Using Aged care reverse mortgage
In 2014 the Living Longer, Living Better reforms were introduced by government to improve the accessibility, sustainability, and quality of Aged Care in Australia. However, there is a downside for consumers: higher nursing home costs.
Nowadays, if you have a family member going into Aged Care, you may confront several fee layers:
- Refundable Accommodation Deposit (RAD)
- Daily Accommodation Payment (DAP)
- Means-tested daily fee
- Daily care fee
The RAD is often the most difficult to pay. It’s an upfront lump sum payment to the nursing home, and families are often shocked to discover they may need to raise between $300,000 and $500,000, and even more in some areas.
Most people think selling the family home is the only option. This can be a distressing outcome for the family. However, in many cases the house can be retained by using a Reverse Mortgage loan to fund Aged Care entry costs.
Pay for your Aged Care accommodation with a Reverse Mortgage from Heartland
If you or an elderly family member have limited available cash to pay for a RAD or other aged care fees, it is now possible to avoid selling the home.
Heartland Seniors Finance has developed the solution you need.
Depending on age, a Heartland Reverse Mortgage ‘Aged Care Option’ can release as much as 45 per cent of the home value and is one of the few specialist Aged Care Reverse Mortgage loan products available in Australia that can offer an important funding alternative to the elderly and their families.
With flexible terms, no need for regular repayments, and other benefits to consider such as a potentially lower impact on the aged pension (compared to selling the house to pay for Aged Care costs), our Aged Care Reverse Mortgage product may save you and the family a substantial sum over time1.
1 IMPORTANT NOTICE: This information may change from time to time. This information has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on this information, consider the appropriateness of the information having regard to their individual objectives, financial situation and needs and, if necessary, seek appropriate professional, financial and taxation advice. Applications are subject to our normal loan approval. Full terms and conditions will be included in any loan offer. Fees and charges are payable. Credit provided by ASF Custodians Pty Ltd or Seniors Finance Custodians Pty Ltd.