Patricia Ryan (Kildare South, Sinn Fein)
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175. To ask the Minister for Health if his attention has been drawn to the fact that older people who have equity release loans are ineligible for the fair deal scheme due to a contractual prohibition on further equity charges which are required by the HSE to execute the fair deal scheme; his plans to address the issue; and if he will make a statement on the matter. [26590/22]

Mary Butler (Waterford, Fianna Fail)
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The financial assessment under the Nursing Homes Support Scheme does already incorporate circumstances where a person has taken out an equity release loan (also called a life loan) based on the value of their principal private residence (PPR).

The HSE has advised that it will first of all establish the purpose of an equity release loan before making a decision whether it can be treated as an allowable deduction.  In undertaking a Financial Assessment as part of the application process, the HSE may allow certain expenses against the value of a PPR, including some mortgage charges, provided the monies borrowed as an equity release loan were loaned specifically for the purchase, repair or improvement of the asset. In such circumstances the loan may be treated as an allowable deduction under Cash Assets and Relevant Assets. It should be noted that any deduction is only applied against the value of the principal sum advanced by the life loan as accrued interest is not considered to be an allowable deduction.

In circumstances where the applicant is seeking to avail of Ancillary State Support, also known as the Nursing Home loan, the HSE may seek an independent valuation of the property in question. The terms and conditions of each life loan will also be examined by the HSE to establish the level of risk involved as ancillary state support will not be approved unless the HSE is sure that there is equity remaining in the property following the death of the resident, or other relevant event, that will prove sufficient to recover any monies advanced by the HSE to provide nursing home support. It is important in all cases that applicants provide the necessary documentation requested by the HSE to enable them to make an appropriate decision.

Third-party contractual arrangements between the borrower and a financial institution are a matter for the parties involved. Neither the Department of Health nor the HSE are a party to such contracts. 

Information provided by to the Department of Health by the HSE in relation to these life loans relates to general guidance for assessment. Each individual's circumstances are examined on a case-by-case basis to establish the amount of financial assistance that is available to them.