The Federal Government legislated important changes from 1 July 2014, as to how Aged Care accommodation costs are calculated. The Government’s objective is clearly to shift the responsibility for a greater portion of the cost of care on to the person (and their family) entering an Aged Care facility.
Until recently, there have been few funding options for someone seeking Aged Care. One of the obvious choices has been to sell the family home. This, however, presents problems – especially if the sale must take place in a timely fashion to meet the bed availability of the Aged Care facility. There are also other important considerations including the impact of the sale on Centrelink/DVA pension payments and the distress around the decision to sell.
Now there’s a new Aged Care funding option that’s simple, effective, more economical, stress free and doesn’t involve selling the family home.
A special purpose home loan, known as an Accommodation Bond, has been developed specifically to meet the costs of Aged Care. This is where professional Aged Care advice will make a significant difference to a family’s financial and emotional situation.
The Aged Care Accommodation Bond funding option will:
- Avoid the stressful decision to sell the home immediately.
- Reduce the personal “means tested” (DAP) accommodation facility fee.
- Save money.
- Generate additional income (if the property is rented out), while not affecting Centrelink/DVA pension payments.
- Significantly increase the future value of the Estate of the person in care.
The Aged Care Accommodation Bond has similarities to a Reverse Mortgage. There is no need to make regular repayments and the loan is repaid upon the death of the borrower.
If you want to know how an Aged Care Accommodation Bond will provide an effective funding solution, please phone or respond via e-mail under the Contact Us page.
For further information about aged care, please visit the My Aged Care Government website here.