Heartland Seniors Finance Aged Care Option

Use the equity in your property to fund your aged care with the Heartland Seniors Finance Aged Care Option.

Aged care in Australia can be incredibly expensive. But if you have equity in your home, you can rest easier with Heartland Seniors Finance Aged Care Option reverse mortgage.

Product NameHeartland Seniors Finance Aged Care Option
Interest Rate TypeVariable
Interest Rate (p.a.)6.54%
Comp Rate^ (p.a.)6.64%
Minimum Loan Amount$5,000
Minimum Loan Term1 year
Maximum LVR50%
Maximum Insured LVR50%
Loan Redraw FacilityYes
Fixed Interest OptionNo
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditYes
Repayment TypePrincipal & Interest and Interest Only Options

Application Fee$0
Valuation Feeup to $350
Ongoing Fees$0 p.a.
Settlement Fee$495
Discharge Fee$395

Pros

  • Fund your aged care costs
  • No application fee

Cons

  • There is a $495 settlement fee
  • Repayment options can be complicated

What do I need to know about this loan?

The Heartland Seniors Finance Aged Care Option helps pay the costs of aged care by accessing the equity in your home. The loan can be used to pay the Refundable Accommodation Deposit (RAD), a lump sum deposit to aged care facilities that's refunded to you or your estate when you leave care. It can also be used toward your Daily Accommodation Payment (DAP), the fee you pay for your room in an aged care facility. The loan can also be set aside in a Cash Reserve Facility to take care of your future needs. Or you can choose a combination of the options.

Before taking out a reverse mortgage, it's important to seek independent financial advice on your aged care needs. You'll also need to seek out the advice of a solicitor.

How do reverse mortgages work?

What are the features and benefits of the Heartland Seniors Finance Aged Care Option?

  • Loan amount and loan to value ratio. The Heartland Seniors Finance Aged Care Option carries a minimum borrowing amount of $5,000, but no maximum borrowing amount. You can borrow up to 50% of the equity in your home.
  • Eligibility. This loan is limited to borrowers 60 years of age or older.
  • Payment type. Your payments can be disbursed to cover the cost of your RAD, your DAP or held in a cash facility to take care of your future needs. You can also choose a combination of these three options.
  • Repayment flexibility. The Heartland Seniors Finance Aged Care Option doesn't require regular repayments. Instead, the loan is repaid at the end of a five-year term or when the last borrower passes away. You can repay the loan at any time in full without penalty. Moreover, when you receive the return of your RAD when you leave care, this can be used to repay part or all of your loan.

What fees and charges come with this loan?

  • Valuation fee: up to $350. This fee is waived for properties valued under $2 million.
  • Settlement fee: $495. This fee covers the administrative costs associated with funding your reverse mortgage.
  • Discharge fee: $395. This fee is charged when you close your reverse mortgage account by repaying your loan.

How do I apply for this loan?

If you think the Heartland Seniors Finance Aged Care Option suits your aged care finance needs, click the green button above. You'll be directed to the Heartland Seniors Finance website where you'll be guided through your application. Remember, you'll want to seek out independent financial advice, and you'll need help from a solicitor to review your reverse mortgage agreement.

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Heartland Seniors Finance Aged Care Option

  • Interest Rate

    6.54% p.a.

  • Comparison Rate

    6.64% p.a.

  • App Fee / Annual Service Fee

    $0 / $0

  • Max LVR

    50%

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