Reverse Mortgage To Fund More Aged Care?
22 March 2017
Recent changes in aged care rules provide senior Australians better flexibility on the type of help they can receive while staying in their own home rather than moving into an aged care facility. The home care options provide more choice and are designed to offer more value for money because of this ability to choose.
If you or your loved one needs home care, it is crucial to know what you might be entitled to. Many seniors, as well as their families, are not aware of the availability of financial aid towards aged care services at home, which could include domestic help, nursing, podiatry, home renovations, or even help with the weekly grocery shop.
Know Your Eligibility for a Home Care Service
Around 3.7 million Australian seniors are potentially eligible to receive subsidies for home care services from the government. You may be eligible for different financing options, which includes several levels of home care service ranging from $8,000 to $ 50,000 per annum.
Basically, you will receive a formal letter from My Aged Care if you are identified as eligible to receive a subsidised home care package. However, you will not immediately receive the service, because your name will be placed on a national queue. An aged care representative will call you once a suitable package is available in your area.
Government Subsidy May Not Be Enough
While the home care changes will allow seniors to stay at home to receive aged care, the financial subsidy may not be enough to cover all expenses and depends on an asset test. Wealthier seniors may not be eligible for any home care service benefits. If you have been evaluated as capable of shouldering a portion of the home care services, your home care provider may ask you to pay first either a basic daily fee or an income-tested care fee before they provide you with assistance.
In reality, many seniors, especially those with reduced income may still struggle despite of receiving government subsidy. It’s important to remember the cost of retirement living could increase in the next few years. The rising prices of basic goods and increased expenditures for medical treatments can make it hard to make ends meet.
Heartland Can Help
As part of the alternative solution, seniors can take a Reverse Mortgage loan from a specialist provider such as Heartland. Taking out a reverse mortgage to assist with aged care services can give flexibility and breathing space for seniors and their families during a stressful period of change. Heartland offers a variety of product options to help seniors unlock their home equity and access needed cash for important expenditures during retirement such as aged care. The loan proceeds can also be used to supplement retirement income, regardless of the pension level, to cover home care costs not included in the government subsidy.
Information provided is accurate as at 22 March 2017 and may change from time to time