Home Loan Frequently Asked Questions
Indigenous Business Australia (IBA) has compiled the following frequently asked questions and answers about the Home Ownership Program home loans. If you cannot find the information you require here, please Contact Us.
How do I apply for a home loan?
How much can I borrow?
How long do I have to wait for a home loan?
What will my repayments be?
How do I make loan repayments?
Must I live in the home?
What is the loan term?
Am I able to increase my loan repayments?
What happens if I can’t make a loan repayment?
What if my personal/financial circumstances change?
How can I own my home sooner?
For further information
How do I apply for a home loan?
Currently the demand for assistance is in excess of available funding. Therefore it is necessary for IBA to have a two-stage application process. The first stage is to register your interest by completing an Expression of Interest Form and a Confirmation of Aboriginality or Torres Strait Islander Descent Form.
Once IBA receives the above forms, your initial eligibility for a home loan will be assessed. IBA will contact you regarding the outcome of your request to be placed on the Expression of Interest Register (a list of eligible applicants).
Find out more about Applying for a Home Loan.
How much you can borrow will normally depend on your income, living expenses and the repayments on any other liabilities you may have. Following the assessment of your Expression of Interest, IBA will be able to provide an estimate of loan and repayment amounts for you.
How long do I have to wait for a home loan?
The Home Ownership Program is self financing. New lending is funded from loan repayments and the early payout of existing loans. Hence eligible applicants may need to wait some time for their application to be approved. Currently the typical waiting time is approximately 12 months.
What will my repayments be?
The loan repayment amount is tailored to a borrower’s ability to meet the monthly repayments.
How do I make loan repayments?
Repayments are made by direct debit or automatic payment from a nominated bank account.
Yes, borrowers must live in the home for which they have received home loan finance. Short term approval to rent may be provided in special circumstances. Please phone our staff on FreeCALL 1800 107 107* to discuss your specific details.
The term of the loan will generally not exceed 32 years based on loan repayments being set between 20% and 30% of gross income. A shorter or longer term may be selected depending upon a borrower’s ability to meet the payments required.
Am I able to increase my loan repayments?
Yes, please phone our staff on FreeCALL 1800 107 107* to discuss your specific details.
What happens if I can’t make a loan repayment?
Please phone our staff on FreeCALL 1800 107 107* immediately so we can work together to come to an early and satisfactory arrangement.
What if my personal and financial circumstances change?
Please phone our staff on FreeCALL 1800 107 107* as soon as you become aware of any changes to your personal and financial situation that you think may affect your ability to meet your loan repayments.
Consider whether you can afford to pay more than your minimum repayment. This reduces your loan balance more quickly and also reduces the interest charges you will pay over the term of the loan.
Read our Home Ownership fact sheet (PDF 390KB, new window) and Home Loans for Indigenous Australians brochure (PDF 2MB, new window).
Our friendly and experienced staff are here to help, so if you need any further advice, assistance or information please phone our staff on FreeCALL 1800 107 107*.
(*Calls to 1800 numbers from your home phone are free. Calls from public and mobile phones may be timed and charged at a higher rate.)