IBA Media Release: Victorian Indigenous Home Buyers Get Relief

IBA Media Release: Victorian Indigenous Home Buyers Get Relief

Posted 25 October 2022

The Victorian Homebuyer Fund, a Victorian Government shared equity scheme, has partnered with Indigenous Business Australia (IBA) to give extra assistance to Aboriginal and Torres Strait Islander people in Victoria looking to buy their own home.

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% government contribution towards their home. A minimal 3.5% deposit is required, and participants must be able to cover any acquisition costs, such as stamp duty and conveyancing costs.

The remainder of the purchase price is facilitated through partner lenders, like IBA. The Victorian Government does not receive interest on 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 over time through refinancing, using savings, or upon sale of the property.

IBA’s Executive Director, Government & Public Relations, Sean Armistead, notes the partnership with the Victorian Government supports 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.

“Home ownership can create a positive impact on 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.

“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.”

Treasurer of Victoria Tim Pallas said, “The Victorian Homebuyer Fund has been popular for a reason – it helps people get into their own homes quicker with help from a secure partner.”

“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.”

More information can be found on IBA’s website at iba.gov.au/vhf.

Media contact: Tara Toohill 02 9207 6362 or tara.toohill@iba.gov.au