IBA shared equity contributing to more First Nations home ownership
Indigenous Business Australia (IBA) have made $50 million available over 3 years for shared equity financing to support more Aboriginal and Torres Strait Islander people into home ownership sooner.
- IBA Shared Equity product is a finance option provided in combination with an IBA Home Loan
- The IBA Shared Equity product can cover up to 35% of property purchase price
- $50 million will be available for shared equity financing to eligible customers over three years
Indigenous Business Australia (IBA) have launched the IBA Shared Equity product to support more Aboriginal and Torres Strait Islander people into home ownership sooner. $50 million will be available for shared equity financing to eligible customers over three years.
The IBA Shared Equity product allows customers to purchase a property in their local market where the maximum home loan available is insufficient to meet the full cost of the purchase. The Shared Equity product can contribute up to 35% of purchase price.
Under the Shared Equity arrangement, IBA does not jointly own the property, but it will have a share in the property that is equivalent to the percentage of the property purchase price that was financed using the IBA Shared Equity product. When the customer refinances or sells their home, IBA receives a percentage of the property value at that time relative to the IBA Shared Equity product, along with the outstanding balance of the IBA home loan.
Over the first 12 months of piloting the IBA Shared Equity product, IBA assisted 56 customers to purchase a home in their preferred location, and is looking forward to assisting even more customers this year.
Gamilaroi woman Abbey, a new homeowner, says that the IBA Shared Equity product was key to her achieving her home ownership dreams.
“I had a really supportive home loan officer. She had done lots of research and could just see there was nothing in the area for the price I had been approved for. That’s when she came to me with the opportunity of the IBA shared equity product,” Abbey said. “That was the game changer for me, it made it all possible.”
This isn’t just a home; this will be a change in my family’s bloodline. An opportunity to create a safe space and intergenerational wealth and healing for hopefully my future jarjums and their jarjums.
Without IBA I don’t think I’d have had a chance of becoming a first homeowner.
IBA Deputy CEO, Sean Armistead, said: “The IBA Shared Equity product is a fantastic initiative that was created in response to the growing housing crisis. It can make home ownership achievable for some First Nations people who otherwise could not afford to buy in their local area.
It’s not for everyone, but for those that may benefit, our friendly home lending team can work with you to review whether it’s the right option.
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