An Aged Care Accommodation Bond loan provides a flexible solution for senior clients who wish to retain the benefits of owning their own home and at the same time secure a place in a residential aged care facility of their choice.
It enables you to continue to own your own home, whilst renting it out to generate additional income, allow family members to move in, or simply arrange a more orderly sale of the property. It also enables you to retain your Centrelink entitlements for longer.
There is no requirement to make loan repayments over the life of the loan unless you choose to do so. Interest fees and charges are capitalised to the loan and repayment is deferred until the property is sold, the borrowers are no longer living in the house, or the borrower(s) has passed away.
Borrowers must be 70 years of age or older and the family home must be unencumbered. Lenders do apply strict conditions to these loans including a requirement to seek independent financial and legal advice. Speak to aged care finance expert David Dornseiff for further information and a confidential no obligation discussion on your options.
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