Specialist lending for medical professionals
SMSF Lending for Medical Professionals
Own the rooms your practice works from instead of renting them from a landlord. SMSF lending for medical professionals changed on 10 August 2026, when new borrowing by a self-managed super fund (SMSF) in Australia was limited to business real property, so a fund can buy the premises you work in and the rent it collects builds an asset you control.
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What an Australian Fund Can Borrow For
Since 10 August 2026, a new SMSF loan can be used to buy business real property only, which for a medico usually means the consulting rooms, suite or building the practice operates from.
An existing residential SMSF loan set up before that date continues unchanged, and can usually be refinanced on similar terms. A top-up, equity release or change of security may be treated as new borrowing and fall under the restriction, so those are worth advice first.
The fund borrows under a limited recourse borrowing arrangement (LRBA), arranged through a specialist SMSF broker, which limits the lender's claim to the property held in a separate bare trust, so the fund's other assets sit outside the loan. Rental income and any later capital gain are taxed inside super, which is concessionally taxed.
Whether a purchase suits your fund depends on its balance, its strategy and your accountant's view, so the structure is confirmed with them before anything proceeds.
Where an SMSF Loan Still Fits
New borrowing sits in three situations, each with a different use for a medical fund:
Practice Premises Purchase
The fund buys the practice premises you occupy as business real property and leases them to your practice at market rent. This suits an owner currently paying rent who plans to hold the rooms long term.
Commercial Property Investment
The fund buys other business real property, such as a suite leased to an unrelated healthcare tenant, through commercial property lending. This suits a fund seeking commercial yield inside super.
Existing Loan Refinance
A grandfathered residential SMSF loan can move to sharper terms, and reviewing an existing SMSF loan often surfaces a better rate. A top-up or security change may be treated as new and restricted.
Which situation applies, and on what terms, depends on your fund and the lender, so treat these as a general guide.
What a Fund Needs to Qualify
Lenders assess the fund before the property, and most weigh four things:
Fund Balance
Many lenders look for a minimum balance before considering an LRBA, commonly $200,000 to $300,000. The figure varies by lender.
Loan Servicing
Rent plus concessional contributions must cover repayments, tested at the lender's assessment rate, not the current rate.
Cash Buffer
A reserve is usually held in the fund after settlement, commonly 5% to 10% of the property value, so repayments continue if the property sits empty.
Trust Structure
The SMSF deed and a separate bare trust must match the lender's requirements before settlement.
Minimum balances, buffers and servicing rules are set by each lender and change over time, so treat these as a general guide.
How an SMSF Purchase Comes Together
The steps run in order, from first contact to settlement:
- Fund and goal review. We look at the fund balance, its strategy and the property, and confirm the purchase fits before any application.
- Adviser coordination. Your accountant and licensed financial adviser confirm the super and tax position, since we arrange the finance only.
- Lender match. We compare the SMSF lenders still active on rate, maximum loan-to-value ratio (LVR), servicing and liquidity rules, then shortlist.
- Structure and approval. The SMSF deed and bare trust are set to the lender's template, and the loan moves to formal approval, commonly over a few weeks.
- Settlement. Funds, the bare trust and the purchase align at settlement, and the fund begins collecting rent.
Timeframes depend on the lender, the fund and your advisers, so the stages above are a general guide.
Trade-Offs of Borrowing in Super
Borrowing inside super carries real advantages and real costs, weighed together before a fund commits:
Where It Helps
Rent that once left the practice now builds an asset the fund owns, and the income and any later gain are taxed inside super. Because the loan is limited recourse, the fund's other assets sit outside the lender's claim.
Where It Costs
Few lenders write SMSF loans, so rates typically run higher than a standard commercial loan, and the fund must hold a cash buffer it cannot use elsewhere. The deed, bare trust and annual audit add setup cost and complexity, and the property generally cannot be improved with borrowed money during the loan.
Who an SMSF Purchase Suits
An SMSF purchase tends to suit a practice owner with an established fund who pays rent on their rooms and plans to hold the premises long term. It suits a fund less well where the balance is modest, where the buffer would leave the fund short, or where the goal was a residential investment, which a fund can no longer borrow to buy.
Your Practice Premises, Held in Super
The residential door has closed, and for a practice owner the more useful one is still open. A fund that qualifies can hold the rooms you work in through the SMSF lenders still active in Australia, turning rent into equity the fund keeps. Whether your fund is ready comes down to its balance, its buffer and your accountant's view, and that is the first thing we work out with you.
Frequently Asked Questions (FAQs)
Can my SMSF still borrow to buy a residential investment property?
No. Since 10 August 2026, a new SMSF loan can be used only for business real property. A fund can still buy residential property outright without borrowing, and existing residential loans continue.
Can my fund buy the rooms my practice works from?
Usually yes, as business real property. The fund buys the premises and leases them to your practice at market rent, and must still meet the lender's balance, servicing and liquidity requirements.
How much does my fund need before a lender will consider it?
Many lenders look for a minimum balance, commonly $200,000 to $300,000, plus a cash buffer after settlement. The exact figures vary by lender and change over time.
What happens to my existing SMSF loan?
It continues unchanged and can usually be refinanced on similar terms. A top-up, equity release or change of security may be treated as new borrowing and fall under the current restriction.
Who gives the tax and super advice on an SMSF purchase?
Your accountant and licensed financial adviser. Specialist Broking arranges the finance and is not licensed to give superannuation, tax or financial advice.
How long does an SMSF purchase take?
Commonly a few weeks from application to approval, depending on the lender, the fund's paperwork and how quickly the deed and bare trust are settled.
Why use Specialist Broking instead of going directly to my bank?
A single bank offers one SMSF policy, if it writes SMSF loans at all, and many no longer do. We compare the specialist lenders still active in this space and coordinate with your accountant and adviser, so the loan and the advice come together. We confirm how we are paid before any work begins.
Who leads the healthcare lending work at Specialist Broking?
Daniel Jones, founder and chief executive, began his finance career at Medfin Finance, supporting doctors, dentists and allied health professionals, before founding Specialist Broking. The team works with medical professionals across home lending, refinancing, and practice and equipment finance.
How do I get started?
A free 15-minute consultation is the starting point, available through the Specialist Broking website, by phone on +61 423 308 892, or by email at daniel@specialistbroking.com.au.
This page provides general information only and does not take into account your objectives, financial situation or needs. It is not superannuation, taxation or financial advice. Lending criteria, rates and rules vary between lenders and can change without notice, and an SMSF purchase depends on your fund's circumstances. Consider speaking with a qualified professional before acting.
OUR SPECIALIST AREAS
We believe finance should be delivered with care, integrity and expertise, by people who know what it’s like to stand in your shoes.
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Daniel Jones, Founder and CEO, is a former commercial pilot who understands aviation finance: variable rosters, unique allowances and banks that don’t always get a pilot’s income.
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Our team supports doctors, dentists and allied health professionals with finance strategies that evolve throughout their careers, from buying a first home to growing a practice and building long-term wealth.
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Our finance capability runs deep across commercial and investment lending. Led by Daniel Jones, who has worked extensively in medical and professional finance, our team structures lending that supports business growth, cash flow and asset acquisition.
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We know finance is never just about numbers. It is about decisions that shape homes, careers and futures. We support first home buyers, families planning their next move and clients looking to refinance or consolidate debt.
Our Team
CEO and Founder
A former Qantas Group pilot turned specialist broker, Daniel helps aviation, medical and business professionals navigate complex finance with precision. He builds long term relationships with clients, helping them strengthen their financial position and plot a course that makes sense for the long haul.
Specialist Broker
Carly helps clients turn property goals into reality by combining her experience in Sydney's property market and global finance with practical lending advice tailored to each client's circumstances.
How we work
Together, our team helps clients structure lending that is strategic, adaptable and built for the long haul.
STEP 1
Reach out to Specialist Broking.
STEP 2
We get to know you and your goals.
STEP 3
We negotiate with banks and lenders.
STEP 4
We conduct an annual financial health check.
WHAT OUR CLIENTS SAY:
“We had an excellent experience with Specialist Broking. Dan assisted us with our home loan and made the entire process straightforward and stress-free.
Dan was consistently professional, approachable, and responsive to our questions. We felt well supported throughout and would not hesitate to recommend Specialist Broking to others seeking a broker.”
Stephanie Knook — Physiotherapist