testing a new format, or you would rather hold capital for an equipment refresh or a marketing scale-up, staying flexible can be the stronger call. The decision is a matter of risk, capital and timing, and it is worth mapping before you commit.

How a gym and fitness studio purchase is funded

Deposit and LVR: With lenders that publish a standard-commercial LVR, owner-occupiers can gear to around 80 per cent, so plan for a deposit near 20 per cent, with 30 to 35 per cent on some files or asset types. In selected cases a lender will reach 100 per cent where additional security, such as residential property, supports the position. The majors do not publish an owner-occupier commercial LVR and assess each file on its merits, which is part of why lender selection matters.
Loan term and structure: Terms commonly run 10 to 15 years with the banks and 25 to 30 years with non-bank lenders. Many owners choose principal and interest for steady equity build, or interest only for a defined period to prioritise cash flow during a fit-out or equipment cycle.
Security and serviceability: The property is primary security. Lenders assess business financials, BAS, tax returns and cash flow. They consider membership revenue, class revenue, PT room or sublease income, seasonality, wage costs and occupancy cost coverage, then size the loan to serviceability metrics.
Owner-occupier treatment: Lenders generally view owner-occupied commercial purchases favourably, as you control the tenancy and cash flow and are motivated to maintain the site.

Common holding structures

Many gym operators hold the real estate in a separate entity, such as a company or a trust with a corporate trustee, and lease the premises to the trading business at a commercial rent. A lender reads that inter-entity rent as the serviceability line and takes the property as security, which keeps the asset and the operating risk on separate balance sheets and supports a clean succession or sale later.

Where a self-managed super fund is involved, commercial premises generally qualify as business real property, so an SMSF can hold the building and lease it to the trading entity at market rent, with the finance arranged as a limited recourse borrowing through a custodian (bare) trust. Lenders apply lower LVRs and closer liquidity tests to these files, and setup and ongoing costs are higher. We map and place the lending to suit your structure, then your accountant, and a licensed adviser for an SMSF, confirm the tax, super and ownership specifics.

What a lender looks at

Business financials: Profitability, cash flow stability, BAS and tax returns, add-backs and normalisations that reflect true trading performance.
Serviceability: Interest cover and debt service ratios based on membership subscriptions, class revenue, PT and allied health subleases, with seasonality considered.
Property and valuation: Zoning, ceiling height, floor loading, power, ventilation, parking, acoustic profile, compliance and location catchment.
Deposit and equity position: Cash, retained earnings, equity in other property and director support where appropriate.
Lease and occupancy: Owner-occupier intent, proposed leaseback terms between entities, or existing tenant profile for mixed-use holdings.
Experience and track record: Tenure in operation, churn management, reduced failed membership payments, member acquisition channels and brand strength.
Obligations: Existing debts, ATO position and any outstanding creditor arrangements.

A specialist broker who understands gym revenue, fit-out realities and property classes sharpens lender selection and structure.

An illustrative scenario

This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking might run.

Situation: A Sydney functional training gym with 850 active members, $1.8m annual revenue and a three-by-three lease on a 1,000 sqm warehouse. The landlord indicates a sale price of $3.8m.
Objectives: Lock in site control, keep cash flow stable through an equipment refresh next year, and position for a second location within 18 months.
Options we would map:
- Owner-occupier purchase via a property trust: around 75 to 80 per cent LVR on a standard warehouse asset, deposit funded by retained earnings plus a modest director equity release. Principal and interest for long-term build, or interest only for two years to preserve cash flow during the fit-out.
- SMSF acquisition: considered for tax outcomes and asset protection, with recognition of the lower LVR and liquidity needs, and suitability tied to super balances and contribution strategy.
- Stay renting or relocate: weighed against rising rent, the risk of member disruption and a fresh fit-out cost if the gym moves.

How we would approach it: we would map the ranges, structures and repayments across several lenders with a focus on owner-occupier policy, industrial asset appetite and debt service coverage, then talk through the risk and cash flow profile that fits the plan. The figures above are illustrative, not confirmed outcomes.

Ways we can fund a gym and fitness studio business

Asset finance for gym equipment: Cardio lines, selectorised machines, racks, plates, reformers, Pilates beds, AV systems and access control funded to match useful life.
Fit-out and refurbishment finance: Sprung floors, rubber, acoustic treatment, mirrors, bathroom and shower upgrades, reception and signage arranged as gym fit-out finance alongside or separate to the mortgage.
Working capital loans: Smooth seasonality, marketing campaigns, pre-sale pushes for a new program and short-term staffing ramps, with working capital for a gym sized to the trading cycle.
Business overdraft: Cover timing gaps from EFT membership runs, merchant settlement delays and supplier payments.
Refinancing and debt consolidation: Reset mismatched facilities, free up cash flow and prepare for property purchase or expansion.
Construction and renovation: Add mezzanine floors, treatment rooms or recovery zones, improve HVAC and electrical capacity to suit class density.
Business or premises acquisition finance: Buy a competitor’s member book, take over a neighbouring tenancy for expansion or complete a buyout of a partner.

Owning the premises can stabilise occupancy cost and, over time, leverage your equity to fund equipment refreshes or a second site, while a refinance can consolidate multiple facilities into a cleaner structure.

How Ardent helps gym and fitness studio buyers

Ardent Capital Group structures commercial mortgages for gyms and fitness studios across Australia. We arrange the finance around how you plan to hold the property and how the business will occupy it, with clear advice on lender policy and leaseback. We service Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas, and have helped facilitate over $500,000,000 in funding across a decade for more than 1,000 borrowers. This is the kind of purchase where the structure and the strategy matter as much as the rate, so we give owners clear advice on both, with an eye on the wealth you are building and the years ahead. When you are ready to weigh your options, we would be glad to talk it through.

Questions worth asking

How much deposit do I need to buy a gym property? With lenders that publish a standard-commercial LVR, owner-occupiers can often gear to around 80 per cent, so plan for a deposit near 20 per cent plus costs, with more on some files. The majors assess these purchases case by case rather than publishing a set LVR.

Can I use equity in my home to increase borrowing power for the gym premises? Yes. Many owners use the equity in a residential property to reduce the cash deposit, often improving loan terms at the same time.

Do lenders accept gym revenue as stable serviceability? Yes, provided membership churn is controlled, failed payments are minimised and class or PT sublease income is consistent. Lenders evaluate seasonality and historical retention.

Is an SMSF allowed to buy my gym’s building and lease it back to my company? Commercial premises generally meet business real property rules. An SMSF can hold the property and lease it to your trading entity at market rent, subject to lending limits and fund liquidity.

What property types suit a gym purchase from a lender’s view? Standard industrial warehouses, retail bulky goods showrooms and larger strata industrial units with parking, ceiling height and acoustic tolerance are commonly acceptable.

Owner-occupier or investment structure, which is better for a gym operator? Owner-occupier structures usually attract stronger lender appetite and LVRs. An investment hold with a lease to your trading entity can suit tax and risk settings. The right answer depends on cash flow and long-term plans.

Will the fit-out add to the valuation? Valuers focus on land and building. Some fixed improvements that are part of the building may help value, while movable equipment usually sits outside and is better handled under asset finance.

Written by

Nick Chong

Managing Director, M.AppFin, Dip. Mortgage Mgmt

Nick holds a Bachelor of Agricultural Economics, a Master of Applied Finance and an Advanced Diploma in Financial Planning. He founded Ardent Capital in 2016 after more than a decade in financial planning and mortgage broking. For the past ten years he has led a team of finance specialists, mortgage advisers, brokers and credit analysts, all working to secure optimal outcomes for clients and always acting in their best interests. The team brings both a qualitative and a quantitative approach to every deal.