What is an Accommodation Bond Loan?

An Accommodation Bond Loan is designed to cover the cost of moving into aged care. The 3 key features of the RBS product are:

• You must be aged over 65
• You can borrow up to 40% of the value of your home
• The loan is available for a maximum of 5 years

The reason that we have a relatively short term for the loan is to enable us to lend you the amount you need. If you need a smaller amount and want a longer term then we have other solutions available, so please contact us on 1800 99 99 59 and our team can discuss the options available.

Property Equity and Reverse Mortgage Debt diagram

The graph and table below are based on a 75 year old borrowing $160,000 (40% of the value of their house) and fixing the rate at 9% for 5 years. In addition it assumes that the value of the property will increase at a rate of 3% per year.

Term	Age	Projected Property	Projected Loan Repayment	Projected Equity
0	75	400,000	160,000	240,000
5	80	463,710	250,509	213,201

The table shows that in this instance the amount of equity available in the property will have reduced to $213,201 from the original $240,000 For a personal illustration of your own situation please speak to your adviser or use the online Accommodation Bond Loan calculator. Or simply give us a call on 1800 99 99 59.