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The IBA has specific home loan products to support Indigenous home ownership. Eligible Aboriginal and Torres Strait Islander people can qualify for one of several loan products through the IBA's Indigenous Home Ownership Program. You can also apply for home loans from other lenders too.
Indigenous people living in NSW can also get support in the form of a grant through the Aboriginal Housing Office. In Western Australia, the lender Keystart also offers an Aboriginal Home Loan.
IBA introduced the Indigenous Home Ownership Program (IHOP) to provide financial assistance to Indigenous people and ensure they have access to the property market. Over its history, the IHOP has helped over 18,000 Indigenous families into home ownership.
These home loans and incentives are unique, and have a few features that make them stand out from other home loans:
IBA may only offer you a loan for part of the amount you've requested or need to make your purchase, you will then be required to seek the remainder of the funds from an alternate lender.
Aboriginal people living in NSW may qualify for support through the Aboriginal Housing Office (AHO). There are several grants on offer:
There are income limits for all these grants. You must be an Aboriginal person living in NSW who does not currently own a home.
If you live in Western Australia and are Indigenous, you can take advantage of a Keystart Aboriginal Home Loan. This gives you 2 options: to buy the property in a shared ownership scheme with the Department of Housing, or full ownership of the property. The deposit required depends on the size of the loan but begins at 2% for properties below $480,000. No lender’s mortgage insurance (LMI) is charged.
The maximum amount you can borrow depends on whether or not the property is purchased with the Department of Housing in a shared ownership scheme, or you take full ownership, and where in WA you’re buying the property. The maximum loan term is 30 years.
In a shared ownership scheme, the Western Australia Housing Authority will fund up to 40% of the property's value.
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Can I get a home loan on a Disability Pension???
Hi Jocelyn,
Thanks for reaching out!
Generally, a disability pension is considered a valid form of income by most lenders so a home loan application for someone on a disability pension is not treated any differently from an application where someone services their loan with other forms of income. Your options can be viewed from our pensioner home loans page. Alternatively, you can speak to a mortgage broker who can take your personal circumstance into account and offer you a range of borrowing options.
As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this helps!
Best,
Nikki
Hello,
My partner is of Aboriginal descent and would like apply for a home loan. We would like to know what he needs to prove he is or could someone give me a call?
Hi Sally,
Thank you for getting in touch with Finder.
To apply for an IBA housing loan you must first register your interest by completing the online Expression of Interest Form.
Your partner may be asked to provide proof or confirmation of Aboriginal and/or Torres Strait Islander heritage when applying for Indigenous-specific services or programs like Centrelink and housing assistance (Indigenous-specific). Government agencies will often supply your partner with their particular guidelines, and ask him to complete a form or provide a letter of ‘Confirmation of Aboriginal and/or Torres Strait Heritage’.
The family history research tool can help your partner find evidence of his connection to his Aboriginal or Torres Strait Islander ancestors.
If your partner is eligible, his name will be added to the Expression of Interest Register and he will be invited to apply for an IBA housing loan as funds become available.
IBA will then write to your partner and ask him to submit a Housing Loan Application which will be used to determine whether he qualifies for a loan and the amount he may be able to borrow.
You may also want to know if you and your partner may be able to get assistance from the first home buyers to grant scheme of your state or territory by checking out the guide on this page.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
Hi I’m aboriginal and looking at buying a house needing to know what I would need to apply for a home loan…
Thanks in advance
Linda
Hi Linda!
Here are the eligibility requirements for IBA housing loans:
-Over 18 years of age.
-At least one applicant must be of Aboriginal or Torres Strait Islander descent.
-Must be able to meet minimum deposit requirements, may be able to get assistance from the first home buyers grant scheme of your state or territory.
-Be able to have the capacity to meet housing loan repayments.
-Meet further housing loan requirements that are relevant to your home purchase.
Here are the steps you need to take in order to qualify and apply for an IBA Home Loan:
1. Download and submit an Expression of Interest form, a Confirmation of Aboriginal or Torres Strait Islander Descent form and a completed Consent to use your personal information form, all of which you can find on the IBA website.
2. Along with the forms you will also need proof of income, evidence of your ability to pay legal fees and stamp duty costs, evidence of your ability to pay the deposit and details of current land or home ownership not financed through IBA.
3. If you are deemed eligible, your name will be added to the Expression of interest register and you will be invited to apply for an IBA housing loan as funds become available.
4. When funds become available IBA will contact you and ask you to submit a Housing Loan Application, this will then be used to see if you qualify and how much you may be eligible to borrow.
Hope this helps!
Thanks,
Nikki
If I already have a home loan through iba can I unlock equity in current home to buy investment property using iba
Hi Rene,
Thank you for reaching out to us.
I’m afraid IBA does not grant loans for business or investment purposes. You may want to consider other lenders offering home equity loans. Better still, speak to a mortgage broker who can take into consideration your current situation and find a suitable loan or lender for you.
Best regards,
Liezl
Hello My daughter-in-law is of Aboriginal descent and she and our son have a home which is not now suitable for their new-born baby. They have about $300k equity and now wish to look elsewhere and if possible use the Indigenous scheme, but do not have the capacity to borrow what is needed. might they be eligible under your scheme?..
Thanks Penny
Hello Penny,
Thank you for your inquiry today.
They should be eligible as joint applicants. Please note that only one person is required to meet the required Aboriginal and/or Torres Strait Islander descent. If you wish to know more, see IBA’s guide in applying for an IBA housing loan.
Hope this helps.
Cheers,
Jonathan