Buy or Lease a Dental Office in the GTA? How to Decide

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

What's Your Home Worth Right Now?

Get a free AI-powered price range for your property in under 90 seconds, based on recent GTA comparable sales. No name or address required.

Get My Free Estimate →

Two-storey medical office building beside a suburban GTA plaza on an autumn day (illustrative)

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — How GTA dentists decide between leasing clinic space and buying a dental office unit, including bank financing and the HST trap.

Short answer

Lease if you are early in your career, unsure of the location or also buying a practice. Buy if you plan to stay ten years or more and want to remove demolition and relocation risk. Some banks advertise up to 100% financing over 25 years, but HST on a commercial unit may not be recoverable for dentists.

This guide is for GTA dentists choosing between leasing clinic space and buying a dental office unit, whether in a plaza, a medical building or a commercial condo. You will get a side-by-side comparison, what the big banks say they will lend, the HST point that catches dentists out, and the questions that usually decide it.

Should a dentist buy or lease a dental office in the GTA?

There is no single right answer, but there is a pattern. Leasing keeps your cash for equipment, the build-out or a practice purchase, and lets you move if the location is wrong. Buying protects you from the landlord risks that hurt dental practices most, such as demolition and relocation clauses, and gives you an asset you can keep after you sell the practice. The table sets out the trade-offs.

Question	Leasing	Buying a unit
Cash needed up front	Deposit, build-out and equipment	All of that plus closing costs; some banks advertise up to 100% financing
HST	HST on rent, mostly not recoverable for exempt dental services	HST can apply to the purchase; recovery depends on how the unit is owned and used
Demolition or relocation risk	Depends on the lease	None from a landlord; condo rules still apply
Control of the build-out	Needs landlord consent	Yours, subject to permits and condo rules
Moving later	Easier at lease end	Means selling or renting out the unit
When you sell the practice	Buyer needs the landlord’s consent	You can sell the unit too, or lease it to the buyer
Tax write-off	Rent is an operating cost	Building cost recovered slowly through capital cost allowance

Source: TD and CIBC dentist financing pages; Oral Health (2025); CRA GST/HST Notice 339 and Memorandum 19.4.1; CRA capital cost allowance classes. Confirm tax points with your accountant.

How much can a dentist borrow to buy a clinic unit?

The big banks compete hard for dentists, and their public pages say so. TD’s page for healthcare professionals advertises financing of up to 100% loan-to-value on owner-occupied commercial real estate with a 25-year amortization. CIBC’s dental finance page says banks can often finance up to 100% of a building the practice occupies “so long as affordability is evident”, over up to 25 years, fixed or variable. Both say approval depends on credit and lending criteria, and that personal guarantees may be required.

“Up to 100%” is a ceiling, not a promise. In my experience the bank looks at your practice income, your personal debt and the property itself. As of November 2026, prime at the big banks is 4.70% after the Bank of Canada’s October increase, so payments on a variable loan are higher than they were a year ago.

What does buying a dental office unit really cost beyond the price?

HST on the purchase

This is the point that surprises most dentists. CRA’s memorandum on commercial real property says a sale of commercial property is generally taxable, and that a registered buyer self-assesses the tax instead of paying it to the seller. CRA’s Notice 339 says dental services are exempt supplies, and that no input tax credit is allowed on capital real property if commercial use is 10% or less. Put simply, a dentist who buys a unit and uses it only for exempt dental work may not be able to get the HST back. Some owners hold the unit in a separate corporation that rents it to the practice, which changes who pays HST and when. This is a question for your accountant before you sign, not after.

Land transfer tax and closing costs

Land transfer tax applies to commercial purchases, and inside the City of Toronto you pay both the provincial tax and the Toronto municipal tax. My guide to land transfer tax in Toronto has the rates and worked examples. Add legal fees, title insurance, an appraisal if your lender wants one, and a building or condition report.

Condo fees, the reserve fund and the status certificate

Many GTA clinic units are commercial condominium units. Under section 76 of Ontario’s Condominium Act, the corporation must provide a status certificate that shows the common expenses for the unit, any increases, any special assessments for the reserve fund, and legal actions involving the corporation. Read the declaration too, because it can limit uses, signage and after-hours access. My post on reading a status certificate was written for homes, but the same red flags apply.

Want a quick sense of what a clinic unit in your area might sell for, or rent for, before you talk to a lender? Try the estimator below.

Who should own the unit: you, your professional corporation or a holding company?

This is a legal and tax decision, so treat this section as questions to bring to your lawyer and accountant. Ontario’s Business Corporations Act says the articles of a professional corporation must say it may not carry on a business other than the practice of the profession. It allows activities related or ancillary to the practice, including investing surplus funds. Whether your dental corporation, a separate holding company or you personally should own the unit depends on your financing, HST, liability and your exit plan.

The exit plan matters more than people expect. If you plan to sell shares of your corporation one day and claim the lifetime capital gains exemption, the assets inside the corporation affect whether the shares qualify. A building inside the practice corporation can help or hurt depending on how it is used. Ask your accountant to model this before you close.

When does leasing make more sense for a dentist?

You are early in your career. Cash is tight, and you may be paying off student debt while you fund the build-out and equipment.
You are not sure about the location. A first practice in a growing suburb is a bet. A lease with renewal options lets you test it.
You are also buying a practice. Most dentists cannot finance both a practice purchase and a building at once without stretching.
The right space is not for sale. In my experience, in many plazas and medical buildings the best units are only available for lease.

If you lease, the lease does the work that ownership would otherwise do. A 2025 Oral Health article by a dental lawyer said buyers typically need 10 to 12 years free of demolition or relocation clauses to get bank financing. Negotiate for that from day one. My guide to commercial lease clauses in Ontario covers the core terms.

When does buying make more sense for a dentist?

You plan to stay ten years or more. Owning removes the risk of a landlord ending the lease to redevelop or moving you to another unit.
Your build-out is large. Specialty practices with surgical suites, CT or sedation rooms have the most to lose from a forced move.
You want a second asset for retirement. When you sell the practice, you can sell the unit too, or keep it and lease it to the buyer.
The numbers work. Compare the full monthly cost of owning (loan payment, condo fees, taxes, repairs) against rent plus additional rent plus HST.

How does owning the building change selling your practice later?

When you own the unit, the lease your buyer signs is a lease you write. That is a real advantage. CIBC notes that a practice loan typically will not run longer than the remaining lease term, so a buyer’s bank will want a long lease with renewals. As the owner, you can offer exactly that and remove the demolition and relocation clauses that scare lenders.

You then have three paths: sell the practice and the unit together, sell the practice and become the buyer’s landlord, or sell the unit to an investor and lease it back for a few years before you retire. My guide to sell and rent back in Ontario explains how a leaseback works. An investor will price the unit on its rent and a cap rate, which my post on how commercial property is valued in the GTA explains.

What tax write-offs come with owning versus leasing?

CRA’s capital cost allowance table puts most buildings in Class 1 at 4% a year. Eligible non-residential buildings can get an extra 2%, for 6% in total, if you make the election CRA requires. Goodwill sits in Class 14.1 at 5% for property bought after 2016, which matters if you buy a practice at the same time. Leasehold interests are in Class 13, where the rate depends on the lease terms. Ask your accountant to compare the after-tax cost of owning against leasing over your expected time in the space, including the HST point above.

My take

For a first practice, I usually advise leasing with a strong lease, and putting your cash into the practice. For an established dentist planning to stay put for a decade or more, buying is worth a serious look, mainly because it ends the landlord risk that can cut the value of a practice when you sell. Either way, decide the ownership structure with your lawyer and accountant before you make an offer.

Watch out

Do not assume the HST on a commercial unit is refundable just because you are a business. Dental services are exempt supplies, and CRA limits input tax credits for property used mostly in exempt work. On a large unit, that can be a five- or six-figure cost. Get written tax advice before you waive conditions.

What to do next

Write down how long you expect to stay in this location and what you plan to do with the space when you sell.
Ask two banks for a written indication of what they will lend on the practice and on the unit.
Have your accountant model owning versus leasing, including HST, CCA and the ownership structure.
If you buy a condo unit, make the offer conditional on your lawyer’s review of the status certificate and declaration.
Book a call with me to compare available units for sale and for lease in the areas you are considering.

Need help with this? Talk to me.

I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].

Book a free call Call 833-330-1925

Frequently asked questions

Is it better to buy or lease a dental office in the GTA?

It depends on how long you plan to stay and how much cash you need for the practice. Leasing suits newer dentists and uncertain locations. Buying suits established GTA dentists planning to stay ten years or more, because it removes demolition and relocation risk. Compare the full monthly cost of each, including HST, with your accountant before you decide in 2027.

Can a dentist get 100% financing to buy a commercial unit in Canada?

Some banks advertise it. As of November 2026, TD’s healthcare page lists up to 100% loan-to-value on owner-occupied commercial real estate with a 25-year amortization, and CIBC says banks can often finance up to 100% if affordability is clear. Approval depends on your credit, practice income and the property, and personal guarantees are common.

Do dentists pay HST when buying a commercial condo unit in Ontario?

Often yes. CRA says sales of commercial property are generally taxable, and a registered buyer self-assesses the tax. Because dental services are exempt supplies, CRA allows no input tax credit on real property used 10% or less in commercial activities, so a dentist may not recover the tax. Ownership structure can change this, so confirm with your accountant first.

Should my dental professional corporation own the building?

Not always. Ontario’s Business Corporations Act limits a professional corporation to the practice and related or ancillary activities, such as investing surplus funds. Some dentists own the unit personally or in a separate holding company and lease it to the practice. The right answer depends on HST, liability, financing and your sale plan, so decide with your lawyer and accountant.

Does owning my dental office help when I sell the practice?

Usually yes. When you own the unit, you can offer the buyer a long lease with renewals and no demolition or relocation clause, which buyers’ banks want. A 2025 Oral Health article said buyers typically need 10 to 12 secure years to get financing. You can also keep the unit as an investment after you sell the Ontario practice.

What should I check before buying a dental office condo in Ontario?

Check the status certificate, the declaration and the building’s suitability for a clinic. Under section 76 of Ontario’s Condominium Act, the status certificate shows common expenses, increases, reserve fund assessments and legal actions. The declaration can limit uses, signs and hours. Also confirm plumbing, drains, power and zoning for a dental use before you firm up the deal.

How is a dental office building written off for tax in Canada?

Through capital cost allowance, not as a one-time expense. CRA puts most buildings in Class 1 at 4% a year, and eligible non-residential buildings can get an extra 2%, for 6%, with the required election. Goodwill from a practice purchase is Class 14.1 at 5%. Ask your accountant to compare this with leasing over your expected years in the space.

Can I lease my dental office unit to the buyer when I sell my practice?

Yes. Many owners in Ontario sell the practice and keep the unit, becoming the buyer’s landlord. You can offer a long lease with renewals, which the buyer’s bank will want, since CIBC says practice loans usually do not run past the remaining lease term. Later you can sell the leased unit to an investor. Have a lawyer draft the lease for both sides.

Are dental office units for sale in the GTA easy to find?

Not always. In my experience, many of the best clinic units in GTA plazas and medical buildings are offered only for lease. Look at commercial condo buildings, medical office buildings and older plazas, and check zoning, plumbing and the condo declaration for each. In 2027, start the search early and line up financing before a good unit appears.

Buying vs Leasing a Dental Office in the GTA: Which Makes Sense?