Retirement villages vs aged care
Retirement villages and aged care aren’t the same thing.
Our Refundable Contribution contract explained
Tuesday, 17 June 2025
This contract keeps things simple and stress free.
Looking for a simple and secure way to move into retirement living?
Our Refundable Contribution contract option gives you just that. There are no exit fees, no legal costs and no need to worry about selling your home.
If you’re looking for simplicity and financial confidence, this option takes the guesswork out of planning for the years ahead.
What is a Refundable Contribution?
A Refundable Contribution is exactly what it sounds like: a contract where you pay an upfront amount to live in a village. When you leave, that amount is fully refunded.
It’s a simple, transparent option that offers financial certainty. While the upfront cost is higher than some of our other contracts, there are no exit fees and no unexpected costs later on.
You’ll know exactly what you’re paying and exactly what you’ll get back, giving you peace of mind from day one.
💡Good to know: Use our interactive map to find villages offering this contract option near you.
How does it work?
*The only time extra costs may apply is if there’s serious damage or wear and tear beyond normal use - in that case, you may need to cover the cost of repairs.
With this contract option, you'll pay a one off amount upfront to secure your home in one of our villages. Each month, you'll pay a service fee to cover things like maintenance, gardening and access to village amenities.
➡️ Read more about what our monthly service fee covers.
When you leave, we’ll return your full Refundable Contribution (minus the one off establishment fee) within 90 days after the termination date. There’s no need to sell the home yourself and there will be no exit fees, legal fees, selling costs or reinstatement fees to worry about.
💡Good to know: The one off establishment fee covers the administrative set up of the contract and legal fees. It also includes Keyton’s contribution to the long term maintenance fund (LTMF)* and a contribution towards selling and reinstatement costs based on today’s market rates. Importantly, there’s no Deferred Management Fee (DMF), ongoing administrative fees, legal fees or reinstatement costs when you leave.
*The long term maintenance fund (LTMF) applies to retirement villages located in Victoria only.
The only time extra costs may apply is if there’s serious damage or wear and tear beyond normal use - in that case, you may need to cover the cost of repairs.
Here’s a quick example:
Mary chooses a Refundable Contribution contract. She pays $550,000 upfront to move into a freshly refurbished home in a Keyton village. This payment gives her:
✅ The right to live in the home
✅ Access to all the village amenities and services
✅ Peace of mind that her $550,000 will be fully refunded when she leaves
She also pays a monthly services fee to cover things like maintenance, gardening and access to village facilities.
Five years later, Mary decides to move out of the village to be closer to family. She has not caused any damage to her unit. Because she’s on a Refundable Contribution contract, she:
- Doesn’t pay any exit fees
- Doesn’t have to sell the home
- Gets her full $550,000 refunded back to her account
This option gives Mary the freedom to enjoy village life without worrying about how to manage things later on.
What are the benefits?
This contract option is designed to give you financial peace of mind. Here are a few reasons why many people find this option a great fit for them.
✅ No exit fees: You won’t be charged any deferred management fees when you leave - your contribution is refunded in full.
✅ Know where you stand: You know upfront exactly what you’re paying and what will be returned when you leave.
✅ Planning made easier: For many, it’s comforting to know their estate will be passed on clearly, without complex deductions or surprises.
✅ Peace of mind: You get to enjoy village life without worrying about losing money when you leave.
What to keep in mind
Like all contract types, there are a few things worth considering before deciding if the Refundable Contribution is the right fit:
ℹ️ Higher upfront cost: Because there are no exit fees, the Refundable Contribution is usually higher than a standard entry price under other contracts.
ℹ️ No capital gain: The amount refunded is the same as the amount you paid. You don’t share in any increase in property value.
ℹ️ Not available everywhere: Take a look at our interactive map to see which villages offer this contract option.
How does it compare to other contracts?
We offer four different contract types - each with different benefits, depending on your financial goals and stage of life. Our Refundable Contribution stands out for its simplicity and security. You’ll always know where you stand.
💡Take a look at this article to learn more about the fees that apply to other contract types.
Is a Refundable Contribution right for you?
This option could be a great fit if | Consider another contract type if |
✅ You want financial clarity ✅ You’d prefer to avoid exit fees ✅ You want to leave a known amount to your estate | ➡️ You’re hoping to share in potential capital growth ➡️ You’d prefer lower upfront costs ➡️ You’d like a more flexible option |
Looking for other options?
A Refundable Contribution offers great peace of mind, but it’s not the only choice available. Depending on your circumstances, one of these other contract types might suit you better:
- Prepaid Plan: You pay management fees upfront and keep any capital gain when you leave.
- Pay As You Go: You make monthly payments instead of paying a large upfront amount.
- Deferred Management Plan: A lower upfront price with fees paid when you leave, often from the sale price of the home.
💡 Want to compare all contract types? Take a look here.
Need help deciding?
It’s always a good idea to get independent advice before making a big decision. While our friendly team of retirement village experts are always here to help explain your options, speaking with a trusted solicitor or financial advisor can give you extra peace of mind.
➡️Read our blog about finding the right financial advice for retirees.
Make a confident choice
Choosing the right retirement village contract can make a big difference to your peace of mind, both now and in the future. Whether you’re after flexibility, financial certainty, or a simple pay as you go approach, understanding your retirement village contract options is key to making a confident choice for your next chapter.
Want to chat through the contract option that might suit you best? Contact us today - our friendly team of retirement village experts is here to help.
The information contained in this article is general in nature and is not specific to you. You should obtain your own independent legal advice before entering into any of our contracts.
For more information about the lifestyle and support offered at our retirement villages, call our customer service team on 1800 550 550 or send us an email here.
If you think your family or friends might enjoy this article, please share it with them.
