Aged Care Property Loans from 6.80% - 9.50%

Having arranged various types of aged care finance across Australia, we can help you successfully fund residential aged care facilities (nursing homes), retirement villages, NDIS-approved Specialist Disability Accommodation (SDA), dementia care facilities, respite care centres, and mixed-use aged care developments.

What we find is that lenders assess each property type quite differently. Nursing homes with ACQSC accreditation typically receive the most favourable terms, whilst NDIS properties require lenders who understand the Specialist Disability Accommodation framework set by the NDIS Quality and Safeguards Commission. Retirement villages can be more complex as they often involve different ownership structures.

Our commercial property loans broker services cover all aged care facility types, and we’ve built strong relationships with the lenders who genuinely understand this specialised sector.

We see the maximum Loan-to-Value Ratios for aged care properties typically range from 60% – 75%.

In our experience, ACQSC-accredited nursing homes with 90%+ occupancy and national operators like Japara, Regis or Estia are often able to access the highest LVRs. We find that smaller operators or facilities building occupancy may be limited to 60-65% LVR initially, but can refinance to higher LVRs once they demonstrate consistent performance. For SMSF purchasers, we typically secure up to 70% LVR through specialist SMSF property loans – notably higher than most other commercial property types in super funds.

This is absolutely critical. Lenders scrutinise ACQSC (Aged Care Quality and Safety Commission) accreditation more than almost any other factor. We always request current accreditation certificates upfront and review your compliance history, Quality Indicator performance, and any sanctions or corrective actions with the Aged Care Quality and Safety Commission.

What we’ve found is that facilities with clean compliance records and strong quality ratings access better rates from 6.80%. However, facilities with recent compliance issues face significantly higher rates or reduced LVRs – sometimes rejection from major banks entirely.

The good news is that our non-bank lenders can accommodate recent minor compliance issues on a case-by-case basis, provided you can demonstrate the corrective actions you’ve taken. We’ve successfully funded facilities that were initially declined elsewhere by presenting their compliance improvement journey strategically.

In our experience, most lenders require minimum occupancy rates of 85% for aged care facilities, with major banks strongly preferring 90%+ occupancy for optimal rates and terms. We measure occupancy across all bed types and care levels, reviewing 12-24 months of historical occupancy trends with our lenders.

Facilities with occupancy below 80% typically face higher interest rates, reduced LVRs, or may need to demonstrate clear strategies for improving occupancy before approval. That said, we’ve successfully funded developing facilities or those undergoing expansion through our commercial construction loans broker service, where different occupancy requirements apply during the development phase.

Absolutely, and we arrange these structures regularly. Self-Managed Super Funds can purchase aged care properties including nursing homes, retirement villages, and NDIS accommodation. What makes aged care particularly attractive for SMSFs is the stable, government-backed income streams.

Our SMSF aged care purchases typically access up to 70% LVR through specialist lenders who understand compliance structures and passive investment requirements under the ATO’s SMSF rules. The aged care property must meet the sole purpose test and be held for genuine retirement benefit – we help structure these correctly from the outset.

What we find critical is demonstrating the fund can service the loan from existing cash flow, rental income, or planned contributions. We arrange SMSF commercial finance with lenders who genuinely understand aged care SMSF structures, not just general commercial property lending.

Right now, we’re securing aged care property loan rates starting from 6.80% for well-performing facilities with strong occupancy and accreditation.

National providers with multiple facilities, ACQSC accreditation, and 90%+ occupancy access the most competitive rates we can negotiate.

What we always tell clients is that rates vary significantly based on facility type, occupancy levels, operator experience, compliance history, and loan size. That’s why we negotiate with 60+ lenders rather than sending you to just one – the rate differences can be substantial, sometimes 1-2% annually, which over a 20-year term represents hundreds of thousands in interest savings.

This is where aged care lending differs dramatically from other commercial property types. Government funding through aged care subsidies, Refundable Accommodation Deposits (RADs), Daily Accommodation Payments (DAPs), and care subsidies are absolutely critical to loan serviceability calculations.

What our lenders assess is the stability and value of government funding, carefully reviewing aged care funding statements and accommodation payment arrangements. We find that facilities with higher proportions of government-funded residents and established RAD pools can access notably better lending terms – the government backing provides security that lenders value highly.

In our experience, lenders factor government funding into cash flow projections at approximately 75% serviceability weighting, recognising aged care’s regulated revenue model provides exceptionally stable income streams for loan servicing compared to most other commercial property types.

We streamline this process significantly, but here’s what our lenders typically require: 2-3 years of operator financials, ACQSC accreditation certificates, 12 months of occupancy reports by care level, government funding breakdowns (subsidies, RADs, DAPs), Quality Indicator reports, compliance certificates, bank statements, and asset/liability statements.

The aged care-specific documents include resident retention analysis, local demographic studies showing aging population trends, management agreements if applicable, and trust or company documentation for entity purchases. What we’ve found is that the more comprehensive your initial documentation, the faster we can move through the approval process.

We can often pre-approve applications with preliminary documentation through our commercial finance broker service, then gather the detailed paperwork while we’re negotiating terms. This saves you weeks in the overall timeline.

Yes, and we can help you refinance your commercial loan to access equity, funding expansions, improving cash flow, or consolidating debt. In our experience, refinancing can release substantial equity for purchasing additional facilities, upgrading existing beds, adding dementia care wings, or general business purposes.

What our lenders assess in refinancing applications is current occupancy rates, updated facility valuations, recent financial performance, and compliance status. We find that refinancing typically settles within 4-8 weeks and can access similar LVRs to commercial purchase finance (up to 75%) depending on facility performance.

Our commercial property refinance specialists work exclusively with healthcare-focused lenders who properly understand aged care valuations and cash flow structures – this expertise makes a significant difference in the equity release calculations and ultimately how much you can borrow.