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IBA Shared Equity

If you’re saving for a deposit for your own home but are not sure if you can borrow enough with just an IBA Home Loan, IBA may be able to help. We’ve recently launched a new product to help more Aboriginal and Torres Strait Islander people become homeowners sooner.

How does it work?

For Aboriginal and Torres Strait Islander people looking to purchase a home, and where an IBA Home Loan on its own is insufficient to enable you to purchase a home in your local market, the IBA Shared Equity product may be an option.

It is a finance option provided in combination with an IBA Home Loan. With the IBA Shared Equity product, you can get up to 35% of the property purchase price, and IBA will provide an IBA Home Loan for the balance (less your deposit).

IBA will not have any ownership in the property but when you refinance or sell your home, IBA will share in a portion of any increased or decreased value of your property based on the relevant percentage IBA holds under the IBA Shared Equity product.

At any time, you can make voluntary lump sum payments of $10,000 or more to buyback and reduce the percentage of IBA’s Shared Equity contribution.

What deposit will I need?

Depending on your income, you’ll only need as little as 1% or 2% deposit and you must also be able to cover any costs involved in the purchase, such as stamp duty and conveyancing costs.

Here's an example of how it works

Let’s say the home you want to buy is $500,000. You have a $10,000 deposit (2%) and you can only afford to repay an IBA Home Loan of $315,000. This leaves you with a gap of $175,000 or 35% of the property price.

The IBA Shared Equity product allows you to cover the 35% gap.

You do not need to make regular repayments on IBA’s Shared Equity product, only on your IBA home loan. However, as the value of your property changes over time, so does the value of the IBA Shared Equity product.

And if you refinance or sell your home, IBA receives 35% of the property value at that time, along with the outstanding balance of your IBA home loan.  


Example at purchase
Property Purchase Price$500,000
Deposit (2%)$10,000
IBA Home Loan$315,000
IBA Shared Equity (35%)$175,000
Example at sale
Property sale price$600,000
IBA home loan$250,000
IBA Shared Equity (35%)$210,000

As a homeowner, you do need to live in the home as your principal place of residence, and are responsible for all property costs including maintenance, rates and insurance. 

How can I apply?

As with all our products, eligibility criteria, terms and conditions apply. In particular, customers are strongly encouraged to obtain independent legal and financial advice to make sure the IBA Shared Equity product is right for you.

If you’re interested in an IBA Home Loan and/or IBA Shared Equity, you can lodge your expression of interest here or call IBA on 1800 107 107 if you’d like to speak to one of our home lending officers.

Read IBA Shared Equity Frequently Asked Questions.


Watch our explainer video for more insight into how it works