Many Australian seniors would prefer to stay at home during retirement instead of moving into an aged care facility. If you’re eligible for a Home Care Package but you just need some help with your added expenses or other necessities to ensure comfortable living, a home equity loan might be able to provide a valuable assistance.
Are You Eligible for a Home Care Package?
In general, the Australian government will assess your eligibility for a home care package. And once you are assessed as eligible, you will receive a letter of approval from My Aged Care, which contains the level of home care package that you will receive. You will also be placed in a national priority queue for home care packages. Someone will also keep in touch with you to inform you when a suitable package is already available.
While waiting for your home care package, you can begin searching for accredited home care providers in your area and work on the numbers. Remember, not all providers are the same, so you must meet them to level your expectations. This is also a good chance to see the available services that they can offer.
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Your Home Care Package May Not Be Enough
Once a home care package becomes available, My Aged Care will inform you about the details of the services. There’s a possibility that the Home Care Package assigned to you may not be enough for your retirement.
Remember, the government subsidises aged care services in Australia. And depending on the results of your assets test, you might be expected to contribute towards the cost of your home care. The cost that you will have to shoulder will depend on the package or funding program.
Meanwhile, your provider may also ask you to contribute towards the cost of the services you receive. Hence, if you have been assessed as capable of contributing to the cost of your services, you should do so before receiving the home care services.
Your home care service provider may ask you to pay the following:
- An income-tested care fee (depending on your retirement income)
- Basic Daily Fee of up to 17.5% of your age pension
While commendable, the Home Care Package may not be enough especially for seniors with reduced income. Many seniors who have already stopped working and don’t have enough fund on their super may find it difficult to make ends meet. Plus, the cost of retirement living can be high as you have to pay for medical expenses and home renovations to allow easy and comfortable living.
Luckily, there are alternative financial solutions available for seniors who are assets rich but cash poor. One of these alternatives is the home equity loan also known as reverse mortgage loan.
What is a Reverse Mortgage and How It Can Help Seniors?
Many Australian seniors have worked hard for years and paid off their mortgage, which comprises much of their wealth.
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Through a reverse mortgage loan, a senior can unlock that wealth – not all of it – but a portion can be used to finance retirement needs including paying off counterpart for home care services. However, seniors can use the loan proceeds in anything they want like paying off their debt, renovating home, or even paying for a holiday.
One great feature of a reverse mortgage is that you don’t have to move out from your home, which makes it a great match for supplementing a home care package.
Consult A Reverse Mortgage Broker Today
Retirement is a crucial phase in life, so it is vital that you consult with an reverse mortgage broker about your finances. For face-to-face financial consultation, or if you want to know more about how you can use a reverse mortgage loan, you can call Reverse Mortgage Finance Solutions at 1800 001 020. You can schedule an appointment with our loan experts who will go the extra mile by visiting you at your home.