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The Aboriginal Home Ownership Scheme is designed to assist
Aboriginal and Torres Strait Islander people buy a home of their
own.
We can help with initial advice, an assessment of your financial
circumstances and ongoing support once the loan has been taken
out.
The aim of the scheme is to provide Aboriginal people with an
opportunity to achieve home ownership and to establish a proud,
secure base within the community for themselves and their family. We
recognise that everyone’s needs are different which is why we offer
a shared equity loan and a Low Deposit loan.
Shared Equity Loans
The shared equity loan is designed for people on income that is
within the rental income limits set down by the Department of
Housing and Works. For further information on these limits, click
here.
Under the shared equity scheme, the Department of Housing and
Works will purchase equity in a property, with your loan and deposit
covering the balance of the purchase price. This will allow you to
realise your dream of home ownership sooner rather than later.
In the future when you can afford to, you can purchase some or
all of this equity back from the Department. This will be based on
the market value of the property at that time, however if you have
made structural improvements that have added value to the property,
this will be taken into consideration.
About the Loan
With an Aboriginal Home Ownership Loan, you may
only need a deposit of $2,000 or 2% of the purchase price if the
property you are purchasing is $412,000 or
less.
If you live above the
26th Parallel, the maximum purchase price with a 2% deposit is
$450,000 while a 5% deposit can allow you to purchase a property up
to $500,000 in the North of the state.
If you don’t have that amount already saved, then the First Home
Owner Grant can be used to cover all or part of the deposit and any
loan fees. For further information on the First Home Owners Grant,
click
here.
If you are not eligible for a First Home Owner Grant then you may
be able to borrow up to $2,000 for assistance with fees. Non-first
homebuyers may also be eligible for a non-repayable grant from the
Department of Housing and Works of up to $3000 to assist with the
purchase costs.
How much can we borrow, and what will our repayments
be?
The loan amount and repayments will depend on your assessable
income, other commitments you may have and the value of the property
you wish to purchase..
Our loans counsellors will determine the loan you qualify for
once they receive an application form and supporting documentation
from you.
What interest rate will apply?
The interest rate is variable and at the 1st June 2010 is 7.37%
per annum.
Eligibility
Applicants for the Aboriginal Home
Ownership scheme must:
- Provide written confirmation from a recognised Aboriginal
organisation that they are of Aboriginal or Torres Strait Islander
descent
- Be over 18 years of age
- not have any debts owing to the the Department of Housing and
Works or Keystart
- have a satisfactory rental and credit history
- be able to demonstrate that you have the capacity to meet the
required repayment
- not own or part-own another property or land in Australia
- not be currently bankrupt or discharged from bankruptcy within
2 years of the date of the application
Where do I obtain
further information?
For information about the Aboriginal Home
Ownership Scheme or to determine if you are eligible to apply,
contact:
Manager, Robert Isaacs OAM JP
Toll
Free: 1800 306 877
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