The Aged Care Loan is available now and aims to support families who are moving a loved one into an aged care facility.
It will fund the Refundable Accommodation Deposit (RAD) required from individuals moving into aged care facilities, which can sometimes exceed $500,000.
The new product will lend up to 50 per cent LVR against the borrower’s primary residence, lend over and above the RAD for property improvements, and will allow interest accrual for part of the loan life.
“This Aged Care Loan is a compelling financial product and one which helps to meet the needs of a rapidly growing ageing population,” La Trobe Financial head of aged care products, Martin Lynch, said.
“Unfortunately, in the years ahead, there will be far more elderly Australians whose retirement savings will simply not be able to meet such large deposits.
“This product will help families fund a deposit efficiently and reduce stress when having to transfer a family member into an aged care facility.”
Mr Lynch is a recent appointment of La Trobe Financial and brings with him extensive experience in equity release mortgage products.
“As innovative leaders in the financial markets, we are very pleased to welcome Martin Lynch to La Trobe Financial and launch this important new product,” La Trobe Financial vice president and chief wealth management officer, Martin Barry, said.
“Martin brings a wealth of experience in equity release mortgage products and we are delighted to have him on board.”
La Trobe Financial will be announcing other new products in the coming months.