Our home ownership pathway in Burketown, Queensland.
In Queensland's gulf region, it has been virtually impossible for locals to buy their own home. That’s why were proud to have helped pioneer a new homeownership pathway in the remote community of Burketown in far north Queensland, which will help up to 21 mostly First Nations tenants buy their own home.
And for Maddy and Jordan , it's a dream come true.
“We didn’t grow up seeing our people owning their own homes and it just goes to show that anything is possible if you work for it,” said Maddy.
Developed by Head Start Homes (HSH), Westpac and Burke Shire Council, the pathway enables Burke Shire Council tenants to get a home loan without the need for a deposit and mortgage insurance.
First Nations sisters Madison and Jordan Marshall
This pathway enables Burke Shire Council to sell its properties at a 40% discount to its First Nations tenants.
Westpac then accepts the valuation price instead of the sale price (normally, it would be the lower of the sale price or valuation price). This means that the Loan to Value ratio is around 60%, resulting in no deposit or Lenders Mortgage Insurance requirement for the home buyer.
"We have 21 houses we have approval to sell. Westpac has said yes to nine loans and we've already sold three," said Burke Shire Council Chief Executive Daniel Mckinlay.
HSH Founder & Managing Director, Stephen Woodlands said Burke Shire Council had been trying to improve home ownership options for its tenants for the past decade.
“This home ownership pathway was made possible by HSH’s knowledge, expertise and network of partners and volunteers,” Stephen said.
“The solution was created in a Head Start Homes ‘innovation hub’, which comprises a number of specialists across the housing and finance sector who are passionately committed to our vision of a safe and stable home for everyone with fair and practical pathways into home ownership.”
Around 200 people live in Burketown and there are 48 staff at Burke Shire Council.
Maddy Marshall, Corporate Services and Governance Manager at Burke Shire Council, along with her sister, Jordan are the first two tenants to be approved for home ownership in Burketown, after receiving approval of their Westpac home loans.
“I’m very excited. My sister Jordan and I are the first in our family to be home owners and we never thought this would happen,” Maddy said.
“To have the opportunity to go through the process and buy a home in our home town has been wonderful,” Maddy said.
Maddy and Clare Keenan (former CEO of Burke Shire Council) on the day Maddy purchased her home
Maddy, 26, and Jordan, 29, have been renting a council house together for the past eight years.
Dan McKinlay, Chief Executive Officer at Burke Shire Council, said the home ownership program, approved by the Council in August 2020, had been very well received by the community.
“Aboriginal home ownership is extremely low across Australia - and in remote communities like ours, home ownership - even things like car ownership - is much more of a challenge.
“Maddy and Jordan are both what I call as being ‘in the cycle’. Every generation of their family has lived in state homes all of their lives.
“When you own your own home, you have so much more pride in your place - so this is a monumental change for them to be owning their own homes for the first time.
“As it turns out, the mortgage payments are less than the rent they had been paying Council. Although, they have had to learn all about budgeting, for paying rates, home and contents insurance and general household bills.”
Dan said the fact that Westpac had come to the party was “just wonderful” and the work of Head Start Homes had been instrumental in making it all happen.
He also acknowledged the Queensland State Government, who gave ministerial exception not to auction or tender council’s housing to facilitate purchase by staff, and Brisbane solicitors, McCulloch Robinson, who agreed to act on behalf of staff pro bono.
HSH will continue to assist Burke Shire Council with identifying additional lenders as the program rolls out.
“we will also work with our partners to enhance this pathway as a core offering to our clients, and explore opportunities for this model to be replicated across Australia” said Stephen Woodlands
Jordan and Clare Keenan (former CEO of Burke Shire Council) on the day Jordan purchased her home.
“This project has allowed residents of Burketown to purchase a home in a community they call their own, something that was previously impossible due to prohibitive lending conditions. For some, they will be first generation of their First Nations families to ever realise the dream of home ownership. ”
Checkout the ABC article to learn more
This story is also featured on ABC online.
“Aboriginal home ownership is extremely low across Australia - and in remote communities like ours, home ownership - even things like car ownership - is much more of a challenge.”