Media Statements - Milestone for Aboriginal housing scheme

14/09/05

Housing and Works Minister Francis Logan today congratulated the 500th person to purchase her home under the State Government’s Aboriginal Home Ownership Scheme.

Nicole Collard and her four children recently moved into their four-bedroom, two-bathroom home in Kenwick.

Mr Logan said the State Government recognised that housing was a significant issue for Aboriginal people and the Aboriginal Home Ownership scheme provided specific initiatives to help them own their own homes.

“People who cannot afford to buy an entire home can still achieve their home ownership dream by purchasing a property in partnership with the Department of Housing and Works (DHW),” he said.

“For example, the DHW could buy up to a 30 per cent share in the home to help residents get started. This means the deposit and loan need only cover 70 per cent of the value of the home. Later, the DHW’s portion can be purchased.”

Mr Logan said two types of loans were offered - shared equity loans for people on low incomes and low-deposit loans for people on higher incomes who were over the standard income limits.

The maximum purchase price is $400,000, but repayments are assessed in accordance with the borrower’s income. The interest rate is currently 7.24 per cent.

Other advantages of the scheme include:

it requires only a two per cent or $2,000 deposit (whichever is the greater);
the $7,000 first home owners grant can be accepted as the deposit, so savings may not be needed;
unlike other lenders, no mortgage insurance is payable by borrowers, representing a saving of several thousand dollars;
up to $3,000 cash assistance is available to help with up-front establishment costs if people are not eligible for the first home owners grant;
it is managed for Aboriginal people by Aboriginal people; and
financial counselling and safety net assistance are available to help people stay in their homes if they get into difficulties.

Mr Logan said the State Government was committed to helping more Aboriginal people make the transition from renting to home ownership.

Since the scheme began in 1995, loans totalling more than $50million have been approved.

The manager of the Aboriginal Housing Scheme, Robert Isaacs, has recently completed tours of WA’s country regions where he promoted the scheme at open forums and seminars.

Minister's office: 9222 8950