What terms and residuals are common for medical equipment?

Typical terms are 24–84 months. Residuals/balloons commonly range 0%–40% depending on asset life and policy: imaging 10%–30%; surgical/diagnostic 5%–25%; IT/monitoring 20%–40%; furniture/fitout 0%–20%.

Many prime approvals are possible at 0% deposit where cash flow and credit are strong. A 10%–20% deposit can improve pricing for startups, older assets or lower-doc deals.

Can used medical equipment be financed?

Often yes, subject to age, condition, serialisable asset ID and resale profile. Older equipment may require a shorter term and/or higher residual.

Fixed vs variable – what do healthcare businesses usually choose?

Most choose fixed-rate asset finance for payment certainty across 3–7 years. Variable is less common for equipment and is typically considered only when early payout or refinancing is anticipated.

Medical Equipment Finance Interest Rates in Australia

Q: What are typical medical equipment finance interest rates in Australia?

Indicative ranges as at 18 April 2026: Prime chattel mortgage 7.9%–11.9% p.a.; Prime finance lease 8.0%–12.5% p.a.; Operating lease (rate factor 0.028–0.038/month, approx 8.5%–14.5% effective); Low-doc 10.5%–15.9% p.a.; Startup 12.9%–19.9% p.a.; Challenged credit 15%–24% p.a. Actual pricing depends on the RBA cash rate, asset, term, age, deposit/residual and credit strength.

Overview

Medical equipment finance interest rates in Australia vary by product type (chattel mortgage, finance lease, operating lease), credit profile, asset class and age, term, deposit or residual, and overall financial strength of the practice. Because equipment ranges from imaging suites to IT monitors, lenders price risk and resale differently by asset.

Use this page to benchmark a realistic rate range, compare structures with worked numbers, and decide where a deposit or balloon makes sense for cash flow and total cost.

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Current interest rate ranges (Australia)

Indicative guide as at 18 April 2026. Pricing moves with the RBA cash rate, lender funding costs and credit risk. Final offers depend on full assessment.

Prime – Chattel Mortgage (ownership from day one): 7.9% – 11.9% p.a.
Prime – Finance Lease (residual required): 8.0% – 12.5% p.a.
Operating Lease (off-balance sheet, factor-based): monthly rate factor 0.028 – 0.038 (approx 8.5% – 14.5% effective)
Low‑doc / alt‑doc (strong bank statements, limited financials): 10.5% – 15.9% p.a.
Startup (new ABN or < 24 months trading): 12.9% – 19.9% p.a.
Challenged credit / paid defaults considered: 15% – 24% p.a.

Assumptions: Strong Australian borrower, GST-registered, asset type within normal medical categories (e.g., ultrasound, X-ray, autoclave, patient monitors, chairs, IT/servers), standard security (PPSR), and no extraordinary risks. For context on interest-rate settings see the RBA cash rate decisions.

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What affects your medical equipment finance rate?

Credit profile: Clean file and proven obligations lower risk and rate.
Time in business: >24 months with stable revenue usually prices better than startups.
Financials vs low‑doc: Full financials can unlock prime pricing; low‑doc adds margin.
Asset type and age: New, serialisable, high‑resale medical equipment prices better than niche or aged assets.
Term and residual/balloon: Longer terms may attract slightly higher rates; reasonable residuals can improve cash flow.
Deposit / equity: More skin in the game can reduce risk and sharpen pricing.
Bank statements and cash flow: Healthy operating cash flow supports stronger offers.

Check your likely tier (prime, low‑doc, startup)

Worked examples

Example 1: $150,000 ultrasound • 60 months • Chattel mortgage • No balloon

Assumed rate: 9.5% p.a. fixed
Monthly repayment: approx $3,150
Total over term: approx $189,000
Total interest: approx $39,000
Indicative fees: $495 establishment + $6 PPSR (state/structure dependent)

Sensitivity: A 1.0% p.a. rate change on this 5‑year loan moves the monthly by ~ $70–$75.

Example 2: $150,000 ultrasound • 60 months • Chattel mortgage • 20% balloon

Assumed rate: 9.5% p.a. fixed • Balloon: $30,000 (20%)
Monthly repayment: approx $2,760
Total paid (repayments + balloon): approx $195,480
Total interest: approx $45,480
Observation: Lower monthly vs Example 1, but higher total interest due to balloon.

Example 3: $120,000 autoclave • 48 months • Lease vs. Chattel comparison

Finance lease (assumed implicit 8.8% p.a., residual 25% = $30,000): monthly approx $2,449; total incl. residual approx $147,552
Chattel mortgage (9.0% p.a., no balloon): monthly approx $2,990; total approx $143,520
Observation: Lease gives a lower monthly but can slightly increase total cost depending on residual and exit plans. Consider tax and ownership outcomes.

The numbers above are estimates for illustration only. Your lender’s amortisation method, exact rate, fee set and settlement date will change the final figures. For tailored numbers, request a written quote.

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Typical terms and residuals by medical asset

Common term range: 24 – 84 months (36–60 months most common)
Residuals / balloons (guide):
- Imaging (ultrasound, X‑ray, OPG/CBCT): 10% – 30%
- Surgical/diagnostic equipment (autoclaves, tables, scopes): 5% – 25%
- IT and patient monitoring: 20% – 40% (shorter tech life)
- Furniture/fit‑out: 0% – 20%

Sense‑check your term and residual

Fees and total cost to expect

Establishment/doc fee: typically $295 – $695
PPSR registration: usually $6 – $25 per asset
Monthly admin fee: $0 – $15 (product/lender dependent)
Early payout: Interest recalculation and/or break fees may apply; ask for a payout figure before refinancing or selling.

Request a full fee disclosure

How to improve your interest rate

Provide recent financials or strong bank statements (last 6–12 months) to evidence cash flow.
Consider a modest deposit (10%–20%) or appropriate residual to reduce risk.
Choose assets with clear serial numbers and strong secondary market support.
Keep existing obligations current and limit recent credit enquiries.
Align term to useful life (lenders reward sensible structures).

See what would sharpen your pricing

Get help with medical equipment finance

Comparing medical equipment finance interest rates is easier with a broker who understands healthcare assets and lender policy. Share your scenario and we’ll map your likely tier, structure and repayments.

Frequently asked questions

What are typical medical equipment finance interest rates?

As a guide (18 April 2026): prime chattel mortgage 7.9%–11.9% p.a.; prime finance lease 8.0%–12.5% p.a.; operating lease factor 0.028–0.038/month (approx 8.5%–14.5% effective); low‑doc 10.5%–15.9% p.a.; startup 12.9%–19.9% p.a.; challenged credit 15%–24% p.a. Final pricing depends on credit, asset, term, age and structure.

Check where you sit

Is a chattel mortgage, finance lease or operating lease cheaper?

Rates can be similar for prime borrowers, but total cost varies with residuals and tax treatment. Chattel mortgages often have slightly lower all‑in cost when you want ownership. Finance leases use a required residual that lowers monthly repayments but may increase total payable. Operating leases bundle usage with return options and are priced via a rate factor.

What terms and residuals are common?

24–84 months is typical. Residuals commonly range 0%–40%: imaging 10%–30%; surgical/diagnostic 5%–25%; IT/monitoring 20%–40%; furniture/fit‑out 0%–20%. Choose a residual that matches the realistic resale or end‑of‑life value.

Do I always need a deposit?

Not always. Strong, established practices can often secure 0% deposit. Startups, older assets or lower‑doc applications may benefit from a 10%–20% deposit to improve approval odds and pricing.

Can used assets be financed?

Yes, frequently. Age, condition, service history, software status and resale profile influence appetite. Older/used assets may require shorter terms and/or higher residuals.

How does GST work on equipment finance?

For chattel mortgages, eligible GST‑registered businesses generally claim the GST on the purchase price up front in the BAS for the period the asset is acquired (subject to ATO rules). Leases generally have GST on each repayment. Confirm details with your tax adviser and see the ATO’s guidance on hire purchase/loan agreements.

References

Reserve Bank of Australia – Cash rate decisions and cash rate target
Australian Taxation Office – GST and hire purchase (chattel mortgage) treatment

About the author

Jordan Kelly — MFAA Accredited Finance Broker. Credit Representative 530245 of Fintopia Pty Ltd (Australian Credit Licence 389328). Over 12 years arranging asset finance for Australian healthcare, dental and allied health businesses.

General information only. Not financial or tax advice. Consider your circumstances and seek professional advice before acting.

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Key takeaway

For medical equipment finance in Australia, prime rates often sit in the high‑single to low‑double digits, with structure, documentation, term and asset profile driving the final outcome. Model both cash flow and total cost—then select the product (chattel mortgage, finance lease or operating lease) that matches your ownership, tax and end‑of‑term goals.

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