La Trobe launches aged care loan
Lender La Trobe Financial has launched a loan designed to fund the payment of aged care refundable accommodation deposits.Aged care loans are a variation on reverse mortgages, designed to cater to retirees who want to keep the family home when they move into aged care.Residents who are eligible to pay for aged care have the choice of paying for the accommodation through a daily accommodation payment or a refundable accommodation deposit, or a combination of the two.La Trobe will lend up to 50 per cent of the value of the borrower's primary residence.It will lend above the cost of the deposit for property improvements.The company said in a media release that it would allow interest accrual "for part of the loan life."La Trobe's aged care products business is headed by Martin Lynch, a former director of Australian Seniors Finance.