Can I use a Reverse Mortgage to Obtain a Deposit Bond?

Yes, some lenders will allow you to use the equity in your property to meet a Deposit Bond obligation for residential aged care.

Accommodation Bonds are often required at short notice and it is comforting to know that you don’t need to sell your home to meet an immediate need.

An Accommodation Bond may also afford you a place in an aged care facility of your choice, rather than compromising due to lack of available funds.

The property remains yours, you are free to rent it out for additional income or allow a family member to move in.

An Accommodation Bond, together with your home and with any rental income, is asset test exempt [for a period of time], allowing you to retain Centrelink entitlements for longer.

There is no requirement to repay the loan until you sell, the property is vacant for more than six months or the borrower has passed away. You can however repay the loan at any time you choose.

The minimum age of the borrower moving into residential aged care is 70 and must be either single, widowed, or in the case of a couple, be the last remaining resident in the family home.

Accommodation Bond LVR Table;

When an Accommodation Bond is required, it is often a difficult time for you and your family, we at Reverselink understand & respect this. We will ensure your next of kin are fully aware of the options available and assist in making the process as easy as possible.