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.
A note on fees
While this loan has no application fee, there is a settlement fee. And if your application is not succesful you will be charged a valuation fee.
|Product Name||Heartland Seniors Finance Aged Care Option|
|Interest Rate Type||Variable|
|Interest Rate (p.a.)||6.20%|
|Comp Rate^ (p.a.)||6.30%|
|Minimum Loan Amount||$5,000|
|Minimum Loan Term||1 year|
|Maximum Insured LVR||50%|
|Loan Redraw Facility||Yes|
|Fixed Interest Option||No|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||Yes|
|Repayment Type||Principal & Interest and Interest Only Options|
|Ongoing Fees||$0 p.a.|
- Fund your aged care costs
- No application fee
- 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.
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: $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.