Login
ISCOVER
La Trobe Financial officially launched its aged care finance offering in February this year. Vice president and chief lending officer Cory Bannister explains the ins and outs of the product and why these sorts of loans are becoming more necessary.
We pride ourselves as offering the broadest product suite in Australia. However, we see a gap and the “Living Longer Living Better” legislation that came into force in 2014 brought in some significant changes to the aged care sector. One of the outcomes of these changes was that it became financially more appealing to retain the home when moving into care, but then raised the issue of how to fund the move whilst retaining the home.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The Aged Care Loan is a product specifically designed to solve this problem. La Trobe Financial recognised this need and with the ageing population we anticipate that the demand will only continue to grow.
Keeping true to our mantra of “others before self”, we saw an opportunity to really help seniors with this growing problem that is under-served in the market. The development of this Aged Care Loan product is entirely aligned with what we believe in and that is helping others and making a difference.
With an ageing population, brokers will find these types of loans becoming more necessary. In fact, from a broker’s perspective, we expect this product to become mainstream in the not-too-distant future. These types of loans will be new and innovative for most brokers today, but as the ageing population increases the demand for these types of loans will dramatically increase. There will also be more aged care facilities built to meet the demand and more and more loans will be required.
For the broker, the client really is the 45 to 65-year-old client. The person who is appointed the Enduring Power of Attorney. The broker ought to have a reasonable grasp of the aged care sector to be able to offer an appropriate service to their clients. This is where La Trobe Financial delivers the added value to the broker who would like to expand and grow their business entering this sector. We are well equipped to guide the broker and at the same time, the broker expands their product offering.
The amount needed to fund moves into aged care is already $3bn per year. With demographic changes this will grow rapidly too, so a lending solution that helps customers and aged care providers will naturally grow as understanding and awareness of this option also grows.
