Making the decision to move into residential aged care is a significant step, and one of the biggest concerns is often how to fund it.  

At Heartland Bank, we want to reassure you that selling your family home isn’t the only option. There are financial products such as our Reverse Mortgage Aged Care Option that are specifically designed to help fund residential aged care costs, should you wish to keep your home.  

Why keep your home? 

Keeping your property preserves its value and memories for future generations. It also provides flexibility, allowing you to make decisions on your terms. You can sell your home when it’s right for you, not because you have to.  

Many seniors and their families also worry about being “stuck” in aged care after selling their home. However, a reverse mortgage can also help fund home care if you choose to move back home, providing the support you need without selling your property. 

Aged care costs: what you need to know 

Aged care costs can vary depending on factors like the type of care and accommodation required. Here’s a quick overview of key expenses: 

• Refundable Accommodation Deposit (RAD): This is a one-off lump sum payment you make to secure your accommodation in an aged care home. It’s called “refundable” because the full amount is returned to you or your estate when you leave the facility, provided no additional charges apply. 

• Daily Accommodation Payment (DAP): If you prefer not to pay the RAD upfront, you can choose to pay a daily fee, similar to a rent payment. This fee is ongoing and isn’t refundable when you leave the facility. 

• Other care fees: These are ongoing charges for personal care and services, which vary by facility and the level of care required. These fees are not refunded. 

For more details on costs, visit myagedcare.gov.au. 

How our Aged Care Option works 

Our Aged Care Option provides flexible financial support for those transitioning into aged care. Available to all customers subject to eligibility and borrowing capacity, it offers: 

• Up to 50% of your home’s value based on your age.  

• A 5-year loan term. 

• Flexible payment options such as lump sum and regular payments. 

• Payment for major aged care expenses such as the RAD or DAP. 

• Payment for other expenses such as home care, home improvements, debt consolidation, or day-to-day expenses. 

Unlike many people who feel they need to sell their home to pay for aged care, our Aged Care Option allows you to borrow against your property, providing both financial and emotional benefits. You can sell your home when it’s the right time for you, rather than when aged care is required, offering greater flexibility and peace of mind. 

Real life example: Sue’s aged care solution 

Sue, 89, used our Reverse Mortgage Aged Care Option to cover her $450,000 RAD and $97,800 in ongoing care expenses, all while keeping her home. 

Read Sue’s full story here.  

Support services 

Here are some government services that can assist with your transition to aged care: 

• My Aged Care: Access aged care services and assessments. Visit www.myagedcare.gov.au or call 1800 200 422. 

• Department of Health and Aged Care: Aged care policy, funding, and program updates. Visit www.health.gov.au/aged-care or call 1800 020 103. 

• National Aged Care Advocacy Program (NACAP): Advocacy for the rights of people receiving aged care. Visit www.agedcarequality.gov.au/advocacy or call 1800 700 600. 

• Centrelink (aged care support): Financial support and guidance on aged care-related benefits. Visit www.servicesaustralia.gov.au or call 132 300.  

• Australian Government Disability and Aged Care Information (ADAC): Supports older Australians with disabilities. Visit www.ndis.gov.au or call 1800 800 110. 

• Carers Australia: Support for family carers. Visit www.carersaustralia.com.au or call 1800 242 636. 

Get in touch 

If you’d like more information or would like to discuss transitioning to our Aged Care Option, get in touch with our team on 1300 889 338 between 8:30am and 4:30pm EST/EDT Monday to Friday. 

Applications are subject to eligibility and assessment. Terms, conditions, fees, and charges apply. Any advice is general and doesn’t consider your personal situation. Credit provided by Heartland Bank Australia Limited ABN 54 087 651 750 (Australian Credit Licence 245606) or ASF Custodians Pty Ltd ABN 49 106 822 780 (Australian Credit Licence 386781).