Dáil Éireann Debate, Tuesday - 21 April 2026
130. Deputy David Cullinane asked the Minister for Health when changes will come into effect for the fair deal nursing home loan to extend the interest-free repayment period to 18 months; and if she will make a statement on the matter. [28496/26]
View answerThe Department of Health acknowledges that some applicants have, through no fault of their own, inadvertently incurred interest on the Ancillary State Support, commonly referred to as the nursing home loans due for repayment. This is due primarily to delays caused by the probate process.
Currently the nursing home loan must be repaid at least 12 months from the date the applicant leaves the nursing home, usually upon the death of the applicant, otherwise interest will accrue at the prescribed rate.
The Department of Health, following collaboration with the HSE and the Office of the Revenue Commissioner, agreed to extend the repayment period for Ancillary State Support under the Nursing Homes Support Scheme Act 2009 from 12 months to 18 months for those families whose relatives passed away while in Long Term Residential Care.
The primary reason for this request is that the Probate Office is now taking on average 5-6 months to process probate applications. The consequence of this is that it can be very difficult for the Accountable Persons for Nursing Home Loan clients to repay the loan within the 12 month period before interest is chargeable. Once Probate is granted the Executor must distribute the Estate and the property which the charge is held on, must be placed for sale and sold. This can take a number of months and conveyancing of a property can take a long number of weeks, even when all the administration is in order.
This amendment responds to the increasing number of cases in which families are unable to meet the 12-month deadline due to delays in selling the family home. Extending the repayment period would make the NHSS more practical for families, reduce the need for extensions and reduce the administrative burden on the HSE and Revenue. The Department are in discussions with Revenue regarding the progression of this change as quickly as possible.
The Nursing Home Loan, also known as Ancillary State Support (ASS) is an optional feature of the Nursing Home Support Scheme (NHSS) available to participants who own property/land-based assets in the State. It is a loan advanced by the HSE to help people meet the portion of their contribution to the cost of care that is based on property/land-based assets, most typically against the personal residence. This loan is advanced during their time on the scheme, unless the property is sold during that period.
Payment of ASS by the HSE results in the creation of a charge (a simple type of mortgage) in favour of the HSE against the interest of the applicant and his/her partner in the asset(s). The HSE will notify the Property Registration Authority of the charge who will register it against the specified asset(s).
It is advisable to seek independent legal advice before applying for a Nursing Home Loan, however there is no requirement to do so. A Nursing Home Loan may be applied for at any time.
It should be noted that the initial loan amount can increase as it is subject to adjustment at the relevant Consumer Price Index (CPI) amount applicable at the time the loan deferral period ends. This adjustment based on CPI applies in all cases and should not be confused with interest accrued due to late repayment of the loan amount to Revenue.
