La Trobe bolsters aged-care offering

22-Mar-2016

By Sarah Kendell

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Credit specialist fund manager La Trobe Financial has entered the aged-care space, appointing a new head of aged-care products and launching a specialist loan product to help families pay for aged-care accommodation needs.

Martin Lynch, a former chairman of reverse mortgage industry body Senior Australians Equity Release, has come on board as the firm’s head of aged-care products.

La Trobe vice president and chief wealth management officer Martin Barry said Lynch’s significant experience with aged-care lending products was a strong fit for the group’s commitment to innovation in the space.

“As innovative leaders in the financial markets, we are very pleased to welcome Martin to La Trobe Financial,” Barry said.

“Martin brings a wealth of experience in equity release mortgage products and we are delighted to have him on board.”

In addition, the firm has launched its first aged-care loan, which will enable borrowers to release up to 50 per cent of their home’s equity to pay for an aged-care refundable accommodation deposit (RAD).

The loan also comes with the option to accrue interest for a set term and to access additional finance for property improvements.

Lynch said the loan would provide a flexible option for families faced with the sizeable financial burden of helping to fund a RAD for an elderly family member, which could commonly exceed $500,000.

“Unfortunately in the years ahead there will be far more elderly Australians whose retirement savings will simply not be able to meet such large deposits,” he said.

“This product will help families fund a deposit efficiently and reduce stress when having to transfer a family member into an aged-care facility.”

The firm also confirmed it would be launching further products in the aged-care space in the coming months.

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