May 19, 2026 Medical & Allied Health

What Goes Into a Psychology Practice Commercial Mortgage

Buying the consulting rooms your psychology practice already works from is a defining step for any principal. At Ardent Capital Group we speak with practice owners about this kind of commercial property purchase regularly, so this guide explains how a lender reads an office-grade consulting suite, what deposit to plan for, and how the finance is commonly structured.

Ardent Capital Group is a specialist in commercial mortgages for psychology practice owners across Australia. Our team can help you move from tenant to owner, and give you clear lending advice on structure and strategy.

Funding range: Access finance from $100,000 to $10,000,000+, tailored to solo, group and multi-site practices.
Track record: Over $500,000,000 in funding facilitated across more than a decade for 1,000+ borrowers.
National coverage: Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
Sector depth: Psychology, counselling and allied health premises including strata suites, converted dwellings and purpose-built rooms.

Reasons to own your premises

Owning rooms suits many psychology practices because the clinical model depends on the space. You invest heavily in soundproofing, acoustic doors, white-noise systems, compliant reception and private circulation. Patient flows are tied to a known address near GP referrers, schools, NDIS providers and transport. A stable, quiet, confidential environment supports long bookings and recurring attendances, which protects revenue. Mortgage repayments build equity in a tangible asset rather than paying a landlord, and you control subletting of additional rooms to peer clinicians if your roster shifts.

Main drivers:

Control over fit-out and privacy: Acoustic treatment, room sizes, discreet entries and compliant amenities set once and maintained for clinical quality.
Location-driven referrals: Proximity to GP clinics, paediatricians, psychiatrists, schools and community providers anchors your client pipeline.
Roster efficiency: Multiple rooms used across staggered rosters increase billable hours per square metre when you set the layout.
Asset building with predictable costs: Repayments fix a core cost and accumulate equity on your balance sheet.
Retention and brand: Stable rooms help keep clinicians and reduce the churn that unsettles clients.

Buying may not suit where your lease horizon is short, a relocation is already planned, or capital is better deployed into hiring senior clinicians, marketing, digital record platforms and systems. The decision belongs to you based on your pipeline, stage and appetite for ownership.

How the finance works for a psychology practice

Deposit and LVR: A psychology consulting suite values much like an office or professional suite, with light clinical fit-out, so as standard commercial security it gears up to around 80 per cent, which means a deposit near 20 to 30 per cent. Where a lender recognises psychologists as a professional or healthcare borrower, some will fund up to 100 per cent of the purchase price on the rooms alone, with no additional security taken over your home. Which lenders extend that recognition to psychology varies, and identifying them is the work a specialist broker does.

Loan term and structure: Terms commonly run 10 to 15 years with a bank and 25 to 30 years with a non-bank lender. Structures can be principal and interest for steady amortisation, or interest only for defined periods where cash flow priorities favour working capital.

Security and serviceability: The property is the primary security. Lenders assess your business financials, serviceability on projected repayments, clinician utilisation, billing mix across Medicare Better Access, private, EAP and NDIS, and existing obligations.

Owner-occupier treatment: Lenders generally view an owner-occupier purchase favourably. Pricing and LVRs often reflect the lower risk of a trading practice occupying its own rooms with a clear pre-commitment to lease.

How the purchase is usually structured

Many psychology practice owners hold the rooms in a separate entity, such as a company or a family trust, which then leases them to the trading practice at a commercial rent. A lender reads that inter-entity rent as the serviceability line, keeps the property separate from trading risk, and the arrangement gives flexibility if you later bring in partners or sublet rooms to associates. We arrange the finance around the holding structure you already use or intend to use.

Some owners look at holding the rooms through a self-managed super fund. Commercial consulting rooms generally meet the business real property test, so an SMSF can acquire them under a limited recourse borrowing arrangement and lease them to your practice at market rent under a complying lease, typically geared 65 to 75 per cent with a liquidity buffer and personal guarantees still required. Ardent arranges the finance around your set-up; your accountant and SMSF adviser confirm the tax, super and ownership detail before anything is locked in.

What underwriters focus on

Business financials: Two to three years of tax returns, BAS and management accounts, showing fee revenue, clinician split arrangements, payroll, super and ATO position.
Serviceability: EBITDA, add-backs, session utilisation by room, average fee per consult, cancellation rates, referral sources and pipeline stability.
Property and valuation: Zoning for medical or commercial use, access and parking, proximity to referrers, building services, acoustic qualities and the valuer's as-is or as-if-complete position if fit-out works are planned.
Deposit and equity: Cash on hand, retained profits, and the ability to leverage your equity in residential or other commercial property where appropriate.
Lease and occupancy: If buying as owner-occupier, a pre-commitment lease from the trading entity. If investment, current tenancy profile and lease terms matter.
Credit profile: Director credit history, conduct on existing facilities and any arrears.

A specialist broker who works with psychology and allied health purchases every week can present these details clearly to the lenders that suit the profession.

A worked example

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

Practice profile: Melbourne group practice, principal plus six clinicians, mixed private and Medicare billing, current lease expiry in nine months, rooms at capacity.
Objective: Secure 160 to 220 square metres near existing GP referrers, set the acoustic spec once, and create room to add two clinicians within twelve months.
Options weighed:
- Strata medical suite near the hospital precinct: higher price per square metre, strong valuation depth, immediate occupancy after light works.
- Converted freestanding dwelling on a commercial street: more control and on-site parking, planning and acoustic works required, potential valuation sensitivity.
- Off-the-plan consulting suite: lower deposit staged now, delivery in 12 to 18 months, continue renting until completion.
Structures considered: Property held by a corporate trustee of a family trust leasing to the trading company; an SMSF with a limited recourse borrowing arrangement; a direct individual purchase with a formal lease to the practice.
Funding paths modelled:
- Standard commercial to 80 per cent as owner-occupier using business serviceability, with repayments modelled against the current rent the practice stops paying.
- A dedicated fit-out facility, drawn upon settlement to complete acoustic works and furniture.
- An interest-only period across the ramp-up while the two new clinicians build their books.

How we would approach it: we would map the ranges, structures and repayments across each option, and the decision would remain with the client. The figures above are illustrative, not confirmed outcomes, and each path shows different cash flow, timing and equity build.

Beyond the mortgage: psychology practice finance

Fit-out, furniture and technology finance: Acoustic doors, sound-masking systems, therapy furniture, secure storage, reception technology and telehealth setups, funded through psychology practice equipment finance so the depreciating kit stays off the property security.
Fit-out and refurbishment finance: Dedicated facilities for partitions, acoustic treatment, DDA-compliant amenities and reception upgrades aligned to your floor plan.
Working capital: Short to medium term working capital for a psychology practice to bridge clinician onboarding, marketing cycles and the timing of Medicare and EAP payments.
Business overdraft: Flexible limit for day-to-day timing differences across Medicare claims, insurer remittances and private payments.
Refinancing and debt consolidation: Reset pricing, tidy legacy facilities and consolidate equipment and fit-out debt into a clearer structure.
Construction and renovation: Funding for conversions of suitable dwellings to consulting rooms, or for larger refurbishments in existing suites.
Business or premises acquisition finance: Finance to buy into an existing practice, buy out a partner, or acquire additional rooms in the same building.

Owning the premises can also support future lending by freeing equity as the loan amortises, and a refinance can consolidate facilities into a clearer structure.

Working with a psychology practice finance specialist

Ardent Capital Group specialises in commercial mortgages for psychology practice owners. We arrange and structure finance around how you intend to hold and occupy the property, and we set the lending to match your practice model. Our team services Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas. We have helped facilitate over $500,000,000 in funding over a decade for over 1,000 borrowers. If you want clear options and optimal financial outcomes, talk to us.

The structure matters as much as the rate, and our psychology practice property loan specialists build it around your situation.

Common questions

How much deposit does a psychology practice typically need to buy rooms? A consulting suite values much like an office, so as standard commercial it gears up to around 80 per cent, which means a deposit near 20 to 30 per cent. Where a lender recognises psychologists as a healthcare borrower, the deposit can be lower again.

Can my SMSF buy the rooms and lease them to my practice? Commercial consulting rooms generally meet the business real property definition, and an SMSF can hold them and lease them at market rent under a complying lease, geared around 65 to 75 per cent, noting the trade-offs around liquidity and borrowing rules.

Is owner-occupier pricing better than investment for consulting rooms? Lenders generally treat an owner-occupier purchase favourably and may allow a higher LVR, reflecting the stability of a trading practice occupying its own rooms.

Will lenders count subcontractor psychologist revenue in serviceability? They assess the stability of your contractor base, utilisation, fee-split agreements, historical revenue, referral diversity and how quickly rooms can be reallocated if a contractor leaves.

Can the fit-out be financed alongside the property purchase? Yes, some lenders include the fit-out where works occur with the purchase and are captured in an as-if-complete valuation, or we use a separate fit-out facility aligned to your programme.

What property types work best for a psychology practice? Strata suites with good acoustic separation, commercial offices with solid cores and parking, or converted dwellings where zoning, access and privacy can be met.

What if I expect to move within two to three years? You may hold off buying, or target a property that can be leased easily to other allied health providers later; the call depends on pipeline visibility, costs and exit options.

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.