Case study: Martin Lynch, La Trobe Financial

The reception has been extremely positive. We have received great feedback from consumers, aged care providers, financial planners, accountants, solicitors and finance brokers. It is clear consumers have been under-served in this area and what we are hearing from advisers is it is refreshing to deal with a specialist lender who can assess each application on its merits and deliver a quick response.

Why was it essential for a product like this to be developed?

Aged care rules are unusual and complex so trying to make standard mortgage and reverse mortgage products fit this sector hasn’t always produced the best outcome for customers.

Tailored products and the ability to speak directly with the credit analyst are a great leap forward for the customers and their advisers.

More broadly, La Trobe Financial has a strong heritage in providing specialist lending solutions to assist Australians in wealth creation through housing ownership.

At the other end of the life spectrum, we have a strong conviction that property can be used as an asset to enhance the quality of life for Australian seniors. We are delighted to be leading way with this financial innovation.

What has been the feedback from brokers?

In a nutshell, intrigued. Brokers are hearing more and more about friends, relatives and customers trying to manage an elderly parent’s transition into aged care and so they want to know more about this innovative lending product that can help with the emotional and financial burden.

This sector is growing and will balloon to $10 billion of required funding in the years to come. Finance brokers are keen to learn more and position their business for the opportunities at lie ahead.

There is clearly a substantial educational requirement for brokers. At La Trobe Financial, our client partnership managers will continue to work, as they have always done, with brokers on education and training.

What has been the feedback from consumers?

Relief is probably the main reaction. Consumers are delighted to find out that there is a product available that can take a lot of the financial stress away from a very difficult situation. Our simplified application process has been acknowledged by consumers as a real point of difference and of course our friendly service provided by knowledgeable staff.

How do you envision the Aged Care Loan to track over the coming months? Do you expect it to grow in popularity?

The amount needed to fund moves into aged care is already $3 billion per year. With demographic changes, this will grow rapidly so a lending solution that helps customers and aged care providers will naturally grow as understanding and awareness of this option also grows. We would expect this to be a $10 billion funding requirement in the years ahead.

Another factor that will drive popularity is the financial benefits to consumers. As the market becomes more educated and compares the different outcomes under different home ownership scenarios, there will be a clear bias to retaining the home during entry to aged care.

Is there anything else you would like to add?

As mentioned above, La Trobe Financial has strong conviction in providing this innovative new mortgage product to fund aged care entry for Australian seniors.

We have a history of serving others and really helping customers in their time of need. This new aged care product very much rings true with our corporate motto “others before self”.

Should brokers or advisers have questions on this product, we are only a phone call away.

To learn more about La Trobe’s new Aged Care Loan, click here.