Quick answer
An aged care property loan finances the land and buildings of a residential aged care facility, retirement living site or related development. Lenders assess operator quality, occupancy, regulatory standing, the sector's funding settings and the property itself. Ownright Custom Finance arranges aged care property finance Australia-wide, including purchases, refinances and development funding.
Key points
- Finance for residential aged care, retirement living and seniors accommodation
- Operator track record and compliance carry real weight
- Sector funding changes make careful structuring important
- Development and refurbishment can be funded in stages
- Suits
- Operators, owners, investors and developers
- Security
- The facility property and often the operating business
- Uses
- Purchase, refinance, build, refurbishment
- Australia-wide
- Yes
What is an aged care property loan?
An aged care property loan is commercial finance secured over a facility that houses and cares for older Australians. That might be a residential aged care home, a retirement living community, or a mixed seniors precinct. The loan finances the land and buildings, sometimes alongside the operating business.
Few property types sit so close to policy. Funding settings, care standards and workforce rules all shape how a facility performs, and lenders know it. That is why a well-prepared application matters more here than for a typical office or shop.
Who needs aged care property finance?
- Operators buying or expanding a facility
- Owners holding the property and leasing to a separate operator
- Investors acquiring a facility with a long lease in place
- Developers planning a new site or a refurbishment
- Owners refinancing after a lender has stepped back from the sector
- Family groups restructuring ownership of a facility
What do lenders look at?
The operator. Experience, compliance history, quality standing and the strength of the management team.
Occupancy and income. Trends over time, mix of residents and the sustainability of earnings under current funding arrangements.
The regulatory context. The new Aged Care Act commenced on 1 November 2025, and lenders consider how a provider sits under it. The Aged Care Quality and Safety Commission publishes information for providers.
The building. Age, condition, room configuration, compliance with current standards and refurbishment needs. See property refurbishment finance.
The borrower and structure. Operator and property entities, guarantees and group exposure. Our page on company and trust borrowing explains how lenders read these.
Different aged care assets, different lender views
| Asset type | What lenders often focus on |
|---|---|
| Residential aged care home | Operator, occupancy, compliance, building condition |
| Retirement living or village | Resident contracts, state rules, exit arrangements |
| Leased facility (owner vs operator) | Lease length, operator strength, rent cover |
| Development or refurbishment | Approvals, builder, costs, timeline to income |
How does Ownright approach aged care property?
We ask what story the numbers are telling and what has changed. A facility that has dipped in occupancy during a refurbishment is a different case from one in structural decline, and lenders can see the difference when it is explained. Trevor Scott’s four decades in finance include many deals where specialist security needed careful presentation.
We look across lenders, including those outside the major banks, and consider short-term options where a deadline is tight. Australia-wide, from our Knoxfield VIC head office, we can talk through your facility and give an honest view of what looks achievable.
An illustrative scenario
An owner holds a residential aged care property leased to an operator. The lease is nearing expiry and the current lender has signalled it will not renew the facility. The owner needs time to negotiate a new lease. A short-term commercial facility might bridge the gap while the lease is renegotiated, followed by a longer-term refinance. Whether it works depends on the lender, the security and the paperwork. This scenario is illustrative only.
Mistakes to avoid
- Assuming every commercial lender understands aged care
- Letting a lease run down before approaching lenders
- Presenting out-of-date occupancy or compliance information
- Planning refurbishment without costings and a funding source
- Ignoring how new sector rules may affect income projections
Documents to have ready
- Financial statements and management accounts for the operator
- Lease agreements, if the property and operator are separate
- Occupancy and compliance summaries
- Valuation or insurance details, plus building reports
- Plans and quotes for any works
- Entity documents and guarantor details
Our commercial LVR and valuation guide and documents checklist are useful starting points. If a deal is in development stage, see development finance.
Why is specialist knowledge important in this sector?
Aged care funding is tied to government settings, care minutes, workforce rules and resident fees. These shift over time, and lenders adjust their appetite when they do. A facility that was a comfortable loan a few years ago may now require a different explanation, even if its trading has not changed.
The reverse also happens. A well-run facility with healthy occupancy and a clean compliance record can attract strong lender interest even in a cautious market. The job is to put the right information in front of the right lender at the right time.
How are retirement and seniors living sites different?
Retirement villages and seniors communities work differently from residential care. Residents often hold contracts with entry and exit payments, and state laws govern how those work. Lenders therefore look at the contract model, the village’s financial position and what happens when a resident leaves. Valuations reflect those arrangements.
If you hold or plan to buy this type of site, tell us which model it follows. We can then discuss which lenders have experience and how they typically assess it. For building works and new stages, commercial construction loans may also be relevant.
What if I need to refinance quickly?
Deadlines arrive for many reasons: a lender exit, a loan maturity, a sale falling over or a lease renewal. When time is short, it helps to know which levers are available. A short-term facility against the property can buy time. A second ranking loan may release funds without disturbing the first lender, where permitted. A full refinance with a new lender may be possible but can take longer because of the due diligence involved.
Speed depends on the lender, the security and how quickly documents arrive. We are honest about timing and start the paperwork early. Our guide on bridging loan exit strategies explains why the exit plan is so important.
How do we help owners who do not operate the facility?
Some owners are investors or families who lease the property to a specialist operator. Lenders then care greatly about the lease and the operator’s financial strength. We help present the property as a stable investment, with the lease, rent cover and operator track record clearly set out. Where a lease is due for renewal, we discuss how to approach lenders in a way that does not scare them off.
Ready to fund an aged care property?
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How it works, step by step
- 1
Step 1
Share the facility type, operator details and your objective.
- 2
Step 2
We review occupancy, compliance, financials and structure.
- 3
Step 3
We approach lenders with real appetite for aged care assets.
- 4
Step 4
Valuation, approvals and settlement or staged funding are coordinated.
Frequently asked questions
How do lenders assess an aged care facility?
Typically on the operator's track record, occupancy, financial performance, compliance record and the physical state of the building. Because the sector has its own funding and regulatory framework, many lenders treat aged care as a specialist asset and ask for detailed information.
Have the aged care rules changed recently?
Yes. The new Aged Care Act started on 1 November 2025, and the sector is working through related reforms. Lenders pay attention to how a provider is positioned under the new framework. We keep that in mind when presenting a facility, and you can read the official summary on the Department of Health and Aged Care site.
Can I buy an aged care facility with a separate operator?
Yes. Some owners hold the property and lease it to an operator. Lenders look at the lease, the operator's strength and the relationship between the two parties. A strong operator on a long lease generally helps.
Can finance fund refurbishment of an older facility?
Often, either through a top-up on existing security or a separate staged facility. Lenders want to see how works will affect occupancy, compliance and earnings. Having quotes and a timeline ready helps the conversation.
What about retirement villages and seniors living?
They are a different model from residential aged care, with their own rules, resident contracts and valuation approach, and state laws differ. Lenders view them separately. We can discuss which type of property you hold or plan to buy and how lenders typically see it.
Is a short-term loan possible if I need to settle quickly?
Sometimes, depending on the lender, the security and how quickly documents arrive. A short-term facility can bridge to longer-term finance once the facility is stable or a sale completes. Tell us your deadline early so we can say what is realistic.