Indigenous Business Australia Home Loans
What home loans does Indigenous Business Australia offer?
Indigenous Business Australia offers housing loans to eligible indigenous Australians who are unable to borrow the needed funds from another lender. The loan amount you may be offered depends on a number of factors outlined by IBA, including your income and savings, your capacity to repay the loan, the value of the property, the interest rate and the length of the loan.
IBA says its loan products may be available for the following housing-related purposes:
- Purchasing a home
- Purchasing and renovating a home
- Building a home
- Home improvements
- Fee finance (i.e. loans to assist with costs such as stamp duty and building inspections)
- Purchasing residential land to later build a home on
- Refinancing a loan from another lender
- Property settlement in the event of a relationship break-up
- Previous home owners who are unable to borrow from another lender
Canstar does not currently compare Indigenous Business Australia home loans, but you can compare other home loans providers on Canstar’s database:
Indigenous Business Australia home loan features
Depending on your individual circumstances, IBA says some features of its home loans may include:
- A flexible loan amount
- Lower deposit requirements than commercial lenders
- A minimum deposit amount for first home buyers of $3,000, depending on your income
- Variable interest rates depending on your individual circumstances and loan requirements
- A low commencing interest rate for first home buyers, capped for a minimum introductory period
- A split loan option, which allows you to meet the gap if you can obtain some of the funds required from another lender
- An extended introductory interest rate for those who obtain part of their funds from another lender
The inclusions above represent a selection of the features available with Indigenous Business Australia home loans. Canstar is not making any suggestion or recommendation to you about this lender or its products. Additional conditions may apply to different features. Check upfront with Indigenous Business Australia and please ensure that you read the key facts sheet or other loan documentation to determine all the current loan terms and conditions for the product you are considering and whether it meets your needs, before committing to it.
Indigenous Business Australia Home Loans FAQs
Before getting started, you might first like to take a look at our applying for a home loan checklist for some pointers, and use the Canstar website to compare home loans with other providers before choosing a product that suits your needs (please note that Canstar does not currently compare Indigenous Business Australia home loan products).
If you decide to apply for an IBA home loan, you can register your interest by completing an expression of interest form. The form can be completed online or you can request a printed copy through the IBA website.
To be eligible for a home loan, IBA says that at least one applicant must:
- be of Aboriginal and/or Torres Strait Islander descent
- be an Australian citizen or permanent resident
- be at least 18 years of age
- be able to contribute the relevant deposit/equity (First Home Owner Grant Scheme may assist with this)
- have the capacity to meet housing loan repayments
- meet other home loan criteria relevant to your home purchase
- intend to live in the home being acquired
IBA advises that if you are eligible and ready to apply for a loan, you will be added to an expression of interest register and will be invited to submit a housing loan application when the funds become available. IBA says that the average waiting period is generally between three to six months, although at the time of writing, it notes that due to strong demand for its home loans and limited funds, the current estimated wait time is approximately 12 months.
At the time of writing, Indigenous Business Australia allows extra repayments on some of its home loans, however it says a discharge fee may apply if you complete your loan, sell part or all of your property or refinance your loan with another lender. Terms and conditions may apply. Contact Indigenous Business Australia for details.
To give you an idea of how making extra repayments could save money in interest over the life of your loan, you might like to try our Extra Repayments Calculator.
Indigenous Business Australia’s home loans do not offer a redraw facility at the time of writing, however you may be eligible to apply for an additional loan for a range of housing related purposes. This may include home improvements, routine maintenance and repairs to your existing home. Fees and charges may apply. Contact Indigenous Business Australia for details.
Indigenous Business Australia (IBA) is an initiative of the Australian Government that aims to improve and encourage economic development opportunities for Aboriginal and Torres Strait Islander Australians. IBA says it serves, partners and invests with Indigenous Australians to help ensure their financial success and economic independence.