Practice Owner Home Loans

Dentists and doctors who own a practice face a more complex lending assessment than employed professionals. Personal and business income, business debt, company or trust structures and practice valuation can all affect the home loan process.

Quick Answer

Practice owners can access home loans, but income assessment is more complex. Tax returns, financials, business bank statements and liability details are all commonly required alongside personal income documentation.

What Lenders Assess For Practice Owners

Personal income — salary, drawings or director fees

Practice income — profit after expenses, assessed via tax returns

Business debt — existing practice loans, overdrafts and equipment finance

Practice structure — sole trader, company or trust

Property — commercial or residential, owner-occupied or investment

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Frequently Asked Questions

Do I need two years of financials as a practice owner?

Most lenders require two years. Some may consider alternative documentation in specific circumstances.

Yes. Business liabilities are included in the overall assessment of personal borrowing capacity.

Personal vs Business Income For Practice Owners

When a dentist or doctor owns a practice, lenders need to assess both personal and business income. The challenge is that practice profit after expenses — not practice revenue — is what counts toward personal borrowing capacity.

What Lenders May Look At

Personal salary/drawings from the practice

Net profit of the practice (2 years average typically)

Business debt — overdraft, equipment loans, commercial mortgage

Business entity structure — sole trader, company, trust or partnership

BAS statements confirming GST turnover and expenses

Property secured as practice collateral if applicable

Why Two Years Of Financials Matter

Most lenders use an average of the last two years of business income when assessing a practice owner. If income has varied significantly, some lenders use the lower year. Some specialist lenders may use more flexible methods.

What Counts As "Add-Back" Income

Lenders may add back certain non-cash expenses to the reported taxable income of a practice — commonly depreciation, amortisation and some one-off expenses. The add-back methodology varies by lender.

Common Mistakes Practice Owners Make

Applying to a lender without practice lending experience

Not having two full years of business financials ready

Forgetting that business liabilities count in personal serviceability

Using company cash flow to demonstrate income without proper documentation

Do I need two years of financials as a practice owner?

Most lenders require two years. Some may consider alternatives in specific circumstances.

Yes. All business liabilities are included in personal serviceability.

Review Practice Owner Lending Options

We assess personal and business income for practice-owning professionals.

General information only. Lending eligibility, LMI waiver policies, rates and approval outcomes vary by lender and are subject to assessment.

Review Practice Owner Lending Options

We assess personal and business income for practice owners.

General information only. Lending outcomes vary by lender and individual circumstances.

Related Reading

Written by: Simpli Finance Lending Team · Reviewed by: [Broker Name], Mortgage Broker · Last updated: June 2026