What are Indigenous Australian home loans?
While all standard home loans are available to First Nations Australians, the term Indigenous Australian home loans may refer to assistance programs for Aboriginal and Torres Strait Islander people, which could make it easier to:
- Buy an established residential property
- Build a new home
- Improve an existing home.
These programs are typically restricted to properties you intend to live in, not investment properties. Depending on the home you’d like to buy and where you want to live, assistance could come in the form of:
- A home loan with more flexibility for approval and payments
- A smaller deposit
- Discounted starting interest rates
- Co-ownership with a housing authority
- Help with loan establishment costs, such as home insurance and loan fees.
These programs are typically partly or fully funded by different levels of government.
Some of the programs currently offered exclusively to First Nations Australians looking to buy a property include:
State or territory | Programs |
|---|---|
Nationwide | Indigenous Home Ownership Program, |
Victoria | First Peoples Home Ownership Program, |
New South Wales | Aboriginal Home Ownership Grants, |
Queensland | If you live in a council-owned home on Palm Island, |
Western | The Aboriginal Home Ownership Scheme, |
In addition to homeownership programs and pathways available specifically to Indigenous Australians, many state and territory governments offer grants and stamp duty discounts to first home buyers. Meanwhile, programs like the 5% Deposit Scheme and the Help to Buy Scheme can support eligible homebuyers to enter the property market.
In this article, we will focus strictly on the Indigenous Home Ownership Program and Remote Indigenous Housing Loans.
Please see the websites linked above for more information on the other state and territory-specific schemes on offer.
What is the Indigenous Home Ownership Program?
The Indigenous Home Ownership Program is funded by the Federal Government and delivered by Indigenous Business Australia (IBA), assisting Aboriginal and Torres Strait Islander people with homeownership.
Its loans are designed to make it financially easier for Indigenous Australians to enter the housing market and maintain homeownership.
Some of the IBA’s advertised starting interest rates are notably lower than most available in the broader market, and these rise after the first year or two. It says this is to help homeowners adjust to making mortgage repayments and meeting other costs that come with owning a home.
The provider also offers mortgage options to borrowers with smaller deposits, with the minimum a person can put down to purchase a home tied to their annual income.
At the time of writing, loans on offer under the scheme include those for:
- Buying a home
- Buying and renovating a home
- Buying land and building a home
- Buying land (with the condition to build a home within a set timeframe)
- Refinancing an existing home loan
- Previous homeowners buying a new residential home
- Improving a home
What are Remote Indigenous Housing Loans?
Remote Indigenous Housing Loans are part of IBA’s program and assist Aboriginal and Torres Strait Islander people who currently or previously lived in a remote location.
Outside of what’s already offered through the Indigenous Home Ownership Program, Remote Indigenous Housing Loans offer:
- A longer introductory interest rate period
- A grant of up to $13,000 to meet costs for things like legal or financial advice, pest and building reports, property valuations, and initial home insurance costs
- A potential $20,000 grant for house renovations, repairs, and maintenance
To work out if a property is considered remote or very remote, the IBA follows the Accessibility/Remoteness Index of Australia (ARIA).
How are IBA loans different from standard home loans?
Typically, home lenders look at a range of factors when assessing loan applications, such as:
- The deposit the buyer intends to put down
- Each borrower’s income history and expenses
- Their credit history. You can check your credit score for free with Canstar or via the Canstar App.
However, according to the National Indigenous Australians Agency (NIAA), IBA home loans usually require a lower deposit than other types of home loans, and are also typically offered at a lower interest rate, to help Indigenous Australians who face barriers getting a loan from mainstream lenders. A lower interest rate may mean home loan repayments are cheaper than on a similar mortgage from a mainstream lender.
IBA loans also have lower lending requirements—such as minimum income thresholds—than typical loans with other lenders. For example, eligible low-income purchasers could buy a house with a deposit as small as $1,500, while those earning more could need to put down up to 5% of the home’s purchase price as a deposit.
IBA also says it doesn’t charge lender’s mortgage insurance (LMI), establishment fees or annual fees, which other banks could charge.
Although, in some circumstances, IBA states that the loan offered to the borrower may only cover a portion of the cost of buying a home. In that case, borrowers may have to apply for a loan from another lender to cover the remainder of the cost.
How to apply for an Indigenous Business Australia (IBA) home loan
To apply for an IBA Home Loan, you must first submit an Expression of Interest (EOI) Form through IBA’s online portal. If you need help, IBA says you can call them at 1800 107 107.
After submitting an enquiry, a Home Loan Officer will contact you within 60 days. If you’re eligible, they’ll add you to the register.
Once you’re on the register, you’ll be sent an invitation to apply for the IBA home loan. Before registering, IBA recommends attending one of their free home ownership workshops. IBA holds both in-person and virtual workshops about home ownership, creating a budget, understanding credit, as well as what you need to know once you’re a homeowner.
How much of a deposit do I need to get an indigenous home loan?
The deposit you need to buy a home with an IBA loan depends on your income. You are also able to use other grants and incentives, such as a first home owners grant, to help fund your deposit. Keep in mind that these deposit amounts and gross income brackets are subject to change.
Home buyer deposit requirements:
At the time of writing, IBA’s website lists the minimum amount of deposit required for first home buyers, based on gross income (before tax and deductions) per year as:
Annual | Minimum |
|---|---|
Up to $90,659 | $1,500 |
$90,660–$149,321 | $3,000 |
$149,322–$175,985 | $6,000 |
From $175,986 | $9,000 |
Source: IBA, as of 26 May 2026.
If you’re not a first home buyer, IBA says “previous homeowners must contribute any remaining proceeds from a recent sale of their previous home”.
Other types of loans:
Other types of IBA loan products, like a loan for home improvement and property settlements or refinancing home loans don’t have minimum deposit requirements.
As of 26 May 2026, a person taking out a home improvement or property settlement loan through IBA needs to hold at least 5% equity in their home (meaning their loan balance can’t be more than 95% of their property’s value). Refinancers need to hold at least 10% equity in their home.
Other potential costs
You will generally have to pay the other costs associated with setting up the loan, including:
- Stamp duty
- Valuation fees
- Building and pest inspection costs
- Conveyancing fees.
Financial help may be available through IBA or other government schemes to eligible applicants to help cover some of these costs.
How much can I borrow under the Indigenous Home Ownership Program?
How much you can borrow under the program depends on your financial situation and circumstances, like your income and how many dependents you have.
IBA might limit how much a person is able to borrow through it, but if that’s not enough to buy the property they have their eye on, that may not be the end of the road. The IBA says that if it’s not willing to provide a loan for the full amount needed to buy a particular property, the homebuyer may be able to borrow the rest from another lender.
If an IBA home loan can’t provide enough funding to buy a home where you live, the IBA Shared Equity product may be another option. This pathway sees the IBA contributing up to 35% of the purchase price of a home (or up to 50% for eligible single carers). The homebuyer is then required to return a portion of the proceeds to the IBA if they sell the property or refinance their home loan in the future.
How much interest is charged on an IBA home loan?
Interest rates on an IBA home loan work a little differently:
- The IBA typically sets the interest rate according to the applicant’s income and circumstances
- At the beginning of the loan, a reduced interest rate applies. This is called the ‘starting rate period’
- After the starting rate period, the rate rises gradually each year, until it reaches the ‘IBA Home Loan Rate’
IBA reviews its home loan rate monthly, making sure it’s similar to the average standard variable rate in the broader home loan market.
Can I access any other government assistance and grants?
Yes, it’s possible to also qualify for various grants and home ownership schemes, such as the 5% Deposit Scheme and various first home owner grants, in addition to an IBA Indigenous home loan.
Where can I find information about the Indigenous Home Ownership Program?
You could visit IBA’s website, call 1800 107 107, or use its online email form. The website also has information about business loans and support for Aboriginal and Torres Strait Islander peoples.
