In just 3 months more than half the Indigenous people projected to take home ownership in the current financial year under the Indigenous Homeownership Program are already enjoying homeownership.
Indigenous Homeownership Program had a very strong start to the financial year with an additional 1200 Aboriginal and Torres Strait Islander people being able to enjoy the social and economic benefits of homeownership.
Ran by Indigenous Business Australia (IBA), the Indigenous Homeownership program has been assisting Aboriginal and Torres Strait Islander people move from social housing or rental properties to homeownership thanks to flexible home loans and financial arrangements for more than 40 years.
IBA CEO Rajiv Viswanathan has welcomed the stellar start to the current financial year with his organisation hitting half its annual target within the first quarter.
‘As at 9 October, IBA had already approved $96 million in home loans in just over one quarter, against an annual target of $175 million for the 2017-18 financial year.
At these levels of demand, IBA is well placed to exceed its annual target and continue to grow the reach of its homeownership offering.”
Mr Viswanathan also says that this performance builds on the results of the previous financial year in which IBA wrote 544 home loans valued at $168 million, exceeding a target of 530 loans.
The CEO of IBA stresses that unlike the situation prevailing in the general Australian real estate market where only a small percentage of new buyers are first homebuyers; in 2016-17 the overwhelming majority (92%) of IBA’s loans were provided to first home buyers. At the same time 90 per cent of IBA loans went to customers in the lowest income bands and 78 per cent to customers in regional and remote areas.
"By owning their own home, Indigenous families and home owners can obtain a secure, safe place to live and build intergenerational wealth", Mr Viswanathan said.
IBA has seen a significant growth in demand in the past year and this trend has continued into the current financial year. It is believed that the results were achieved through stronger community engagement, a more streamlined application process as well as digital enhancements to improve the customer experience and reduced starting interest rates for low income earners to make housing more affordable.
