If owning your former home puts you over the Asset Threshold and your other assets are under it, you may be able to get a government funded Residential Care Loan to cover your fees.
Applications are considered case by case, are discretionary and must fit the scheme’s criteria. You will need to pay privately for your care while this is processed. There may be costs associated with the loan process, such as lawyer’s fees, and you are responsible for these. They are not included in the loan.
If approved, you will need to sign a Residential Care Loan Agreement. The loan will be secured over your former home by lodging a caveat against its title. If your former home is a unit in a retirement village and your ‘title’ is a Licence to Occupy, the loan will be secured against the termination proceeds due to you. You will need to assign your interests in the termination proceeds to the Crown and this will be recorded in the loan agreement. The operator of your village will also need to agree to this arrangement.
The loan is generally repayable within 12 months of your death or when your home is sold, whichever happens first. Payments under the loan stop when an RCS is approved. Application forms are included in the RCS application document, or contact Work and Income on freephone 0800 999 727.
Note: Details may change, individual circumstances vary widely, and some situations can be complex. Please therefore ensure that you get the appropriate advice from Work and Income. You can phone the Residential Care Subsidy Unit freephone 0800 999 727.
Updated: 1 Feb 2023