A simple way to fund your aged care costs
Macquarie Bank’s Accommodation Bond Loan is designed to fund the bond payment required when people move into an aged care facility, and/or to fund the ongoing costs associated with aged care.
With rates from 6.2% p.a., Macquarie Bank’s Accommodation Bond Loan allows you to protect your equity, enjoy flexible repayment terms, and avoid paying for application or ongoing fees when managing your finances.
The ‘no negative equity’ guarantee and capacity maximisation features will facilitate the management of your loan, and aged care costs.
Things to consider about Macquarie Bank’s Accommodation Bond Loan
This loan caters to retirees by funding the bond payment required to move into aged care accommodation and/or to pay for ongoing costs related to aged care.
The limits for this loan are $20,000 - $1,000,000, and the loan is available for a term of five years.
Your loan amount, or the amount you can borrow, will be influenced by the age of the youngest borrower taking out the loan.
What about LVR and interest?
The minimum borrowing age for Macquarie Bank’s Accommodation Bond Loan is 70 years.
The LVR increases by 2% per year of age until you reach 75, after which the LVR increases by 1% per year of age. For instance, if you are 70 years of age, the LVR will be 20% and when you are 80 years of age, the LVR will be 35%.
The maximum LVR of 45% is applicable for borrowers aged 90 years and over.
Interest is calculated on the daily balance and capitalised to your loan each month in arrears.
When do you make repayments?
No repayments are required during the loan term, however, additional and partial repayments are permitted at any time. Full repayment of the loan is required at the end of the fifth year, or when any of the following take place;
- The mortgaged property is sold or transferred.
- Within 180 days after the borrower has left aged care.
- Within 180 days after the borrower has passed away, or if there is more than one borrower when the final borrower is deceased.
How can you access your funds?
Funds can be accessed by filling out a manual redraw form with Macquarie Bank. You will have online access to your account however you will not able to process any transactions online. You care not able to link a cheque book, cash card or credit card to this loan.
Features of the Macquarie Bank Accommodation Bond Loan
- Protected equity: This safeguards up to 20% of your property’s value which gives you the security of knowing that you have a guaranteed amount of your equity set aside for the future.
- ‘No negative equity’ guarantee: This guarantee means you are protected from owing more than what your property is worth.
- Capacity maximisation: This feature ensures the funds available for you to access are maintained as interest is capitalised to your loan. Borrowing capacity is determined by the youngest borrower’s age, therefore, as they get older they can borrow more. Rather than setting up a new facility in the future, you could be eligible to borrow more depending on how much equity you have and the amount of interest you have capitalised on to the loan.
- No income assessment: As you can only borrow up to 45% of the property value, no income assessment will be required.
- No ongoing fees: Minimise expenditure by not having to pay for ongoing account management charges.
- Flexible repayment structure: You aren’t required to make repayments until the end of the loan term, however, additional and partial repayments will be permitted throughout the course of the loan.
Fees you can avoid
- Application fees: The $0 application fee will see you getting started with no application costs.
- Account management fees: No ongoing account management fees will mean that you can focus on meeting your repayments.
- Early termination fee: There is no fee charged if you leave the loan before the loan term has ended, should your situation change.
Fees you can’t avoid
- Discharge fee: $400. This fee will be charged to cover the expenses when you close your loan account.
- Legal fee: $363. This is a fee to cover any legal costs incurred by the bank when setting up the loan.
How to Apply for the Macquarie Bank Accommodation Bond Loan
If you’re interested in the Macquarie Bank Accommodation Bond Loan, it is recommended that you speak with a mortgage broker, or contact Macquarie Bank directly.
Here are the eligibility requirements you’ll need to meet before you can be approved for this loan:
- Residency & Age: You are required to be an Australian citizen aged 70 years and over.
- Credit rating: You must have a strong credit rating as Macquarie bank will need to be confident that you will not default on your loan.
The following documentation will be required:
- Personal details: You’ll need to provide your current residential address
- Proof of ID: A passport or driver’s license will be required to show that you are an Australian resident.
- Asset information: This includes the details of the property you will be accessing the equity on and also the loan amount you wish to take out.
Macquarie Bank’s Accommodation Bond Loan is an affordable and flexible option for retirees who require assistance with their aged care facility expenses.