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GP running your own clinic · Western Sydney

Medical Practice Commercial Property Loan

By the Mortgagefy Team · Published 19 Oct 2026 · Last reviewed 19 Oct 2026

General practice carries one of the strongest cash-flow profiles in self-employed Australia — recurring Medicare receipts, long patient relationships, locked-in referral patterns. Lenders treat medical premises as premium commercial, with sharper pricing and higher LVR than almost any other specialised asset.

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General information only, not financial advice. Conditions apply.

How it works

Medical and allied-health premises are the one specialised asset class lenders LIKE. Reasons: recurring Medicare and private-health cash flow, long-term tenancies, strong valuations backed by national health-group demand, resilience through economic cycles.

Specific attributes that drive value: consulting room count and ratio (bigger practices are more valuable per m² than smaller ones), accessibility (disabled access, parking ratio), ground-floor vs upper-floor, clinical waste disposal, proximity to a hospital or health precinct.

Many GPs buy as investment commercial and lease to their own medical company, which has tax and asset-protection advantages. Others buy as owner-occupier for simplicity. The structure drives the lender choice and the LVR available.

What commercial lenders actually look at

Practice financials

Two-three years of returns, patient numbers, bulk-billing ratio, average fee, scheduled-fee split. Mature practices with low churn attract the best pricing.

Property fundamentals

Consulting room count, accessibility, parking, zoning. Health-precinct proximity drives valuation.

Owner-occupier vs investment

Lease-back to your medical company is common and lender-accepted. Market-rent lease on arm's-length terms.

AHPRA & compliance

Current AHPRA registration for all practitioners, clinical waste contract, patient-record management. Audit-ready paperwork reduces lender queries.

Ways to hold the property

Structure sits between you, your accountant and your lender — tax, asset protection and succession all matter. Four common patterns we see with Western Sydney owner-occupiers:

Personal name

Simplest to arrange. Interest can be deductible against rental income. Little asset protection from a trading-business perspective.

Company

Common for long-term holdings inside a corporate group. Flat company tax rate on rent; no CGT discount at the company level.

Trust (discretionary or unit)

Flexible for distributing rental income and separating property from trading-business risk. Lenders are comfortable with clean trust documentation.

SMSF — leased back at market rent

An SMSF can borrow (via a Limited Recourse Borrowing Arrangement) to buy premises that meet the ATO's "business real property" test and lease them to your business at arm's-length market rent. High-level only — a licensed SMSF specialist and your accountant must confirm your situation.

This is general information only, not financial, tax or legal advice. Confirm your situation with a licensed credit adviser and accountant.

Who this suits

GPs owning or part-owning a solo or group practice (3+ years)
Specialist practitioners running consulting rooms (surgeons, physicians, dermatologists)
Dentists and allied-health owners expanding into property ownership
Group practices consolidating partner-level investment into a single holding
Succession-planning practice owners handing to the next generation

Run your commercial numbers

Estimate repayments, LVR and deposit on a commercial purchase — owner-occupier or investment, full-doc or lease-doc — with our commercial property loan calculator. Paying rent now? Compare it against buying with the rent-vs-buy calculator.

Indicative only. Not a loan approval or borrowing-capacity assessment.

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Areas we cover across Western Sydney

Parramatta — Westmead health precinct suites and consulting rooms close to the public hospital.

Liverpool — Liverpool Hospital corridor with clustered allied-health and specialist suites.

Bankstown — Mixed medical and consulting strata around the hospital campus.

Campbelltown — Growing Macarthur health precinct with new-build medical centres.

Blacktown — Blacktown Hospital catchment with suburban medical centres and consulting rooms.

Castle Hill — North-west growth corridor medical suites servicing new residential pockets.

Penrith — Nepean health precinct with specialist and allied-health rooms.

Rouse Hill — Modern medical centres built into town-centre precincts.

Check your commercial loan options

Answer a few quick questions about the property and your business. Free, no obligation, takes under 3 minutes.

Frequently asked questions

Yes — many lenders offer professional-package LVR for medical, dental and allied-health property, sometimes up to 80-85% owner-occupier. The combination of recurring Medicare cash flow and strong valuations supports higher gearing.

Usually separately — a trust or SMSF holds the property and leases to the operating medical company. This separates asset-protection and tax outcomes from the practice entity. Your accountant drives the structure.

Common structure — the SMSF holds the property, leases to your medical company at arm's-length market rent (LRBA if borrowing). Business real property rules apply. High-level only; licensed SMSF specialist confirms.

A high bulk-billing ratio brings volume but tighter margin per patient. Lenders model realistic earnings per practitioner, not scheduled-fee potential. Mixed-billing practices show stronger profit lines.

Yes — the business and premises can transfer together. Property finance still secures only land and building. Goodwill, patient list and fit-out are financed separately or paid in cash.

Required for most new medical centres. Negotiate rectification at contract or budget capex post-settlement. Lenders won't fund rectification through the property loan.

20-25 year amortisation is common for medical property given its cash-flow strength and long-term asset profile. Interest-only periods of 2-5 years are available for cash management.

Also see: Dental practice · Allied health · Pharmacy · Owner-occupier loans

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General information only. Conditions apply. Mortgagefy is Credit Rep 532656 under ACL 348324.