Scheme to encourage Aborigines to buy own homes - GS region

14/4/96

An initiative designed to encourage Aboriginal families to buy their own homes has attracted strong interest from the Great Southern region.

Applications under the scheme have been approved from families in Narrogin and Tambellup.

The Homeswest initiated program is aimed at addressing the very low level of home ownership amongst Aboriginal people.

The $6 million scheme is run by Aboriginal staff for Aboriginal people. It offers counselling to take people through all the steps in getting a loan approved and offers ongoing support for people who might have any problems with meeting repayments.

Affordable, low interest loans are structured so that mortgage repayments never take up more than 23 per cent of applicants' gross income.

To assist purchasers to stretch their loan to cover the cost of a house, Homeswest can take a shared equity in the property of up to 30 per cent.

Loans under the scheme can also be used by tenants in Aboriginal housing properties to buy their rental home under the Homeswest 'Right to Buy' scheme.

The scheme is funded through Homewest's Real Start and Cash Assistance programs and is expected to cater for about 60 loans this financial year. About 46 loan applications have been approved so far.

Housing Minister Graham Kierath said that the cherished dream of most Australian people to own their own homes had not been easy for Aboriginal people to achieve.

"The dignity that comes from owning your own home is one of the most fundamental benefits society offers," Mr Kierath said.

"This Aboriginal Home Ownership Scheme is designed to address that imbalance and bring home ownership within the reach of more Aboriginal people."

"A recent Aboriginal and Torres Strait Islanders' Commission (ATSIC) and a State Government social justice report into indigenous housing needs highlighted just how few Aboriginal people own their homes.

"The Royal Commission into Black Deaths in Custody highlighted the same problem."

Mr Kierath said that meeting the challenge of improving housing standards of indigenous Australians was one of the main tasks facing government at all levels.

"One of the advantages of the scheme is that,in some cases, applicants on social security benefits may be able to qualify," he said.

The scheme is run by Robert Isaacs. He can be contacted for more information at Homeswest on 222 4733.

Media contact: Steve Manchee 481 2133