There is provision within the Fair Deal process to make an Application for the Nursing Home Loan – and this is entirely optional.
What does an Application for the Nursing Home Loan mean for you?
Fair Deal assesses how much you will need to contribute to the cost of care, and if you have assets such as owning your own home/land then this is considered.
Where your assets include your home, the contribution based on your principal residence may be deferred by applying for ancillary state support (also known as Nursing Home Loan).
This means that you do not have to sell your home during your lifetime.
Your spouse/partner can also apply to defer the repayment of the loan for their lifetime.
In certain circumstances, an application for deferral of repayment of the loan can be made by other relatives.
In order to apply for this Loan consent is required from you to have a Charging Order registered against your asset; and if you are part of a couple your spouse/partner must also provide written consent.
The Charging Order is a simple type of mortgage that secures the money loaned by the HSE.
Subject to your consent the HSE is responsible for making the Charging Order, registering it against your asset and making the Nursing Home Loan payments on your behalf. The HSE may need to check with you about the information on your application but you will not need to do anything else except communicate to the HSE on any information required.
If a person does not have the capacity to consent to the Nursing Home Loan and the Charging Order, a representative will need to be appointed to act on the person’s behalf.
If approved, the HSE will pay the money to the nursing home on your behalf and it will be collected after your death. You may choose to apply for this element of the scheme at the date of your initial application, or at any stage while being a resident in the nursing home.
Depending on your circumstances, we suggest that you take independent legal/financial advice if applying for the Nursing Home Loan.