Loan Products

IBA housing loans are available to Indigenous Australians buying, in most cases, their first home and who are unable to borrow all of the required funds from another lender (for example, a bank or credit union).

IBA offers housing loan products to enable eligible customers to buy:

  • an established residential property
  • an established residential property and upgrade
  • land and construct a new home

Additional assistance is available to customers living in remote areas or who are relocating from a remote area.

IBA also offers loan products for other housing-related purposes – for example, to fund essential repairs or improvements to an existing home, or to refinance an existing loan in cases of family break-up or where there is a change in financial circumstances that would result in the family home being sold.

Purchase of a home

This is a loan to purchase an established residential property suitable for your needs. This is the most frequently used IBA housing loan product.

Purchase and renovation of a home

This is a loan to purchase an existing residential property and undertake repairs and renovations. The repairs and renovation must be undertaken by a registered licensed builder under a fixed-price contract.

For these types of loans, IBA will release loan funds on a progressive drawdown basis, with progress/valuation certification at each stage of construction.

Construction of a home

This is a loan to purchase land and construct a new home. A condition of construction loans is that the house is to be built by a registered licensed builder under a fixed-price contract.

For these types of loans, IBA will release loan funds on a progressive drawdown basis, with progress/valuation certification at each stage of construction.

The house construction must be completed within a time period approved by IBA.

Fee finance

You will be required to pay for other costs in addition to the purchase price of your home. These may include your property valuation report, building and pest inspections, conveyancing costs, state-levied duties (e.g. stamp duty) and mortgage registration fees.

If you are a first home buyer and don’t have sufficient personal savings or access to First Home Owner Grant funds, an additional IBA loan may be available to finance these costs.

Home improvements

This is a loan for home improvements, routine maintenance and repairs to your existing home. IBA may consider providing a home improvement loan when the improvement is required:

  • to accommodate changes in the number of family members
  • for medical or health-related reasons
  • to assist a family cope with local environmental conditions such as heat or cold
  • to repair or replace worn-out or obsolete items of domestic infrastructure
  • to prevent harm or danger to the family members.

Purchase of residential land

This is a loan to start you on the path to home ownership through purchasing a residential block of land, which you can then later build on. A condition for purchasing residential land is that you build a home within a certain timeframe.

Refinance

This is a loan to refinance a loan from another lender where, due to an unforeseen or unexpected circumstances (for example, the death or invalidity of a spouse resulting in a significant reduction in income), the applicant may lose their home. People adequately housed and repaying loans without difficulty are not eligible for a refinance loan.

Property settlement

This is a loan to enable applicants experiencing a relationship break-up to continue to live in and own their home by buying out the other party’s equity interest in the home.

Previous home owners

This is a loan to assist people who have owned a home before but need a loan to buy a new home where circumstances have made it necessary to sell their home and their financial situation precludes them from borrowing from a commercial home lender.

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