Aged Care Placement | Senior Relocation

MPIR RAD DAP Interest Rate Reducing October 2019

Posted: 14th August 2019

MPIR RAD DAP Interest Rate Reducing October 2019

MPIR RAD DAP Interest Rate Reducing October 2019

The interest rate used to convert a Refundable Accommodation Deposit (RAD) lump sum payment to the equivalent Daily Accommodation Payment (DAP) is called the Maximum Permissible Interest Rate (MPIR).

The MPIR rate will reduce by a further 0.56% from the 1st October to 4.98 %.

The dramatic fall is caused by the low interest rate environment and the recent Reserve Bank rate cuts.

This should mean that more residents will opt to pay DAP and retain the value of the exisiting assets (generally a family home).

The implication for the aged care provider will now mean that if a facility is significantly refurbished and at 40% concessional ratio …. Their $57.14/day Daily Accommodation Contribution works out to be an equivalent RAC of $418,797 … meaning that a supported resident will be more valuable to a facility if their RAD price is below $418,797.

Given that the rate was at 5.96% in June of this year, this is a significant change to the rate in a very short space of time.

On an average RAD of $450,000 with a client choosing to pay via DAP only, their aged care fees (and subsequently a facility’s profitability) have dropped by $4,410/yr.

Urgent Aged Care Placement?

Need to talk to someone about arranging an urgent aged care placement?

Contact Us

Need Urgent Placement?

Enquiry Form

What Our Clients Say ...

"Fully Supported" placement into beautiful large private room and ensuite - completed in 10 days "Thank you for being so, so, so helpful with Ian's placement; with love at Christmas Time, Thank you ." Bo.

Residential Placement and Fees Advice "I don’t think Tracy and I will ever be able to thank you enough for all you did for us. I hope Brian will be happy there, it seems a friendly place and he has a very nice room." Mrs Christine C.

RAD Negotiation "Thank you so much for your invaluable assistance and advice in helping place our Mum. We appreciate all your help and knowledge and the fact that you were instrumental in achieving a great outcome with the RAD ! We'll certainly recommend you to our many friends who are likely to find themselves in a similar position in the near future. Warm Regards." Lorraine, Neil and family.

Residential Placement "Thank you so much for the wonderful work you did for us in placing Tony. Wish you all the best in your continuing work." Denise McH.

RAD Negotiation "Thank you for your excellent work with reducing Dad's RAD accommodation payment. Julie and I are thrilled with your results. I hope we can use your assistance again and we will certainly pass on your name to friends going forward. " Libby P.

Senior Relocation - Clearing house prior to sale "Thank you so much for all your help clearing Mum's home and transporting all the boxes to my place. Settlement on Mum's home was on 21st March and the new owners are very pleased with the work you did. Thank you again." Monica B.

Senior Relocation - Clearing house prior to sale "Many Thanks for your care with the tidy up of my parents home in preparation for the sale - we were delighted with your exceptional work." Mary K.

Read More ....

Understanding Your Options

The family information session will provide you with up-to-date and unbiased information about your local residential care options.

Learn More

Finding the Right Aged Care Home

The facility shortlist will help you match the right aged care home to your individual needs and preferences in a timely manner.

Learn More

Negotiating the Accommodation Deposit

The RAD Negotiation service has helped many families reduce the accommodation charges and any additional service fees.

Learn More

Senior Relocation Management Services

The Senior Move Management service will help you to carefully disperse, pack, clean, arrange transport and unpack.

Learn More