Indigenous Business Australia (IBA) has partnered with the Victorian government to give extra assistance to Aboriginal and Torres Strait Islander people in Victoria looking to buy their own homes through the Victorian Homebuyer Fund scheme.
Through the scheme, the Victorian government co-invests with participants in residential property in exchange for an equivalent equity share.
Eligible Aboriginal and Torres Strait Islander participants can receive a 35-per-cent government contribution towards their home. A minimal 3.5-per-cent deposit is required, and participants must be able to cover any acquisition costs, such as stamp duty and conveyancing costs.
The rest of the purchase price is done through partner lenders, such as IBA. The Victorian government does not receive interest from its investment but will share in any capital gains or losses proportionate to its share in the property. This means the value of its share goes up or down proportionate to changes in the property’s value.
Participants are required to buy back the government’s share in their property through refinancing, using savings, or upon sale of the property.
IBA’s executive director, government and public Relations, Sean Armistead, said the partnership with the Victorian government supported more Aboriginal and Torres Strait Islander people in Victoria to become homeowners.
“We’re always looking for new ways to support our First Nations customers to become an integral part of the Australian economy – whether that be owning a home, starting or growing a business, or investing in their future,” Mr Armistead said.
“Homeownership can be positive in one’s life in many ways, including health, stability and general wellbeing. But the current housing market is affected by the added uncertainty of rising interest rates and housing stock availability, which makes the opportunity more difficult.
“This new fund provides support for First Nations home buyers who might not otherwise be able to access their first home,” he said.
“We’re deeply invested in the financial success of First Nations people and providing viable opportunities for home ownership, and welcome the partnership with the Victorian government to further those opportunities.”
Victoria Treasurer Tim Pallas says there is a reason the Victorian Homebuyer Fund has been popular.
“It helps people get into their own homes quicker with help from a secure partner,” Mr Pallas said.
“Thousands more Victorians will now be able to realise their dreams with this new injection; combined with the First Home Owner Grant and first home buyer stamp duty relief, it can make a massive difference.”
