Medical Suite Finance in Australia

Most major banks offer 65% to 70% LVR on tenanted medical suites, with some lenders going up to 75% to 80% for medical professionals with strong financials. Medical suites with long-lease government or ASX-listed tenants are typically assessed at the higher end. If you're buying through an SMSF, expect a cap closer to 70% with most specialist lenders.

Yes, several major banks offer medical professional lending packages that include LMI waivers for residential security and preferential assessment for owner-occupied commercial property purchases. These packages are typically available to registered doctors, dentists, and specialists earning above $150,000 per year. The benefit is strongest on the residential side, but it can also improve the overall borrowing position when cross-collateralising with commercial property.

Most lenders won't include fitout costs in the commercial property loan itself because fitout has limited residual value as security. You'll typically need to fund medical fitout separately through a commercial equipment or fitout finance facility. Some lenders will consider a higher loan amount if the fitout is already completed and adds to the property's rental value at the time of valuation.

Purpose-built medical suites with highly specialised fitout, such as imaging centres or surgical day hospitals, can be classified as specialist security by some lenders, which restricts the available options. Standard consulting rooms or GP clinics in a commercial building are generally treated as standard commercial property. The key factor is how easily the premises could be re-let or repurposed if the tenant vacates.

Lenders assess medical suite rental income the same way as other commercial property, using the signed lease, the net rental figure, and the tenant's financial strength. Medical tenants such as established GP practices and allied health groups are generally considered strong covenant tenants. The debt service coverage ratio, where lenders require net rent to cover 1.2x to 1.5x the loan repayments, still applies.

Yes, medical suites are one of the most common commercial property types purchased through SMSFs. You can use the SMSF to buy the premises and lease them back to your own medical practice at market rent, provided the arrangement complies with ATO rules on related-party transactions. Most major banks have exited SMSF lending, so you'll typically need a specialist non-bank lender offering 70% to 75% LVR.

Commercial loan rates for medical suites in May 2026 typically range from 6.5% to 9.5% with major banks and from 7.5% to 12% with non-bank lenders, depending on LVR, documentation type, and borrower profile. Owner-occupier medical professionals with strong financials and low LVR can access the lower end of the range. The RBA cash rate sits at 4.35% as of May 2026, which flows through to variable commercial rates.

If a medical tenant vacates, the lender will reassess the facility at the next review, which could lead to a margin increase, a reduction in the facility limit, or a request for additional security. Medical suites in established health precincts typically re-let faster than general commercial space, but the lender still needs to see a clear plan. Having a lease with a long remaining term reduces this risk from the outset.