- Dentists
- Updated
- • 5 min read
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
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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.
Can practice debt reduce my home loan borrowing capacity?
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
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Personal salary/drawings from the practice
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Net profit of the practice (2 years average typically)
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Business debt — overdraft, equipment loans, commercial mortgage
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Business entity structure — sole trader, company, trust or partnership
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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
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Applying to a lender without practice lending experience
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Not having two full years of business financials ready
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Forgetting that business liabilities count in personal serviceability
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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.
Does business debt reduce my home loan borrowing?
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.