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, the downside for consumers is higher nursing home costs. Nowadays, if you have a family member going into aged care you may confront several fee layers, such as:
- 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 aged care facility. Families are often shocked to find they may need to raise between $300,000 and $500,000 - and in some cases even more.
Most people think selling the family home is the only option. This can be a distressing outcome for families. However, in many cases the some can be retained by using a reverse mortgage to fund aged care entry costs.
Avoid selling your home with a reverse mortgage.
If you or an elderly family member has limited available cash to pay for a RAD or other aged care fees there is an option to avoid selling the home. Depending on age, a Heartland Reverse Mortgage Aged Care Option can release as much as 50% of the home value.
It’s also 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 home to pay for Aged Care costs), our Heartland Seniors Finance Aged Care Reverse Mortgage may save you and the family a substantial sum over time.
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 Heartland Seniors Finance Aged Care Reverse Mortgage product may save you and the family a substantial sum over time.
Some helpful Aged Care articles:
Benefits of using a reverse mortgage for Aged Care.
Minimal income requirements required
Government aged pension or superannuation is sufficient.
Flexible cash flow.
Tell us how much you need for your RAD and you may be able to set up a regular advance and/or cash reserve that you can use for other care expenses.
No need to sell your home.
You retain ownership of your home, providing breathing space to make future decisions.
No regular repayments required.
However you can make repayments if you wish without penalties. The debt is ultimately repaid from the future sale of your property, once you decide to sell or after you pass away.