Accommodation bonds have been designed specifically to assist those clients looking to move into aged care facilities where a Bond is required by the aged care operator to secure your position within the facility. Many people are frustrated at the amount required in many cases, and often don't have the readily available cash to pay the bond. An accommodation bond provides you with that cash and is provided by the lenders by using or releasing some of the equity in your home.
- Clients can potentially afford to secure a place in the aged care facility of their choice, rather than compromising due to lack of available funds.
- Clients continue to own their home, with more choices as to how they deal with the home, including renting it out to generate additional income and capital growth, allow family members to move in or simply arranging a more orderly sale of the property.
- Clients can move back into their home if they choose.
- There is no requirement to repay the loan until the property is sold, vacated, or you pass away.
- Using an Accommodation bond ensures that the family home can stay in the family.
Conditions apply such as you must be at least 70 years of age, and own your home. Also the borrower must be single, widowed or the last remaining resident in the family home (in the case of couples). For a couple both living in the family home where one partner wishes to move into residential aged care, a reverse mortgage can provide similar benefits.
Voluntary payments can be made at any stage but some costs may apply. Ask your RFS consultant to clarify this for your situation.
For more information or to make an appointment to meet with an RFS consultant,
Call Now at 1300 88 42 99
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