How to fund everything My Aged Care doesn’t the right way

When we reach a certain age, we want to maintain our independence while getting a bit of help where we’re not as active as we used to be. That means getting rails put into our homes to prevent slips and falls, scooters if we’re less mobile, and other bits and pieces such as lifts to get up to the second storey of our homes.

Home Care Packages from the Government

As you may be aware, you may be eligible for four levels of Home Care Packages. Level 1, for basic needs, covers you for $9,026.45 per year. This means you’re able to perform most daily tasks. You may need social support, meal preparation help, shopping help, transport, and personal care.

But you may want to prepare for the future – and the wait times for Level 3 and Level 4 home care packages is quite long. It’s quite likely you’ll be offered Level 1 or 2 Home Care in the meantime. If you have a higher income, you also may have to contribute more to your home care fee than not.

If you run out of Level 1 or 2 Home Care, you could be eligible for the Commonwealth Home Support Program, but these are only allocated to people who have exhausted their budgets for Home Care.

Costs of becoming mobile

If you need a mobility scooter for getting around the shops or your neighbourhood, this can typically cost between $2,000 and $6,000 for a small, compact scooter. If you need something that helps you carry loads up steep hills for example, this can cost anywhere between $4,500 and $8,000. If you’re only on Level 1 Home Care, this eats up your budget very quickly.

Installing stainless steel grab rails, non-slip matting, shower seats, Rest-Ezy back rests, banister rails, Modular Grab Rails, and other assistance equipment can also spill over into the high four or even five figures.

How to fund extras in a short time

One of the most economical and easier ways to fund your home mobility upgrades or your mobility equipment is to apply for a personal loan.

With any major purchase, you should look to compare personal loans first, to weigh up what’s out there instead of taking the first offer from your bank which may not be the cheapest option.

Savvy Managing Director and personal finance expert Bill Tsouvalas says that anyone looking for finance should use a personal loan calculator first.

“This means you’ll have an idea of how much you’ll be facing in repayments,” he says. “You’ll need to get your interest rate, your loan term, and how much you need to borrow. Then you can set a solid budget for what you need to buy or cover in terms of mobility equipment.”

“If you are shopping around, make sure you’re looking at comparison rates, not just interest rates. Comparison rates include most of the fees and charges you’ll pay during the loan included in the rate. A really low interest rate might look great, but you could get slugged with huge fees and charges.

Remember you should always consult a financial adviser or professional before making any decision about applying for finance.

Bio: 

Bill Tsouvalas is the founder and CEO of Savvy, one of Australia’s leading financial institutions. He frequently shares his knowledge and ideas on finance, mortgage, money and investment in the media.