How it works
Your assessed contribution has two parts: the part from income and savings, which you pay each week, and the part from property, which you can choose to defer. If you defer it, the HSE pays that part to the nursing home on your behalf and registers a charge against the property with the Property Registration Authority. Nothing is sold and nobody moves out.
Repaying it
The loan is repaid to Revenue from your estate, normally within twelve months of death. It is adjusted for inflation using the consumer price index but no interest is charged. Your family can repay it from the sale of the house or from other funds if they want to keep the house.
Further deferral
If a spouse or partner is still living in the house, or in certain cases a child or relative who was dependent on the house, repayment can be deferred until that person no longer lives there.
Applying for it
Apply at the same time as the main Fair Deal application, in the same form. It takes longer than the main application because the property has to be identified on the register and a solicitor is usually involved. If the applicant does not have capacity to sign, an enduring power of attorney or a court-appointed decision-making representative is needed first, which is the most common cause of a long delay.
Questions families ask
Is there interest on the nursing home loan?
No interest. The amount is adjusted for inflation only.
Can I apply for the loan later?
Yes, but the HSE will only pay the property portion from the date the loan is approved, so it is better to apply at the outset.
What if the property has a mortgage or a life loan?
A normal mortgage does not stop the loan, though the value counted is the full value. A property with a life loan on it is not eligible for the nursing home loan.