GP clinics, specialist centres, partnership equity, goodwill financing — this is complex commercial lending that requires deep knowledge of how medical income is assessed and how lenders view practice ownership. We've done this many times. Your current bank probably hasn't.
Lenders treat a practice purchase as a business acquisition, not a home loan. They look hardest at who is buying and their experience, the practice's revenue model, and how the price splits between tangible assets and goodwill. The cleaner that split, the cleaner the approval — and the more the price leans on goodwill, the more deposit or structure it usually needs. For established specialists buying into rooms they already work in, the path can be surprisingly clean. The single biggest mistake is going to your own bank first. This is general information; your own position depends on your circumstances and the lender's assessment.
Every practice transaction is different. Whether you're a specialist buying equity in the rooms you already occupy, a GP acquiring a medical centre, or a practice owner bringing on a partner — the lending structure depends on ownership type, income model, entity structure and lender policy. We assess each scenario on its own terms.
A specialist who has been working in a practice and wants to buy equity — this is one of the cleaner transactions. We can often structure this with strong LVRs and without extensive financials, depending on the valuation and the specialist's income profile.
Medical centres have specific ownership structures — GP leasing arrangements, fee-split models, management fees. Lenders assess the experience of the entity buying in, the revenue model, and the centre's track record. We know what they look for.
Goodwill financing requires lenders to understand the value of patient lists, referral networks and practice reputation. Not all lenders will do this — and those that do assess it very differently. We know which ones suit your situation.
Adding rooms, expanding services, or refitting an existing practice. Usually structured alongside other borrowing rather than in isolation — we look at the full picture.
Most people assume their current bank will help them. Often it can't — either because it doesn't have the right policy, or because it doesn't understand the structure of medical practice ownership. Here's what actually matters to lenders:
Phil Riches has spent over 20 years in residential, investment and commercial lending — including deep experience with medical practice finance, goodwill funding and specialist income structures. Virginia Graham Riches founded Model Mortgages in 2004 and holds the Australian Credit Licence that governs everything we do.
We've structured practice transactions for GPs, surgeons, specialists, dentists and allied health professionals. We know what's possible and we know which lenders will actually do it.
"What kills deals most often? Assuming your current bank is going to be able to help you — whether that's a second-tier bank or whoever financed your car — without actually checking whether they have the right policies and products. Talking to the wrong lender first can close doors." — Phil Riches
Sometimes, but goodwill is usually the harder component because it doesn't behave like an easily recoverable asset. Many deals end up split — the tangible equipment and fit-out funded one way, the goodwill or buy-in handled with more deposit or a separate structure. The cleaner the split in the contract, the cleaner the conversation.
They look at how long it's been operating, who's running it, the revenue model and the lease, and the earnings the practice produces. Established specialists are often assessed on an earnings basis. The commercial valuation is usually the key gating factor.
Not always. For some established specialists — particularly buying into rooms or a practice they already work in — there's lender policy that can proceed on the valuation without full financials. It depends on the lender and your profile.
Going to your own bank first. The bank that financed your car or holds a small facility may not have the right policy or product for a practice purchase, and starting there can quietly limit what's possible.
Yes — and sometimes it's more efficient to structure the rooms or premises purchase alongside the practice interest rather than separately. We look at the combined picture.