May 3, 2026 Medical & Allied Health

What Specialist Practice Owners Should Know About Commercial Property Finance

Buying the rooms your specialist practice already works from is a defining step for any clinician. At Ardent Capital Group we speak with medical practice owners about this kind of commercial property purchase regularly, so this guide walks through how a lender assesses specialist rooms, the deposit and structure options, and what actually moves the number.

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

Funding capacity: Ardent can help you access finance from $100K to $10M+, aligned to property type and cash flow.
Proven track record: We have helped facilitate over $500M in funding over a decade for more than 1,000 borrowers.
National reach: We service Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
Medical-sector focus: We understand medical risk, referral patterns, compliance requirements and fit-out realities.

The case for owning your specialist practice premises

Specialist practices invest heavily in rooms that suit clinical care and accreditation. Radiation shielding for imaging, lead-lined walls, HEPA-grade HVAC, piped gases, procedure room compliance, medical IT, sterile zones and high-spec patient areas are sunk costs tied to a site. Location holds referral patterns, patient familiarity and parking access, which all feed list stability and revenue resilience. The sector has shown durability through cycles, supported by a mix of Medicare item numbers, private billing and insured procedures. Ownership channels repayments into equity in a scarce asset class such as strata medical suites near hospitals or freehold with purpose-built rooms.

Main drivers for ownership:

Control of tenure and fit-out: Secure long leases to yourself at market rent, plan refurbishments without landlord friction.
Asset building from rent equivalents: Redirect a significant rent line into principal reduction and capital growth potential.
Patient and referrer stickiness: Keep continuity near hospitals, day surgeries and imaging hubs that feed your lists.
Operational efficiency: Configure rooms, waiting areas and procedure spaces to your workflow without compromise.
Tax and wealth planning options: Hold in an entity that receives commercial rent from your trading practice.

Buying may not suit every plan. If you expect to relocate within two to three years, if the hospital campus is moving, if you are testing a new subspecialty location, or if capital is better directed to core equipment upgrades or a second site, renting can preserve flexibility. The decision sits with you.

We arrange the medical rooms property loan end to end, from lender selection through to settlement.

Financing a specialist practice: how it works

Deposit and LVR: Owner-occupier loan-to-value ratios commonly reach up to 80 per cent, so a deposit around 20 per cent from cash, practice retained earnings or equity in your home. Recognised medical professions can access up to 100 per cent of the purchase price on the practice property alone, without additional security, through specialist healthcare lenders such as BOQ Specialist and Medfin. LVR is measured against the lender's valuation, not the price.
Loan term and structure: Terms commonly run 15 to 25 years with banks, extending toward 25 to 30 years with some non-bank lenders. Structures include principal and interest to build equity steadily, or interest only where cash flow is being directed to fit-out, recruitment or equipment cycles.
Security and serviceability: The property is the primary security. Lenders assess business financials, stability of billings, expenses, and the ability to service the debt from practice profits and rental flows where a holding company leases to the trading entity.
Owner-occupier treatment: Lenders generally view owner-occupied medical property favourably due to low vacancy risk, specialised fit-outs that anchor the tenant, and demand resilience across procedures and consults.

How the deal is put together

Many specialist medical practice operators hold the premises in a separate entity, a company or trust, which leases the rooms back to the trading practice at a commercial rent set at arm's length. A lender then reads that inter-entity rent as the serviceability line and assesses the loan around it. The arrangement separates the property from trading risk, clarifies cash flow and can support future succession or partner buy-ins, and the finance is structured to fit how you already hold and occupy the property.

We arrange the lending around whichever entity holds the rooms, and your accountant confirms the final structure and tax position for your practice.

SMSF option: Commercial medical premises typically qualify as business real property, so a self-managed super fund can hold the rooms in a bare (custodian) trust and lease them back to your practice at market rent under a limited recourse borrowing arrangement. The arrangement funds the rooms as a single asset, so fit-out, equipment and goodwill are financed separately outside the fund, and the SMSF needs its own deposit since cross-collateralisation is not available inside super. Lenders typically size these loans at 65 to 80 per cent of the property's value, extending to 90 per cent with no LMI where a medical fund is buying the practice's own rooms. On a specialist medical purchase like this, we arrange and structure the loan against the property, while your accountant and SMSF specialist confirm the fund's tax, contribution and ownership position before contracts are exchanged.

What credit teams weigh up

Business financials: Two to three years of financials, BAS, tax returns, management accounts, and evidence of stable referral streams and MBS billing patterns.
Serviceability: Debt service coverage based on practice profits, add-backs, partner drawings, and proposed rental between the holding company and trading entity.
The property and valuation: Zoning for medical use, building compliance, parking ratios, proximity to hospitals or health hubs, fit-out quality, and independent valuation.
Deposit and equity position: Source of funds, available equity, potential director guarantees, and any ATO or creditor positions.
Lease and occupancy: If strata or multi-tenant buildings are involved, review of by-laws, outgoings, and any existing leases. For holding-company structures, a draft lease at market rent supports the credit case.

A specialist broker adds value in the specialist medical practice sector by aligning structure, serviceability and lender selection to your billing model and property type.

A situation we could help with

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

Profile: Two cardiologists operating a private practice in Sydney, renting 280 sqm near a major hospital, annual rent $220,000 plus outgoings, stable lists from hospital and GP referrals.
Objective: Purchase a strata medical suite for $3,200,000, plan a staged refurbishment at $450,000, keep consults running throughout.
Options we would map:
- An owner-occupier facility up to 80 per cent LVR, principal and interest over 20 years, with the fit-out as a separate equipment or capex line.
- A specialist healthcare lender funding the suite on the practice property alone for recognised medical borrowers with strong serviceability, then refinancing to a standalone facility as equity builds.
- Holding the suite in a unit trust with the trading company as tenant, market rent set to service the debt and keep clean internal accounts.
- An SMSF considered for a later acquisition of a second suite, noting liquidity and contribution limits.

How we would approach it: we would map the ranges, structures and repayments. On financials and valuation of this profile the group might access lending in the $2.2M to $2.6M range for the purchase, with an additional line for refurbishment, subject to serviceability, lender appetite and approval. The figures above are illustrative, not confirmed outcomes, and the decision would stay with the clinicians.

Other finance we arrange for specialist practice operators

Asset finance for specialist medical equipment: Fund ultrasound, endoscopy stacks, ophthalmic OCTs, surgical microscopes, dermatology lasers, autoclaves and imaging IT with medical equipment finance aligned to item-number revenue.
Fit-out and refurbishment finance: Cover cabinetry, lead-lining, HVAC upgrades, piped gases and patient flow redesign without draining operating cash.
Working capital loans: Smooth billings volatility around theatre lists, seasonal demand and payer cycles with working capital for a medical practice while you recruit or add rooms.
Business overdraft: Manage day-to-day outgoings for consumables, theatre fees and supplier terms with an approved limit.
Refinancing and debt consolidation: Reset pricing, roll multiple equipment and fit-out facilities into a cleaner structure that matches cash flow.
Construction and renovation: Finance extensions, procedure room upgrades or combining adjoining suites with staged drawdowns tied to works.
Business or premises acquisition finance: Support buying into a partnership, buying out a retiring partner, or acquiring an additional suite near your referral base.

Owning the premises can free equity over time, and a refinance can consolidate facilities to simplify administration and improve cash flow alignment.

Why specialist practice owners work with Ardent

Ardent Capital Group is a specialist in commercial mortgages for specialist medical practices, across purchase, refinance and equity release. We arrange and structure finance around how you intend to hold and occupy the property, including owner-occupier, holding-company leaseback and SMSF-compatible strategies. We service Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas. On a purchase like this the structure and the strategy matter as much as the rate. We give business owners clear advice on both, so the finance supports the wealth you are building and the years ahead. If you are weighing up buying your rooms, we would be glad to talk it through.

Specialist Practice Finance FAQs

What deposit do I need to buy specialist medical rooms?

Owner-occupier LVRs commonly reach up to 80 per cent, so a deposit around 20 per cent is typical, fundable from cash, practice retained earnings or equity in your home. Source of funds, serviceability and the valuation all shape the final position.

Can my SMSF buy the rooms and lease them to my practice?

Yes, commercial medical property usually qualifies as business real property. An SMSF can hold it and lease back at market rent via a limited recourse borrowing arrangement, with careful attention to liquidity and contribution caps.

Will lenders recognise my Medicare item numbers and private billing history?

Yes, lenders assess serviceability using your financials and billing stability. Evidence of consistent item-number revenue, private billings and referral sources strengthens the case.

Can the loan work if I hold the property in a company or trust?

Yes. Many clinicians hold the premises in a company or trust that leases to the trading practice at market rent, and the finance is arranged around that. A lender reads the inter-entity rent as part of serviceability, and your accountant confirms the ownership and tax detail.

Can I finance the fit-out as part of the purchase?

Often yes. Lenders may split the facility into a property loan and a separate fit-out or equipment line so you match terms to asset life.

How do banks view strata medical suites near hospitals?

Positively, where demand is deep and vacancy risk is low. Valuation, building quality, parking and compliance all influence pricing and LVR.

Can I buy now if my current lease has a short tail?

Yes, provided timing aligns for settlement, fit-out and move-in, or if you purchase an additional suite. A short lease horizon can also be a reason to secure ownership sooner.

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.