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Housing, property and land

Financial support for Aboriginal people purchasing a home

This page has information on:

Nunga loans
Breakthrough loans
Equity Start loans
Indigenous Business Australia home ownership loans

HomeStart offers a variety of loans specifically designed for low and moderate income households. Some of these are specifically for Aboriginal and Torres Strait Islander people. HomeStart may be able to help you apply for the first home owner's grant and help you negotiate a fair price for the property you want to buy.

Nunga loans

This loan is designed to help Aboriginal and Torres Strait Islanders buy a home.

You may be eligible to borrow up to 97% of the property value or purchase price, whichever is less.

Eligibility

To be eligible for a Nunga loan:

at least one applicant must be of Aboriginal or Torres Strait Islander descent
you must have enough money to pay a deposit of at least 3% of the purchase price
you must have had $1,000 in savings for at least the last three months
you must have enough funds to meet other purchase costs - eg inspection fees.

Repayments

Loan repayment amounts are based on your income and will adjust once a year in line with inflation. If you want to pay back the loan earlier you may be able to make extra payments. Contact HomeStart Finance to discuss your repayment options.

More information about the Nunga loan is available on the HomeStart website or by contacting HomeStart Finance.

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Breakthrough loans

This loan is taken out with another HomeStart loan - eg Nunga loan, to increase the amount of money you are able to borrow. It can increase your borrowing capacity by up to 35% without increasing your loan repayments.

Instead of you paying back this loan, HomeStart will share some of the value of the property when it is eventually sold. HomeStart do not jointly own the property with you and you can buy back some of HomeStart’s share in the property value if you choose to do so.

This loan can be used to buy an existing property in metropolitan and some regional areas, or it can be used to refinance an existing home loan. It can’t be used to build a home.

More information about the Breakthrough loan is available on the HomeStart website or by contacting HomeStart Finance.

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EquityStart loans

This loan is taken out on top of another HomeStart loan - eg Nunga loan, to increase the amount of money tenants living in public or community housing are able to borrow. It can increase your borrowing capacity by up $50,000. The maximum amount that you are eligible for is based on your income and ability to make repayments.

Eligibility

To be eligible for this loan at least one applicant must be the head tenant of a public housing, community housing or Aboriginal public housing property.

Repayments

Repayments for the EquityStart loan only begin when one of these things happens:

the main HomeStart loan has been repaid
the property is sold
the property stops being your main place of residence.

You can choose to make voluntary repayments towards this loan at any time.

More information about the EquityStart loan is available on the HomeStart website or by contacting HomeStart Finance.

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Indigenous Business Australia (IBA) home ownership programs

IBA provide home loans specifically for Aboriginal and Torres Strait Islander people. These loans can be used to buy an existing property, to buy land and build a home, or to make essential improvements to your current home. They can also help you buy property on Indigenous land.

These loans are flexible and have:

low deposit requirements
low interest rates that increase gradually
standard loan terms of up to 32 years with the possibility of an extension to 45 years.

Eligibility

To be eligible to apply:

applicants must be at least 18 years old, and
at least one applicant must be of Aboriginal or Torres Strait Islander descent.

How to apply

Applying for an IBA home loan is a two part process:

registering an expression of interest
applying for a housing loan - you will be invited to do this when funds become available.

Registering an expression of interest

Step 1: Complete an expression of interest (PDF 327KB).

Step 2: Provide proof of income - eg two consecutive payslips or a letter from your employer, or give permission for IBA to get your income details from Centrelink by completing the appropriate section on the form.

Step 3: Provide evidence that you are able to pay legal and stamp duty costs, as well as the deposit - eg bank statements.

Step 4: Provide details of any current land or property that you own that hasn’t been funded by IBA - eg last council rates notice, home loan statements for the last six months.

Step 5: Complete the Aboriginality or Torres Strait Islander descent form (PDF 329KB).

Step 6: Return all documentation to IBA.

Registering your interest in the program is not a formal application for a loan. Your expression of interest will be assessed and, if you are eligible, your name will be added to the expression of interest register.

You will need to contact IBA if:

your income changes
anyone moves in or out of your household
your address or contact details change
you take out any other loans or credit cards
the funds you have available for a deposit changes.

For an alternative version of any documents in this section contact IBA.

Applying for a housing loan

When funds become available you will receive a letter from IBA inviting you to apply for a home loan. A housing loan application will be included with this letter. Complete this application and return it to IBA.

The amount you are eligible to borrow will depend on:

whether you are able to borrow any money from a financial institution - eg bank, credit union
your housing history
your employment status
you living expenses
your ability to pay costs associated with buying a home - eg deposit, legal fees.

An assessment of your personal credit history will be conducted. You can get a copy of your credit file through the Veda Advantage website.

Some applicants may be asked to borrow some of the money from another financial institution - eg a bank, and the rest from IBA. This is called a split loan. IBA will provide a basic housing loan to people who are unable to borrow the full amount from a financial institution. Some of the money is borrowed from a financial institution and the rest from IBA. This will mean you will have two sets of loan repayments.

If you are unable to get a loan from a financial institution, ask them to confirm this in writing and contact IBA for more information on your options.

Once the purchase is finalised you will need to start paying back the loan. If your family conditions change and you are finding it hard to meet your payments, IBA may be able to temporarily reduce your repayment amount. Contact IBA for more information.

More information about IBA’s home ownership programs can be found on the IBA website or by contacting IBA.

Buying property on Indigenous land

If you are interested in buying land or property located on Indigenous land you must first apply for a lease over the land. Contact the Office of Township Leasing, Territory Housing or your local Land Council for information on how to apply for a lease. IBA may be able to help you identify who you need to talk to about this.

Mutual agreement from the Trustees of the land and community members is also required. Land on a community title can be leased for up 99 years.

Once your application for a lease is lodged the property will be valued.

IBA may be able help you with the up front costs of buying a home, including: