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NDIS Home Loans

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What is the NDIS and SDA and how are they connected?

The National Disability Insurance Scheme, or more commonly referred to as the NDIS, was established in 2013 to support people with disability and provides funding to eligible individuals (participants) so that they can purchase the disability related goods and services that they need. As at 31 March 2023 there were over 550,000* active participants with approved NDIS plans.

Specialist Disability Accommodation (SDA) is specifically designed housing for approved NDIS participants with extreme functional impairment or very high care needs. SDA is funded under the NDIS and assists participants to meet their home accessibility needs, live more independently and improve the delivery of their person-to-person care services. Dwellings must be independently certified, registered with the NDIS and enrolled for SDA use.

*NDIS Quarterly Report (excludes children accessing early connections)

Is there a need in Australia for SDA?

Over 30,000 NDIS participants are expected to be eligible for SDA funding and there is an annual budget of $700m of which only half is being spent. The majority of existing SDA is older stock and group homes which are not meeting the needs of eligible participants. Moreover, there are nearly 1,500 participants stuck in hospitals and more than 3,000 people under 65 living in residential aged care many of whom will meet the eligibility criteria for SDA funding. Along with the investment returns, SDA is socially impactful and improves lives.

What is an NDIS Loan for?

An NDIS loan has been designed to assist investors or NDIS recipients buy or construct a purpose built SDA certified and enrolled property.

Homestar Finance has inhouse loan specialists who can guide you though the loan process journey from beginning to end or alternatively we can assist in refinancing your current SDA enrolled property.

How does it differ from a traditional home loan?

As a general rule, there is no difference, the application process and assessment criteria are the same. The main point of difference is the security as we need to ensure the property is SDA dwelling is certified and enrolled with the NDIS. We use specialist valuation firms for this purpose which does result in higher valuation costs.

Where can I find out more information?

SDA investment comes with unique risks so making an informed decision about getting involved is critically important. A great starting point is the NDIS/SDA website Specialist disability accommodation | NDIS where you will find information on;

  • SDA Rules – requirements and obligations for owning and operating SDA
  • Design Standards
  • Pricing Arrangements
  • Dwelling enrolment and vacancies
  • Data on SDA and Supported Independent Living (SIL) usage
Buying a home or property often requires borrowing money from a lender, and calculating interest on a home loan is an important step in working out how much your monthly payments will be.

SDA is a participant led market with a range of investment returns possible based on the type, design and location of the property.

Engaging with reputable SDA Providers is essential as payments from the NDIS go directly to the registered SDA Provider for that specific property starting from when an eligible and approved participant has moved in.

Are you ready to save on your home loan? We’ve made it easy!

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Let’s talk

Simply fill in an online form or call us to get your home loan journey started! We’ll support you through the process from start to settlement.

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Find out how much $ you qualify for

Based on your home loan needs, our team will work with you to determine how much you can qualify for. Then you can shop around for a property with confidence knowing how much you can afford!

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One-on-one chat

After liaising with one of agents and booking an appointment, a Loan Specialist will go through specific requirements for your home loan, and work out which option is best for you. This is where we’ll also share with you what documents are needed, and completed the identification process.

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Processing

Once you’ve submitted all your documents, you can leave the rest of us. Our team will do the ID checks, the credit checks, and will organise the property valuation…packaging your home loan application for approval

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Submission

Your home loan application will be sent for final approval.

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Settlement

Our team will liaise directly with you and any intermediaries to ensure a smooth settlement of your home loan. Enjoy your savings!

Check out our home loan calculators

Working out potential home loan repayments? Looking at loan refinancing options? Just curious? Our range of calculator tools can help you make informed decisions on the best products or offerings to add value, reduce repayment stress and save money.

Let’s get to know each other!

Talk to us about your home loan needs and we will package up a home loan with the features you want and tailor the rate to your circumstance.

    Home loan enquiry

    Get started. Want to apply or have a chat? Complete the form below, and we’ll contact you within 24 hours.








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    Understanding your home loan

    What do I need to know before applying?

    All you need to begin your application online are details of your income, current credit obligations (like personal loans and car loans), available credit limits (from credit cards, store cards and interest fee accounts) and the amount you are looking to borrow.

    Can I apply for a Homestar Finance home loan face-to-face with a lending specialist?

    In general, we do not offer face-to-face appointments because this would significantly add to the cost of providing you with your loan. We would need to pass this cost on to you in the form of higher interest rates or fees – which we really do not want to do! Our Lending Specialists use great loan processing technology so that we can do all the things that you would typically expect in a face-to-face loan application process by phone- and we can do it in a fraction of the time that a face-to- face meeting would take.

    What is Lenders Mortgage Insurance (LMI)?

    Lenders Mortgage Insurance (LMI) is insurance that protects the lender in the event the borrower defaults and the security property is sold and the funds from the proceeds of the sale are not enough to discharge the loan. The LMI then pays the Lender the shortfall. The rights to recover the shortfall from all of the parties on the loan (borrowers) are then transferred across to the LMI who will pursue the shortfall. The cost of LMI insurance is a one off payment at the start of the loan. It is usually added to the loan amount and should not be confused with Building Insurance or Income Protection Insurance

    What is a comparison rate?

    A comparison rate is a legislated calculation which gives consumers an idea of the actual cost of the loan, as it includes the interest rate and the standard fees applicable to that loan. It avoids consumers being misled by lenders advertising a lower interest rate, but charging high fees to compensate for the low rate.

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    DISCLAIMER: Terms, conditions and eligibility criteria apply to all our loan products and features. Fees, charges and disbursements are payable. Final approval is subject to credit assessment. Information valid as at 18th April 2024 which is subject to change without notice. Please consider if the product is appropriate for your individual circumstances. If you need assistance or have any questions about a product or feature and its suitability, please contact our Loan Specialists.

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