ACCOMMODATION BONDS with MELBOURNE MORTGAGE FINANCE

An Accommodation Bond is an amount paid to an aged care provider so seniors can gain entry to an aged care facility. It is basically an interest-free loan that the resident makes available to the aged care provider, the bulk of which must be repaid by the provider when the resident leaves the home or passes away.
Depending on the facility, an Accommodation Bond charge may range from $130,000 to over $400,000. It is designed to cover the cost of gaining access to the facility.

Funding an Accommodation Bond for aged care has usually involves selling the family home. A simple and effective alternative is now available. Accommodation Bonds can usually be arranged within three weeks, allowing the home to be retained by the family.

Historically, in order to raise the funds for a bond, the family home has often had to be sold. This is a difficult decision and will inevitably cause stress if a forced sale has to be made quickly. Many seniors are now aware that they can access some of the equity in their home by arranging a reverse mortgage to meet the accommodation bond requirements of many aged care facilities. This means that the family home, which will usually increase in value, does not need to be sold and can be retained for beneficiaries.