Home' Australian Ageing Agenda : AAA Spt-Oct 2014 Contents ACS EVENTS 14/15
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Rydges Sydney Airport
18 September 2014
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Quality Hotel Powerhouse
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Soldier Club, Batemans Bay
Rydges on Swanston
28 October 2014
30 October 2014
Victoria Park Function
and Bluestone Equity Release, offer equity release products for
seniors that cannot be used to fund residential care.
AAA takes a look at the products:
Macquarie Group's accommodation bond loan is the only one
directly marketed for aged care. It is available as a lump sum or
monthly draw down, but rather than a reverse mortgage, it is a
five-year term that is repayable at the end of the fifth year.
Dwyer says Macquarie also offers a reverse mortgage product
for seniors, which could be converted to an aged care extension if
the homeowner needed to enter residential aged care.
The Bankwest Seniors Equity Release Mortgage is a variable
rate product which can be used to fund aged care costs, says Ian
Rakhit, Bankwest head of broker sales.
"It is a no regular repayment loan, with interest, fees and
charges all capitalised on the loan. The maximum loan available
is $250,000 with a minimum valuation of $200,000 and each
applicant must be at least 65 years old," he says.
Australian Seniors Finance
Australian Seniors Finance offers a Reverse Mortgage Home
Equity Release product for people aged 60 and over, which
includes options for lump sum payments, regular payments, cash
reserve facility or a combination of all.
"We do have many customers that use the funds to pay for the
care of one partner, whilst the other remains in the home," says
Julie Campbell, Australian Seniors Finance general manager.
However, the product is not suitable if the sole or remaining
homeowner moves out of the home and into residential aged care.
Cambell says it considering offering such a product in the future
to meet the growing demand for accommodation bonds and the
many benefits of maintaining the family home after moving into
care both emotional and financial," Campbell says.
Homesafe Solutions' general manager Dianne Shepherd says its
offering, Homesafe Wealth Release, provides senior homeowners the
ability to release the wealth tied up in their homes without taking
out a loan or entering into a compounding interest arrangement.
"It operates as a shared sale proceeds arrangement where
the homeowner receives a lump sum cash amount up front in
exchange for selling Homesafe a share of the sale price of the
home when it is eventually sold," she says.
A homeowner is not required to sell their home if they move
into a residential aged care facility after a contract has been
entered into, and on the basis it was not the original purpose of
the transaction, but the house needs to be tenanted via a lease
agreement, Shepherd says.
The product is not suitable for a new customer who is the only
owner of the property and seeking to access the equity in their
home for the express purpose of moving into residential care
because the product is designed to be a long-term transaction.
However, it can be used by existing customers who move
into residential aged care, or new customers where only one
party is moving out of the home and into a care facility and one
homeowner remains in the home, she says.
P&N Bank offers a reverse mortgage product called Easy Living
Access Loan for WA homeowners only and who are aged 65 or
over. Corporate communications manager Kerrie Nayler says the
product is aimed at supplementing retirement income and that
it is not currently considering offering any products suitable for
funding residential aged care costs.
Bluestone equity release
Bluestone Group general manager -- Australasia Campbell Smyth
says Bluestone is not currently writing a product suitable for
funding a homeowner's residential aged care accommodation
costs but that it retains a significant back book of loans. n
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