Specialist lender La Trobe Financial has launched a new loan product targeting Australia’s ageing population.
La Trobe’s Aged Care Loan is designed to help elderly Australians moving into aged care facilities cover the deposit required by the facility to move in, known as the Refundable Accommodation Deposit (RAD), which can commonly exceed $500,000. According to La Trobe, approximately $3 billion per annum is already required to fund individuals moving into aged care facilities.
The new product will lend up to 50% LVR against the borrower’s primary residence, lend 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’s head of aged care products, Martin Lynch
“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.”
Lynch recently joined the La Trobe is the head of aged care products as the specialist lender looks to innovate the aged care space.
“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 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. He is a former chairman of SEQUAL the reverse mortgage industry peak body and was twice listed by the Mortgage Professional Association – MPA magazine as one of the ‘Hot 100’ in the Australian mortgage industry.”