More Aged Care Reverse Mortgages become available
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Aged Care Loan
April 4, 2016
As the ageing population rapidly grows in Australia, approximately $3 billion per annum is required to fund individuals that will need to move into aged care facilities and will have to pay a Refundable Accommodation Deposit. Such deposits commonly exceed $500,000.
How to fund this payment is a complex problem for many families. Finance Prospects now has access to a great product that can be used specifically to make this payment, reducing the stress for families at a very emotional time. It is easy for the customer and their family to set up, making the transition to aged care less complicated.
Loans of up to 50% of the property value available
No capital repayments required during the term of loan
No interest payments required until the total loan balance increases to 140% of the initial amount borrowed
Available for a term of up to 7 years
Can be set up under an Enduring Power of Attorney
Flexibility to rent or sell the property without time pressure
For more information please contact us at Finance Prospects now on 0415 773 178 or jessica@financeprospects.com.au
The Costs of Aged Care When moving into aged care.
A resident is required to pay either a Refundable Accommodation Deposit (RAD), which is a lump sum, a Daily Accommodation Payment (DAP) or a combination of both. The amount payable is published on the aged care facility’s website, with RAD’s commonly in excess of $500,000. As the name suggests, the RAD is refunded when the resident leaves the facility, whereas the DAP payments are not. The facility will invest the RAD, but only the initial capital amount is returned (less any outstanding fees). The Federal Government provides a guarantee for repayment of the RAD. In addition to this a resident will need to pay a Basic Daily Fee, a Means Tested Care Fee and sometimes an Additional Services Fee. Rather than just relying upon a property sale to fund a RAD the Aged Care loan provides a number of significant emotional and financial benefits for the borrower and their family.
Source: La Trobe
Read more at: http://financeprospects.com.au/aged-care-loan/