Final article in a series of three. Reproduced from The Guardian Labs. First published 9 March 2020.
Meet Kylie and Naomi, who are great examples of how Indigenous home ownership changes lives long after the SOLD sticker goes up.
The ability to buy a home and pass it on to the next generation has been shown to greatly enhance pride and empowerment for Indigenous Australians.Home means something different to everyone. It can be a place to relax, a fortress of solitude or a lively community hub. But for Indigenous homeowners, the impacts reach far beyond this, as Kylie and Naomi have discovered.
Before Kylie moved into her own home, she was missing a place of belonging. She and her partner wanted a place to call their own, but coming from a place of hardship meant their financial history wasn’t a good fit for a mainstream bank.
“I didn’t have a clean past,” Kylie says. “I had outstanding debts. Putting it all down on paper, we had a lot of hard work to do.”
Kylie was able to secure financing through Indigenous Business Australia (IBA). After she was first rejected, IBA helped Kylie understand how to bolster her application and get it over the line.
“It was around budgeting, financing, a lot of things that were really foreign,” Kylie says. “It was structured and about IBA walking with us every step of the way: this is what you need to do first, this is what you need to have in the bank. All that stuff we didn’t understand. At first it seemed really daunting, but IBA just pushed through.”
For Kylie, this restored hope for a life she never thought she would have. “I felt like somebody believed in me,” she says. “It made me feel like achieving this dream is really within reach.”
As well as having a place to call her own, Kylie has gained financial literacy skills that will help her stay ahead for the rest of her life. She says IBA helped her learn a “new language” to better manage her money.
“It’s been an educational process as well,” she says. “We know what it is to be saving. I’ve started looking at what my super projection is, how I can have a really nice retirement fund. We’re doing renos, and we’re going to redo our financing on the house. We’re doing all these things that make everything worthwhile.”
“Now my kids will go on to get an education and know they have a place."
The impact of home ownership flows into Kylie’s work. She’s a community development manager, working with rough sleepers and people who are marginalised. She says having her own home gives her a place to recharge, so she can be great at what she does, and that helps everyone.
“It gives me this intense level of gratitude,” she says. “Having a place means that I turn up to work every day. It means I’ve been employed. I’m valued in my field of work. I work alongside my community, and I get to go home and turn off and realise how lucky I am, because that was my story not too long ago.”
But for Kylie, the happiest outcome has been having her kids at home with her. As research from Deloitte shows, this has lasting flow-on effects. One-third of Indigenous homeowners surveyed said their children had become more interested in further education.
“Now my kids will go on to get an education and know they have a place,” says Kylie, whose son recently finished high school and has been accepted to university. Kylie was able to attend his orientation, to see him on his way into the world.
“We would not have had this if we didn’t have IBA,” she says. “All that stuff, it’s because I have a place of being. Now I’m a role model.”
In her job, Naomi, a proud Aboriginal (Kamilaroi/Gamilaraay) and Torres Strait Islander (Erub/Darnley Island) woman, encourages her staff to engage in the IBA home ownership program and helps them apply. “We know it is a game-changer,” she says. “We know it makes generational change.”
Naomi has seen the value of the program first-hand. She says she had previously been pre-approved for a vehicle loan, but when she went into a branch and was asked about her Aboriginality, the loan application was declined. Banks didn’t feel like a safe place for her. “It made me afraid to deal in the mainstream.”
She found out about the home ownership program through her parents. Unlike the banks, IBA treated her “like family” throughout the application process.
“I remember getting the advice that we’d been pre-approved and could look for a house. It almost makes you feel like you’ve won the lottery. There was support for what to look for in a home and the kinds of things that would need to happen when we found it. It was a really helpful, holistic process.”
Once the application was finalised, Naomi bought her first home. This came with a sense of equity and self-determination, something she says has had a huge impact on her as an Aboriginal person, and on her wider community.
“It gave me a sense of security – my children are going to be OK.”
Current and intergenerational wealth increase as households enter into homeownership and are able to grow equity in their homes.
Deloitte’s research confirms Naomi’s experience: the vast majority (84%) of Indigenous homeowners surveyed said home ownership had helped them feel safer for themselves, and 87% felt more confident about the future. Given the generations of trauma and exclusion forced on Aboriginal and Torres Strait Islander people, there is extra meaning in coming home.
“Being an Aboriginal homeowner helps us to help our extended family. To help them with accommodation for short or long periods and help them to empower themselves. It extends beyond our children – to our extended family and friends. It enables us to be there for others and to enact and enable greater change,” Naomi says.
Thanks to the program, Naomi’s kids now talk to her about their own future homes. It’s become normalised for them, something they feel is their right. “I love that Aboriginal children can engage in dreams for houses, dreams for jobs and dreams for hard work,” she says.
“As a dispossessed people, having a home, as opposed to having country or a place to be, there’s safety and stability there. You can be safe and free. We can really challenge the intergenerational traumas attached to Aboriginal people just through stability and safety and a place to be that’s yours.”
And, Naomi says, the impact will continue for generations to come: “It is the legacy that we pass on to our children.”
Read other articles in this series.
Housing security not only builds generational wealth but the flow-on effects are good for all Australians - the numbers speak for themselves.
Home ownership is crucial to fostering a safe, healthy and prosperous community. Indigenous Australians remain overrepresented among financially vulnerable Australians, but new research from Deloitte shows that owning a home leads to significantly improved social outcomes.
Supporting home ownership for Indigenous Australians addresses not only the issue of housing but also the financial security, social engagement and wellbeing of the whole community. It can make a difference to many critical issues facing both Indigenous and non-Indigenous Australians.
To support their resilience and ingenuity in their aspirations for home ownership, the Indigenous Home Ownership Program (IHOP), facilitated by Indigenous Business Australia (IBA), has been helping Indigenous Australians to buy their own homes for more than forty years. The Deloitte report shows the incredible impact home ownership outcomes facilitated by IBA have had on individuals, their families and their communities.
Indigenous Australians have historically faced greater than average barriers to home ownership. Until at least the 1967 referendum, they were deliberately excluded from participating in the economy: they were not legally allowed to move freely, control their own children or own property. Even now, home ownership rates are only 38% for Indigenous households, compared to 66% for the overall population. And this figure drops by around half in regional areas, 18% home ownership rate for indigenous households, compared to 57% for the overall population.
Home ownership plays a critical role in providing stability, security and safety, and is key to building economic independence - through the ability to build wealth over time and freeing up time and resources to focus on other aspects of their lives. And as the Deloitte report shows, becoming a homeowner has a drastic impact on the lives of
Indigenous Australians, providing measurable outcomes in personal wellbeing, education, income and employment.
The vast majority Indigenous Australians surveyed (84%), say home ownership has helped them to feel safer for themselves.
Deloitte’s research found that home ownership resulted in improved physical health in nine out of ten Indigenous homeowners. Most also said their physical comfort, self-esteem and overall happiness have improved. When asked to use their own words to describe their experience, some of the most popular responses were ‘stable’, ‘security’ and ‘safe’.
The Australian Institute of Family Studies shows wealth in the home is a principal way for parents to provide for their children.
Deloitte’s survey also found homeowners feel less reliant on others for help, both on their friends and family and the government. More than half (53%) report their household income has increased since they bought their house.
Gaps in learning, income and employment are improved by home ownership: those surveyed feel more focused at work (68%) and almost half say they have planned, begun or finished further education for themselves since becoming homeowners. Owning a home also sets families up for the future: one-third of those surveyed say their children have become more interested in further education.
People living in their own homes are more likely to engage socially, and 70% now have more confidence in social interactions. An overwhelming 87% say they are more confident about the future.
Across the board, in Australia, home ownership is in decline. It’s expensive, there’s a shortage of suitable dwellings, and it’s tricky to secure finance. Only 66% of us own our own home, and less than a third own it outright – a drop of 10% over the past 20 years. Rising housing costs have amplified the inequality between those on high incomes and those who cannot afford to buy into the property market.
In supporting Indigenous Australians to become homeowners, IBA buoys the economy. In 2017-18, it saved $2 million in government rental assistance and $370k in avoided homelessness.
Since its inception in 1975, the IHOP program has generated an average of 29 full-time equivalent jobs per year, and $483 million in economic activity. Through health, education, employment and community engagement, it has created $895 million in social and economic outcomes for Indigenous homeowners over more than forty years.
Having a secure home is a powerful tool to drive generational wealth and stability. When you are no longer struggling to fund your family’s basic needs it allows you to put your mental and emotional energy into other areas of your life and reap the rewards this provides. It benefits family and community groups alike, whether it’s through better access to education and providing a stable and consistent home environment to raise your kids or by promoting better job outcomes and contributing to the growth of the Australian economy. By supporting Indigenous Australians to become homeowners, IBA generates significant, direct economic and social benefits for Aboriginal and Torres Strait Islander people and their families, and in turn, the wider community.
IBA CEO, Rajiv Viswanathan, says ‘Home ownership should be accessible to all those that are ready and is a critical step in creating equality for Aboriginal and Torres Strait Islander people.’
‘While demand for IBA’s home loan offering continues to grow at unprecedented rates, we are committed to investigating as many ways as possible to grow available funds to assist more people to get into home ownership, building on the tremendous success of the Indigenous Home Ownership Program,’ Viswanathan says.
‘Home ownership is one of the most important things our customers do. We know when we approve a home loan for someone, we change their lives and their children’s lives.’
The power of one simple tool - funding Indigenous home ownership - to solve multiple obstacles to building generational wealth, education, employment, health and wellbeing, is indeed a cause for optimism, for all Australians.Find out more about the IBA Indigenous Home Ownership Program.
Read other articles in this series.
Figures show Indigenous home ownership can create a better and more prosperous Australia for everyone.
Indigenous Australians who own their homes feel safer, more positive about the future, and more engaged in work and school, according to recent research from Deloitte.
And the benefits are far-reaching. Work undertaken by Indigenous Business Australia (IBA) to support Aboriginal and Torres Strait Islander people into home ownership has a positive economic impact on the economy and all Australians, the research shows.
Reduced pressure on the wider economy
Nicki Hutley, a partner at Deloitte and leader of Deloitte Access Economics’ Urban Advisory practice, says the benefits of home ownership are multidimensional. “Social policymakers understand that a housing-first approach to dealing with social issues is so important,” she says.
Hutley has driven research on IBA’s Indigenous Home Ownership Program (IHOP), a government initiative offering financial assistance for Indigenous home ownership. In 2017-18, it reduced reliance on rental assistance by $2m, and saved $370k in avoided homelessness.
The avoided costs of homelessness is valued at $7 million in total for the period of 1975-76 to 2017-18, and $370,000 for 2017-18.
Source: Deloitte Access Economics.
The avoided costs of homelessness due to the IHOP program is valued at $7 million in total for the period of 1975-76 to 2017-18, and $370,000 for 2017-18. Source: Deloitte Access Economics.
These statistics are impressive, but the real impact of IBA’s work is much broader. IBA’s work not only reduces government expenditure, but also helps free up social housing, making it accessible for others who would otherwise be facing homelessness, making a better life for more families, and their communities.
Watch video: Why Indigenous Home Ownership Makes a Difference to us all
Economic injections that would not otherwise happen
IBA chair, Eddie Fry, says economies are flatlining as people become more nervous about how they use their money. But that makes people think less about themselves and more about how we can all do better.
“I think when we get into the same boat, people tend to think more broadly about the wider community,” he says.
Supporting home ownership for people who would otherwise not have access stimulates financial activity. Hutley says it injects new funds into the economy, both at a federal and local levels.
“As a result of more stable employment and better education outcomes, the next generation gets to have better employment opportunities,” she says. “That doesn’t only help avoid social transfer payments to people who are unemployed; it actually generates greater taxation revenues to government.”
These revenues come from income tax, payroll tax, and higher GST collections because people with higher incomes are spending more. This increased government revenue can be used for the benefit of all Australians.
“This [IBA] program enables investment in housing that wouldn’t otherwise occur and actually adds to the amount of economic activity that’s happening,” Hutley says.
Improved overall wellbeing
IBA’s work supporting Indigenous home ownership outcomes generates further ripple effects that benefit all Australians and the broader economy. Deloitte’s research shows Indigenous homeowners feel less reliant on others for help. That feeling of agency is reflected in general wellness: those surveyed said they felt more motivated about work, were earning more and encouraging their children to further their education. All these factors stimulate local economic activity.
“But then it also generates additional benefits in terms of better social outcomes, including health, education, employment, safety and self-esteem,” Hutley says. Financially, Hutley says, IHOP has delivered almost $895m in social and economic benefits over its lifetime.
Home ownership is an important economic indicator of wealth and saving, and is positively related to employment and income indicators.
Home ownership is an important economic indicator of wealth and saving, and is positively related to
employment and income indicators.
Fry agrees that the combination of outcomes is significant. “The focus on Indigenous home ownership is so important for the nation,” he says. “Home ownership leads to sub-text outcomes that make up the wellbeing of a family unit.”
It also improves the wellbeing of the wider family network, he says. “And that extends into the non-Indigenous sector.”
Home ownership creates long-term generational wealth
In Australia, home ownership is critical to creating long-term wealth. The Grattan Institute reports that, in an ageing population, property contributes the majority of total net wealth, while the figures from the Australian Housing and Urban Research Institute show those of us who inherit property wealth will be able to invest more, and in areas with greater capital growth.
Hutley says: “We know that Australians use home ownership as a primary means of generating wealth. We also know increasingly that if you retire without owning your own home, you are much more likely to be living in poverty.”
Indigenous Australians have faced decades of intergenerational disadvantage, which Hutley says is among the most difficult challenges they face. But programs such as IHOP help to break that cycle. “You’re not only taking the current generation potentially out of poverty by building an asset for them,” she says. “You’re then able to pass it on to future generations.”
In addition, as Fry explains, the program supports lateral wealth generation. As Indigenous home ownership grows, loan repayments are used to support further loans for other families.
As a program that is financially sustainable in its own right, Fry hopes support for it will continue to grow, commensurate with the overwhelming demand that IBA experiences from customers who are locked out of accessing mainstream lending options for home ownership because of lower incomes, lower savings, lack of credit history and limited experience with loans.
“Acceptance by society is when society realises everyone’s pulling in the one direction,” he says.
“We don’t want to forget the past, but we want to be looking out the front window. That’s where the demand is, and that’s where we need to be putting all of our strategic thinking.”
Find out more about the IBA Indigenous Home Ownership Program.
Read other articles in this series.
When Adam Wooding, a proud Yorta Yorta man, and his wife Carmel reached out to IBA, they were ready to bring their new business idea to life. After participating in the Accelerate with IBA program, they decided to take a completely different road and created something better than they first imagined.
Accelerate with IBA is designed for Indigenous entrepreneurs to take their business to next level. It combines formal training and practical skills development with highly respected advisors and connected mentors to transform businesses into the most effective version it can be.
Adam and Carmel are the owners of Empower Digital, a business specialising in e-commerce on the Shopify platform. Adam & Carmel's key focus is empowering small and micro businesses to take control of their digital presence by giving them the skills to build and manage their online stores.
When they signed up for the program in 2019, they were in the early stages of planning their first business venture. They came into the program planning to build an app, but after the first week of workshops, they discovered there might be a better direction to go in.
All participants were faced with some challenging questions that got them thinking about what was at the core of what they wanted their business to be and what they wanted to achieve.
Challenged to think about the bigger picture, Adam and Carmel realised that their business idea wasn’t aligning with their end goal and their values, so they took this as an opportunity to pivot in a different direction.
“We went into this thinking ‘we know this is the right business, this is what we’re doing’ and but it turns out it wasn’t, and that was a challenge.”
“We thought that changing our business idea to something completely different might be a problem, but our mentors were really supportive. They said, ‘if this is what is right for your business, then go for it.’”
“So, we put in the extra hours to get back on track with the program and created a business idea that was true to our hearts,” said Adam.
“But adding to that, even though we’re now doing what we love, and it all worked out, I think it’s important for future participants to know that the process was confronting. It’s uncomfortable to question your business idea, but in doing so, you’ll create something more aligned with your values,” Carmel added.
Adam and Carmel say that Accelerate with IBA gave them the confidence they needed and that their business is thriving since finishing the program.
“IBA customised the program to each participant, so we were able to focus our individual needs, which was really valuable.”
“One of the most valuable things we took away from the program was the networks that we made. We became really close with everyone else in the program. We still all catch up regularly to yarn about our businesses and share ideas.”
“That also gave us the confidence to network beyond that. One of the reasons our business has done so well is that now, we are confident enough to go to networking events and talk about our business. We’re not doubting ourselves, or who are or what we do.”
Since the program, Empower Digital have continued their relationship with IBA. They’ve accessed a busines start-up loan, participated in several business skills workshops and grown their network with other IBA customers.
Empower Digital has now moved on to a new phase of their business after experiencing substantial growth over the past year.
“We’re now able to be selective in the work that we take on, we’ve found that balance of having enough work that we can only take on jobs that are true to the service that we offer. We’re doing things that really excite us.”
When asked if they’d recommend Accelerate with IBA to other Indigenous entrepreneurs considering it, Carmel had no hesitation saying, “do it! We are huge advocates of the program. Don’t question whether you are good enough. If you want your business to happen… it’s just worth doing.”
Are you tuning in to the Black Magic Woman Podcast Series?
Adam and Carmel recently had a yarn with Mundanara Bayles on the Black Magic Woman podcast as part of our partnership series based on a variety of topics including housing, business, youth, women, investing, financial literacy, economic development and COVID-19 recovery.
Listen to the podcast episode here.
Applying for home loan can be a daunting prospect at the best of times, but particularly so for Aboriginal and Torres Strait Islander people, who remain among Australia’s most financially vulnerable people.
This disparity is part of the reason why IBA was created. We’ve been helping Aboriginal and Torres Strait Islander people with loans and financial services since 1990, assisting with lending so Indigenous Australians can enjoy economic freedom and own their own homes.
Earlier this year, IBA partnered with like-minded banks to help customers transition to and access the benefits of mainstream finance. Jodie, a proud Gunditjmara woman, refinanced her loan in March 2021 to one of the panel members.
Jodie lived in Warrnambool her whole life, and bought her first home with her partner and three kids two years ago after receiving a home loan from IBA.
“It was a really brilliant start,” explains Jodie. “We wouldn’t have been able to own our own home without their support. When you’ve got children, it’s really hard to save that 20% deposit.”
Through IBA, Jodie was able to get a loan for a house with a lower deposit required.
“With IBA, they are there to get you started into home ownership when you might not be able to access finance from a mainstream bank,” Jodie says. “Once you’re ready to refinance with another bank, the money from your loan can help finance another Indigenous person’s loan.”
Jodie spoke to IBA about refinancing options, and they suggested she get in touch with one of the partners on IBA’s new banking panel that were chosen due to the aligned values.
Since refinancing, Jodie has been thrilled with the level of service she’s received and the supportive process involved.
Jodie said, “There were times that I wasn’t very well and it was hard to remember what we needed to do, but (one of the banking partners) was always there helping us through emails and phone calls. She was never pushy or impatient; we feel so lucky to have had her support.”
Since making the transition, Jodie’s loan repayments have significantly reduced and the extra money has allowed her to buy a caravan.
“Having a caravan means we go on more holidays and spend more time together as a family,” Jodie says. “The kids (aged 15, 17 and 19) have got their own tents, and it’s really increased the bond we have, being able to spend time together without having that financial pressure.”
After refinancing, Jodie has continued to have contact from their banking partner to see how they’re getting on. “It’s so daunting buying a house and having a loan,” Jodie says, “but having the support from (one of the banking partners) is really comforting and eases any worries you may have.”
Find out more about IBA's banking partnerships.
The thought of owning a stable home for a blended family of seven seemed like a distant dream for Palawa couple Brianna and James. That was until a family member introduced them to IBA.
With their goal in mind and the support of IBA, they started their journey to home ownership. Now they are proof that anything is possible with the right plan.
When Brianna left her previous relationship, she ended up with mountains of debt and a bad credit rating. James had owned a home in the past, but the couple thought owning a home together was out of reach.
After hearing about IBA, they took the first step in their home ownership journey. They jumped onto the IBA website to start exploring the requirements. They were able to identify what areas they needed to improve on before applying for a home loan and worked out achievable steps to get there.
Brianna and James attended IBA’s workshops on budgeting and preparing for home ownership which encouraged them to create a two-year plan. Cutting their expenses and sticking to a budget were top priorities. They also started paying down their smaller debts and then moved on to tackling their bigger debts.
“We buckled down and started saving money and cutting costs everywhere we could,” says Brianna.
“We would call our utility providers regularly to make sure we were getting the best rate. We’d do up and sell old furniture; wherever we could make or save money we would.”
After two years of getting their finances back on track, their dream of owning their own home was becoming a reality, and they reached back out to IBA and applied for a home loan.
“The day we were approved, we found the perfect block of land. We rang the agent to enquire the next day and we bought. Everything just fell into place perfectly.”
Brianna says that cutting costs and living on a strict budget has all been worth it.
“Owning our own home brings a new chapter. It provides a stable roof over our kids’ heads and somewhere they know they can always call home. It also teaches them that anything is possible if you put your mind to it,” says Brianna.
“With everything that has happened in our past, we never thought this would be possible. We thought we’d be renting for the next six years. We wouldn’t be here without the help of IBA.”
June couldn’t come quick enough for the family of seven as they get the keys to their brand new, freshly built home that has room for the whole family.
Find out more about IBA’s regional construction loan package to build your perfect family home like Brianna and James did!
Keep an eye out on our website for our upcoming home ownership workshops, (info session, budgeting and understanding credit) and register to find out more.
A singing collaboration in the Northern Territory has shown how music can unify communities.
The Barkly Voices Project, sponsored by Indigenous Business Australia (IBA)’s subsidiary IBA Retail Asset Management (IRAM), saw 160 schoolchildren, Traditional Owners and community members from the Barkly Region contribute their voices.
The resulting four and a half-minute video clip of ‘Keep My Culture Strong’ was released today.
The Barkly Voices Project arranged and remixed a song composed and recorded by Barkly musician Brian Morton and Australian musician and songwriter Neil Murray.
“We wanted to show the Barkly Region in a positive light,” says Julianne Croft, a musician and artistic director who coordinated the project via her role at Barkly Regional Arts.
The idea for the online singing collaboration came from IRAM CEO John Kop during COVID-19 lockdowns after seeing the diverse virtual choirs popping up around the world. He arranged sponsorship from IRAM, a subsidiary of IBA, which manages the Tennant Creek supermarket.
Barkly Voices participants were invited to use their smart phones to simultaneously listen to Brian Morton’s backing track and record audio-visual files, which were posted on an interactive website for editing. This was balanced by participants recorded either on site or at the Winanjjikari Music Centre studio at Barkly Regional Arts.
Four schools took part in the collaboration including Tennant Creek Primary School, the Munkarta Homelands, Murray Downs (Imangarra) Primary School and Elliott Public School (with singer Ray Dimakarri Dixon). Other organisations contributing their voices included Catholic Care, Nyinkka Nyunyu Art and Culture Centre and Papulu Apparr-Kari Language Centre.
“The kids were great,” says Julianne Croft. “It was a really positive experience for them.”
Sean Armistead, Executive Director of Government & Public Relations at IBA, notes that contributing to local Indigenous communities for positive economic outcomes is core to IBA’s purpose.
“Projects like the Barkly Voices shine a positive light on Australia’s Indigenous culture – and something we should all be proud to promote.
“The theme of Reconciliation Week 2021 is ‘More than a word, reconciliation takes action’ and this video shows what action can look like.”
Barkly Regional Arts also receives sponsorship from the Northern Territory and Australian Governments.
Media contact: Tara Toohill 0427 011 938 or tara.toohill@iba.gov.au
Sitting by the firelight,
The moon is shining bright.
Listening to all the people
Telling the Dream Time story.
I’m thinking very deeply,
About that dreaming.
How it is the backbone to this land.
Keep my culture strong.
Keep my culture strong.
Culture is the main thing.
It’s our identity and meaning.
It’s the way to survive.
We can’t forget our ancestors.
We gotta keep it all alive,
And pass it on to our children.
Keep my culture strong.
Keep my culture strong.
Keep my culture strong.
And carry on.
[Bridge] (spoken in different First Nations’ languages and Chinese, Indonesian and French languages of Barkly singers: “Keep our culture strong, keep our children strong, keep our country strong”)
Well, I’m standing in my country.
I feel the power in the ground.
It’s what the old people said.
When my time is done and I no longer walk this earth,
My spirit will return to the place I love.
Keep my culture strong.
Keep my culture strong.
Keep my culture strong.
And carry on.
Keep my culture strong.
Keep my culture strong.
Keep my culture strong.
And carry on.
When COVID-19 hit, it stopped Scott and Debra’s South Australian transport company, Karma Trucking, in its tracks. Business came to a standstill, but the bills didn’t.
Debra and Scott have been in the transport industry for over 30 years and this has come with its fair share of challenges. When COVID-19 brought on strict boarder restrictions, their industry was heavily affected.
Debra explained how the ripple effect of COVID-19 left their business in doubt, “Businesses were closing down so they weren’t ordering stock and ships stopped coming in. There was nothing for us to transport.”
“We went from transporting five days a week to a couple of days a week and before we knew it things shut down completely. We were out of work for about eight weeks. Meanwhile we had bills coming in.”
“Although we weren’t working, we still had to be paying insurance for both the business and the prime mover, as well as the vehicle registration. We had to keep paying the bills so that we were ready at the drop of a hat for when jobs did start coming in. We didn’t know how we were going to keep our business from going under.”
Debra and Scott were battling a tough time as business owners. The long-time IBA homes customers thought they’d reach out to IBA to see what support they could get for the business.
“We were actually applying for a small personal loan when our relationships manager at IBA told us about the COVID-19 Business Relief Package. The support we’ve received has just been fantastic.”
“Being able to get on top of outstanding bills and creditors with the package has meant we have been able to also finalise the last payments on our prime mover. It took a weight off our shoulders to have the vehicle as an asset now and not a liability. We’ve been able to get on top of our payments and it’s provided us with some security. We can’t thank IBA enough.”
When asked what advice she would give to other business owners who may be struggling Debra said, “What’s gotten us through hard times is staying in contact. When bills are piling up, pick up the phone and call the provider, let them know your situation and come to an agreement. Don’t give up and put your head in the sand.”
IBA is committed to helping Indigenous businesses impacted by COVID-19. Read more about our COVID-19 Business Relief Package. If you need business assistance, reach out to your IBA relationship manager or register your interest today.
Kristy and Walter have something to celebrate and we’re proud to celebrate with them too. The couple entered home ownership back in 2014-15 through the assistance of a home loan through IBA. Now, thanks to a new approach from IBA, they have successfully refinanced their IBA loan and are realising the benefits of a mainstream home loan, achieving savings each month on their loan repayments.
“IBA has partnered with like-minded lenders to provide a pathway for our existing borrowers who are considering refinancing their home loan. Our banking partners are committed to continue to provide support to borrowers through building strong and respectful relationships with Aboriginal and Torres Strait Islander people, communities and businesses,” Kirsty Moore, IBA’s Executive Director Products and Markets explains.
At IBA, not only do we rejoice in our customers successfully obtaining a home loan, we also celebrate our customers who are able to go on and refinance to a mainstream lender. Kristy and Walter are one such couple and wanted to share their story with others who may be considering a change.
Their journey started seven years ago.
“We were renting together and paying off someone else’s (mortgage),” says Walter. “All that money for something that would never be ours.”
They were focused on getting their own home, however with limited deposit they struggled to get a home loan from a mainstream lender.
Around this time, Walter’s cousin had recently been approved a home loan through IBA and recommended they should ring IBA for a yarn.
“The deposit was much lower than a mainstream bank, and we didn’t have to pay LMI (Lenders Mortgage Insurance).” says Kristy. “It was an awesome hand up.”
They were approved for a split home loan with IBA and another bank, and moved into their family home in 2015. Their plan was to refinance the IBA loan as soon as they were able to.
IBA offers a discounted commencing interest rate to eligible customers which gradually increases each year until it reaches the IBA Home Loan Rate.
“IBA was a foot in the door for us, but we wanted to refinance and free up money so someone else could have the awesome opportunity with IBA that we had,” they agree.
Due to a downturn in property prices in Townsville, refinancing and transitioning 100% of their loan to their other lender was harder than expected. The couple found the process with their other bank to be complicated and lengthy. They were rejected for refinance despite having always met their loan repayments.
The experience was upsetting, and the couple didn’t know which way to turn. That was when Raelene from IBA called and let them know about the recently launched Banking Partnership arrangement where IBA has formed relationships with mainstream banks who are committed to supporting Aboriginal and Torres Strait Islander people in their home ownership journeys. Raelene provided them with contact details of each of the banking partners.
“My confidence had been shattered by the experience I’d had,” says Kristy. “We spoke to (one of the banking partners) and they took the time to understand where we’d been and how to help. They held our hand through the whole thing, let us call whenever we wanted.
It only took about four weeks before we were approved. It’s really changed our life.”
The savings that have resulted from their new rate has enabled Walter to make a career change and follow his dream to become a carpenter. The couple, along with their two young children, can continue to enjoy their family home with their new lender.
“We’ve worked really hard, and gone without plenty of times, to keep our house. Since the day we decided to buy, our house has been our number one financial priority,” Walter says. “Hopefully our sacrifices mean our kids won’t have to work as hard or sacrifice as much as we have.”
When a loan is refinanced, the funds are returned to IBA and re-used to enable new home loans to be provided to other Indigenous first home buyers. “It’s so good to know we’re not blocking the way for someone else,” Kristy says. “Another young family can now use IBA.”
Learn more about IBA's Banking Partnership.
We partnered with SBS to feature Aboriginal and Torres Strait Islander businesses throughout the month of April. This was the 2nd year of the partnership and we love showing the amazing work that our customers are doing.
The 2021 SBS Small Business Secrets segments included:
Check out all the segments on our YouTube channel playlist:
The 2020 playlist is also available which featured Warida Wholistic Wellness, Bindam Mie, Liandra Swim and Banubanu Beach Retreat.
