Aged Care Loan
Moving into aged care can come with significant costs, from a Refundable Accommodation Deposit (RAD) to ongoing care and living expenses.
Whether you are moving into aged care yourself, or helping a partner or parent, Inviva can provide a flexible way to access your home equity so you can have the time to plan your next move, without the pressure of selling your home.
A flexible way to fund aged care
Traditionally, Australians have been required to sell their home to meet the costs associated with aged care. However, increasingly, Australians are choosing to access the equity they have built up in their home to fund aged care costs allowing the family to retain ownership of the home and avoid paying costs associated with selling upfront. Inviva’s Aged Care Loan is a great way to access your equity while keeping the home you love.
An Aged Care Loan can be drawn only when you need it which means there are no spare funds sitting in a bank account which could impact government means-testing for aged care fees and/or the Aged Pension. This will depend on your specific financial situation. We highly recommend visiting the Government’s MyAgedCare website or alternatively using an accredited aged care financial advisor for advice on your specific circumstances.
An Inviva Aged Care Loan could enable you to:
- Pay a Refundable Accommodation Deposit (RAD)
- Fund Daily Accommodation Payments (DAP)
- Pay medical or accessibility costs
- Refinance eligible debt secured against the property
- Manage any additional costs during the transition into aged care
- Help a partner make their transition into aged care while you stay in the home you love
- Cover other living expenses
How does Inviva's Aged Care Loan work?
Aged care loans are commonly used for covering the cost of the upfront refundable deposit that many aged care facilities require. However, Inviva loans can also be used for any other approved purpose.
Key benefits:
regulated by the government
For single borrowers moving into aged care, or where no borrowers will be living in the property, a term of 5 years applies.
Alternatively, if one borrower continues to live in the home there will be no fixed term and they will receive our Lifetime Occupancy Guarantee.
Flexible access to your money
Lump sum
Regular payments
Line of credit
A combination
Helping your parent or partner arrange an Aged Care Loan?
You don't have to navigate it alone.
A move into aged care can be a major financial and emotional decision, particularly when you are helping a parent or partner manage their finances.
Inviva is here to help. We’d love to hear from you to see how we could assist you as you work through your options.
If you are acting under a Power of Attorney (POA) or Enduring Power of
Attorney (EPOA), you may be able to help arrange an Inviva Aged Care Loan on their behalf.
Please note that because a loan involving a POA/EPOA requires additional legal review, an additional $600 fee applies, which is charged at settlement.
Want to know more? Read more about Inviva’s Aged Care Loan or give us a call about arranging a loan for a parent or spouse?
Frequently Asked Questions
Can I use an Inviva Aged Care Loan to pay a Refundable Accommodation Deposit (RAD)?
Yes. An Inviva Aged Care Loan can be used to help fund a Refundable Accommodation Deposit, subject to our normal lending assessment and the amount you are eligible to borrow.
What happens if I move into aged care but my partner stays in our home?
If one borrower remains living in the property, the loan will generally be structured as an Inviva Home Equity Release Loan.
This is an evergreen loan, meaning it does not have a fixed term. The remaining borrower can continue living in the property with a Lifetime Occupancy Guarantee.
Learn more about how this could work with a case study.
What is the Inviva Lifetime Occupancy Guarantee?
Inviva’s Lifetime Occupancy Guarantee means we promise that, provided you are not in breach of your loan obligations and the property is the home you live in, you and your co-borrower(s) cannot be removed from the property by us, and we will never force you to sell the property while you reside in it.
Can I apply for an Aged Care Loan on behalf of my parent(s)?
If you have the appropriate Power of Attorney (POA) or Enduring Power of Attorney (EPOA) set-up you can apply for a loan on behalf of your parent(s). Loan applications involving a POA/EPOA involve some additional checks and a legal review of the deed to check it allows for property and financial dealings. Legal reviews of the deed incur a fee of $600 that is added to the establishment fee at settlement.
Do I have to make regular repayments?
No regular repayments are required. Interest is added to the balance, and the loan is usually repaid when the last remaining borrower moves out (if living in the property), you reach the end of the agreed term (if applicable), you sell the home or your estate settles it. You can choose to make voluntary repayments at any time if you prefer to reduce interest and manage the balance.
How much can I borrow?
Inviva offers loans from $50,000 up to $5,000,000 (more by consultation) for borrowers aged 55 years or over.
The maximum Loan-To-Value Ratio (LVR) depends on your age and the value of your property. A 55-year-old can typically borrow up to a maximum LVR of 15% (i.e., up to 15% of their property’s value). The maximum LVR then increases by 1% for each additional year of age. For example, a 73-year-old may be able to borrow up to a maximum of 33% of their property’s value.
As part of the application process, we’ll discuss with you if there are other circumstances that may impact the amount you can borrow or any other conditions.
