Nursing home loan
The nursing home loan is an optional element of the Fair Deal Scheme. It is an option if the person in nursing home care has assets including land and property. With a nursing home loan, they can delay paying for their care until after their death using these assets to secure the loan.
The nursing home loan can be applied for during the initial application stage or anytime when resident in a nursing home. Applying for the optional nursing home loan during initial application will ensure that your loan and fair deal funding are approved from the same date. You can apply for the optional nursing home loan and if you are approved, you do not have to avail of if you change your mind.
Repaying the nursing home loan
The nursing home loan will need to be repaid after death. You can choose to repay this any time before death.
You will need to repay the loan immediately if:
- you sell or transfer your property (you must notify your Local Nursing Home Support Office within 10 workings day of the sale or transfer)
- you or your partner declare bankruptcy
- you provide false information in the application
- repayment of the loan is paid to Revenue
Further information is available on how to make payments on Revenue's website.
We will notify the relevant person when the loan repayment is due. The consumer price index is applied to the amount due.
After the death of the person in care, the loan must be repaid within 12 months. If the loan is not repaid within 12 months, interest will be applied. The interest will start from the date of death.
If the property is sold or transferred when a person is still in care, the loan must be repaid within 6 months of the date of sale or transfer. Interest will be charged with effect from 6 months after sale.
Deferring repayment of the nursing home loan
The loan becomes repayable on death. Payment can be delayed in certain cases. A partner, relative or connected person may apply for a deferral of the loan repayment. An application will need to be made to the Nursing Home Loan Support Office. People who may apply include:
- your spouse or partner
- your child under the age of 21 (or your spouse’s/partner’s child)
- your child if their assets do not exceed €36,000
- your sibling if their assets do not exceed €36,000
- a relative in receipt of a disability or similar allowance, blind person’s pension, or the State pension (non-contributory), or whose income doesn’t exceed the State pension (contributory)
- a relative who is in receipt of a foreign pension or allowance similar to those outlined above
- a relative who owns a building to which the principal residence is attached (for example ‘a granny flat’)
- any person who cared for the person in care prior to the latter entering the nursing home (this is defined by relevant social welfare payments such as carer's allowance)
Individuals other than a spouse or partner are termed 'connected persons'. They may apply for a deferral in loan repayment. They must satisfy the following conditions:
- the house must be their only residence
- they must have lived in the house for not less than 3 years preceding the original application for the Nursing Home Loan
they must not have an interest in any other property
The loan must be repaid within 12 months of the date of death of the person who applied for the deferral of the loan.
If circumstances of the connected person change, the loan must be repaid. For example, if the property is sold or they longer live in the house.
Contact the National Nursing Home Loan Office for further information: 057 931 8400