Aged care finance

What is the Best Way to Fund Your Aged Care Costs?

FREE guide from Seniors First. Downloaded by thousands of Australians since its introduction in 2008.

Traditionally people have often sold their family homes to pay for entry fees (what were known as ‘Accommodation Bonds). But with the government’s current emphasis on a ‘user pays’ system, retaining their homes and using aged care finance (such as a Reverse Mortgage) is an increasingly attractive option.

In July 2014, the Living Better Living Longer reforms came into force. People moving into aged care are now required to pay one of the following as an ‘entry fee’ for aged accommodation:

Refundable Accommodation Deposit (RAD)
Daily Accommodation Payment (DAP)

The ‘RAD’ is an upfront lump sum payment to a nursing home. The fee is set by the facility, and although the current average payment amount could range from is $300,000 to $400,000, it can be much higher in some areas.

In addition, a new ‘Means-Tested Daily Fee’ has been introduced which may add significantly to your overall care costs if the house is sold. Using a Reverse Mortgage to fund or part-fund your aged care accommodation is now a viable alternative for you.

How Does Aged Care Finance Work?

Looking into the fees and charges associated with aged care finance can be quite confusing. It is beneficial to take professional help before deciding on your aged care finance. Seniors First has some valuable resources and access to a number of lenders who can provide Reverse Mortgages to pay for aged care following the guidelines set by the Government. This allows the borrower to release up to 45% of the home value (depending on the age of the borrower) with no requirement for regular monthly repayment - the interest is capitalised each month onto the loan balance.

The amount borrowed, plus any accumulated interest (including compound interest) and fees are then repaid when the property is eventually sold.

So, for pensioners and retirees who have a limited income, Reverse Mortgages are the preferred method for aged care finance. In some cases, where self-funded retirees have enough income to service a conventional mortgage, Seniors First will recommend a home or investment loan to finance aged care & accommodation.

A Reverse Mortgage loan may be a good solution for aged care finance if:

the family wants to retain the home for emotional reasons
a spouse or family member is still living in the home and a sale is not possible
the resident wants to keep the option of ‘moving back home’
it is a poor property market and a bad time to sell the home
your financial planner recommends this as a strategy to minimise your costs or improve your cash-flow

What Our Clients Say...

Bobby Y.

08:57 16 Feb 26

I found the consultant from Senior first Richard Chapman, was extremely helpful and also very knowledgeable regarding reverse mortgages. He was always available to assist with any of out questions and or concerns. We found this process very smooth and seamless. My wife and I had many questions during this process, which were always handled with patience and understanding. I would recommend Senior First for anyone thinking about a reverse mortgage they make it easy.
Thanks guys.
Bobby Yarbrough

Gina J.

06:58 02 Feb 26

Seema was very professional explaining everything thoroughly and she kept in contact with us throughout the whole process of our Reverse Mortgage. We would definitely recommend her. Thank you for making it happen for us Seema we are now able to do our renovations
Jason & Gina

Ian C.

00:56 02 Feb 26

I have just recently re-negotiated my mortgage with Seniors First. The whole process was made all the easier with Adam Oakley's assistance… always just a phone call away- if not an immediate answer he always called back. A great help - awesome service from Adam - thank you.

Peter de D.

06:16 30 Jan 26

Angela was incredibly helpful and meticulous, always ensuring that we fully understood the implications of our decisions. She was always available whenever we needed clarification, consistently attentive and caring throughout the process. In addition, her reassuring voice gave us confidence and peace of mind.

John J.

23:14 27 Jan 26

I was extremely impressed with Palka. She went above and beyond in providing excellent service. She even answered questions after hours and was always very helpful, getting our mortgage through in the shortest time frame possible. Well done Palka. !

Alan S.

21:48 20 Jan 26

I recently used the services of Seniors First to help me navigate the complex side of reverse mortgage. I found Seniors First to be very knowledgeable and were able to provide me with all the information I needed to make an informed decision. They allowed me the time to considered my options, and there was no pressure to make a decision until I was ready. Pulka provided excellent service. I would highly recommend these guys if you are considering a reverse mortgage.

trevor G.

00:47 20 Jan 26

After reading a lot of online information regarding a reverse mortgage we contacted Seniors First. Richard Chapman was in touch shortly after. He came to our house and spent a couple of hours explaining the process in detail and answered any questions we had. Richard was excellent from start to finish and we always felt comfortable going through the process with him.
Highly recommend this broker.

Josie S.

02:02 09 Jan 26

Seniors First provided plenty of information on the concept of reverse mortgages, also referring us to the government website, for calculators showing scenarios of how the loan and house value would progress. Richard Chapman answered all our quesions in a clear, easily-understandable way and guided us through the process, to ensure that we and our children fully understood how reverse mortgages operate. With Richard's experience we were able to find a lender that suited the kind of loan we would need. We could see that the reverse mortgage would allow us to remain in our own home, and have funds available if needed later for aged care, without selling our home of 25 years and moving away. All in all, a very satisfactory experience with Richard and Seniors First.
Gavin and Josie Swallow

mark T.

01:31 30 Dec 25

I am very happy to recommend Seniors First Reverse Mortgage Brokers, especially Palka as she has been very polite and efficient in all aspects of this process. Always ready to explain thoroughly any questions or doubts I may have had and always with a friendly /no trouble response. Cannot recommend these folk enough,

Cheryl M.

01:38 27 Dec 25

Negotiating a Reverse Mortgage with Adam Oakley was considerably easier than we expected.
Adam was quick to allay our hesitance in dealing with an interstate broker and subsequent technological challenges including biometric ID.
Adam provided sound advice on the product best suited to our circumstances and maintained regular contact with us ensuring we were comfortable with the process and updating us on the progress of our application.
We researched reverse mortgages before committing and were impressed with Seniors Firsts webinars, FAQs and online information.
We look forward to maintaining contact with Seniors First and Adam in forthcoming years in reviewing our loan to ensure that it meets our future requirements.

Ian Y.

02:16 25 Dec 25

I did quite a bit of research on reverse mortgages and also watched at least 6 webinars on line before contacting Seniors First. I was put in touch with one of their brokers (Palka Kumar). She was very professional and knowledgeable about the whole process of setting up the reverse mortgage. I live in Tasmania but this was not a problem and in a matter of weeks everything was approved - I had the ideal criteria for this product and my wife and I are extremely pleased with the entire way the business was conducted. Seniors First know what they are doing and we thank you for all your assistance.

Marg B.

04:51 17 Dec 25

My husband and i have recently used Seniors First for securing a loan for the purchase of a new car. We were lucky to be assisted by Palka who has been wonderful since we first made contact wirh Seniors First. Palka has been incredibly helpful, has explained very clearly what we need to do, and has "held my hand" on several occoasions. Grateful thanks to Palka for her dedication to her clients.

Christine T.

02:08 16 Dec 25

Very good company to deal with. The consultant Adam Oakley was excellent. He was transparent and informative, polite and attentive. Could not recommend highly enough. He made a difficult situation easy and helped us old guys through the technology.

Nigel C.

07:33 10 Dec 25

Thank you, Angela, for your great support in helping us secure a Reverse Mortgage.
You were professional and knowledgeable in all our dealings and kept us in the picture at every stage of the process to ensure a smooth Reverse Mortgage journey.
You also clearly communicated all the options available on Reverse Mortgages so we could make fully informed decisions.
Most importantly, you quickly responded to and answered all our questions ( and there were many ! )
We strongly recommend Angela at Seniors First to all potential clients.

Anthony L.

00:14 10 Dec 25

Right from the beginning Palka Kumar was fantastic. She ensured that we really understood the process, kept us informed, provided the appropriate links. Ensured that we ticked all the right boxes etc.
nothing was too much trouble
Her high level of professionalism and empathetic manner was always reassuring and for that we were fortunate to have her as our broker

How Seniors First Reverse Mortgage Can Help

Senior First can help you to find out how much equity you have in your home, and how you might be able to use it for your needs.

If you want to learn about reverse mortgages in detail, you can download our guide, Reverse Mortgage Secrets.

Get In Touch

Industry Awards & Recognition

Senior's First has developed a reputation as an award-winning Reverse Mortgage broker, and a trusted name among public policy organisations, the aged care industry, senior’s groups, older borrowers and their families.