NDIS Loans: Discover the Impact of NDIS Home Loans for SDA Properties

Want to Invest and Make a Difference?

But what if your investment could do more than just generate income? What if it could also provide essential housing for those who need it most? That’s exactly what investing in SDA properties offers—a chance to secure high returns while making a positive social impact.

In this guide, AxJ Finance Brokers will explain everything you need to know about NDIS loans, how they support SDA investments, and why this unique opportunity is worth considering. No matter if you’re a seasoned investor or just getting started, we’re here to help you make informed decisions and guide you through this rewarding journey.

What exactly is the National Disability Insurance Scheme (NDIS)?

The NDIS is a transformative government program that supports Australians with disabilities, providing funding to eligible participants so they can access the services and support they need to live more independently. With over 550,000 participants currently benefiting, the NDIS helps individuals live more independently based on their unique needs. It’s not just about funding—it’s about changing lives.

What is Specialist Disability Accommodation (SDA)?

So, where does SDA fit in? SDA refers to homes specifically built or modified for people with significant functional impairments. These aren’t just houses; they’re safe, accessible sanctuaries equipped with features like widened doorways, accessible bathrooms, and cutting-edge assistive technology to ensure that residents can live comfortably and independently.

Think about it—many people with disabilities are stuck in inappropriate living situations, like aged care facilities or hospitals, simply because there aren’t enough suitable homes available. This is where you, as an investor, can make a real difference.

How Do NDIS and SDA Work Together?

The NDIS funds a variety of participant needs, including housing. While not all participants require SDA, those with complex needs often do. By investing in SDA-compliant properties, you’re not just putting money into real estate; you’re providing a home for someone who desperately needs it. This is a chance to earn strong returns while making a real difference in the lives of others.

Why is There a Need for SDA in Australia?

The demand for SDA properties far exceeds the current supply, leaving many people with disabilities in unsuitable living situations. By investing in SDA, you can help bridge this gap, providing safe and suitable homes for those who need them most. This isn’t just about financial returns—it’s about addressing a pressing social issue while benefiting from a stable, high-demand market.

Curious about how much you could earn while making a difference? Get a free assessment to see how an NDIS loan can fit into your investment strategy. Read More

What is the Purpose of NDIS Loans?

NDIS home loans are specifically designed to support investors in purchasing or building SDA-compliant properties. They come with features tailored to make the investment process smoother and more accessible, whether you’re an experienced investor or just starting out.

Why Invest in SDA-Compliant Properties?

Investing in SDA properties offers a blend of financial and social benefits:

✓ High Rental Yields: SDA properties can generate rental yields significantly higher than traditional properties, often ranging from 10% to 15%.

✓ Social Impact: You’re providing a safe and dignified home for people with disabilities, directly improving their quality of life.

✓ Government Support: Strong backing from the Australian government ensures stability and long-term demand.

Ready to maximise your returns while making a positive impact? Start your investment journey today.

Key Features of NDIS Loans

✓ Choose between fixed or variable rates to suit your financial strategy.

✓ These features help you manage your loan effectively, reducing interest costs and offering greater flexibility.

✓ Pay a little more whenever you can to finish paying off your loan sooner.

✓ Access funds you’ve already paid into your loan, providing liquidity when needed.

✓ Manage your loan conveniently via online platforms.

These features aren’t just perks—they’re designed to provide you with the flexibility and control you need as an investor in a niche market.

Want to explore the best loan options for you? Connect with our mortgage brokers to find out more.

Am I Eligible for an NDIS Loan?

You might be thinking, “This sounds great, but do I qualify?” Here’s a quick breakdown of the eligibility requirements:

✓ Residency Status: Be an Australian citizen or permanent resident, or hold a suitable visa while living and working in Australia.

✓ Income Verification: PAYG employees need at least 12 months of employment, while self-employed applicants must show two years of consistent income.

✓ Credit History: A good credit history is essential. If there are issues, consult with your broker early on.

✓ Documentation for Self-Employed: Provide tax returns showing profit for both your business and personal income over the last two financial years.

Fees and Charges: What to Expect

Investing in SDA properties involves specific costs. Being aware of these fees will help you plan your investment budget effectively:

An annual fee of $295 covers the specialised nature of NDIS home loans and ensures you get the right support.
Expect valuation fees starting from $2,800. Construction progress valuations will add to this, ensuring your property meets SDA standards.
A $750 construction administration fee is payable at settlement, along with a construction risk fee based on your Loan-to-Value Ratio (LVR). These protect both you and the lender.
Legal fees start at $550, plus any disbursements, with a $795 discharge fee when you close the loan. These are standard costs for setting up and finalising your loan.

Fees can change, so stay in touch with your finance broker for the latest updates. They’re there to help you navigate these costs and keep your investment on track.

Got questions about costs? Contact us for a detailed fee breakdown and personalised advice.

NDIS Loans vs. Traditional Home Loans

You might be thinking, “Aren’t all home loans the same?” Not quite. When you’re investing in SDA properties under the NDIS, there are some key differences to keep in mind.

Property Certification: SDA properties must be certified and meet strict NDIS standards.
Valuation Complexity: Higher valuation costs due to the specialised nature of SDA properties. The properties undergo a rigorous assessment to ensure compliance with NDIS requirements, which can significantly impact the investment value.

Ready to explore your options? Let’s compare NDIS loans with traditional home loans to find the best fit for you.

Steps to Secure an NDIS Investment Loan

Ready to take the plunge into SDA property investment? Here’s how you can secure an NDIS home loan and start your journey toward a rewarding investment.

Step 1: Find an SDA-Compliant Builder

Work with a builder experienced in constructing SDA properties to ensure compliance and avoid potential issues that could affect the certification process.

Step 2: Meet LVR and Deposit Requirements

Typically, an LVR of up to 80% is required, meaning a deposit of at least 20%.

Step 3: Understand SDA Design Regulations

Ensure your property meets all design standards to qualify for NDIS funding. This may include features like reinforced walls, automated doors, or sensory rooms.

Need help navigating these steps? Get in touch with our mortgage experts for advice you can trust.

Tips for a Successful Loan Application

1. Get Pre-Approval Early

Securing pre-approval before you start looking for properties will make the entire process smoother. It shows sellers and agents that you’re ready to move forward and can give you a clearer picture of your borrowing capacity.

2. Organise Your Documents

Having all your financial documents in order—income statements, tax returns, proof of deposit—will streamline the application process.

3. Work with a Specialist Broker

NDIS lending has unique requirements, so working with an NDIS loan expert can be invaluable. They can guide you through the complexities and help you find the best loan product for your needs.

4. Define Your Goals

Are you in it for the long-term rental income, the social impact, or both? Being clear about your goals will help you make informed decisions at every stage of the process.

Want to boost your chances of approval? Get in touch for tailored tips and advice.

Connecting Investors with SDA Participants

Once your property is ready, finding suitable tenants is crucial. Here’s how to connect with NDIS participants seeking SDA housing:

✓ Advertise SDA Vacancies: Use the NDIS provider finder tool and specialised real estate platforms to reach a broader audience.

✓ Partner with SDA Providers: They can manage the relationship between you and the tenants, ensuring that your property remains compliant and well-maintained.

✓ Utilise Local Networks: Community organisations and local networks can be valuable in finding the right tenants for your property.

Need help finding tenants? We’ll assist you in finding the right participants for your property.

Borrowing Capacity and Loan Limits

Maximum LVR for SDA Properties

Typically around 80%, although it can be lower depending on risk factors and property specifics.

Borrowing Limits Based on Property Type and Location

High-demand areas or properties with unique features may have higher borrowing limits, while properties needing significant modifications or located in less desirable areas might face stricter criteria.

Many NDIS lenders and brokers offer free assessments to help you understand your borrowing capacity and choose the best loan products for your needs without any obligation.

Curious about your borrowing capacity? Get a free assessment to see how much you can borrow.Read Less

Ready to Make a Meaningful Investment?

Investing in SDA properties is more than just a financial decision—it’s a way to make a difference in the lives of people with disabilities. By providing safe and accessible homes, you’re helping to address a critical need while also benefiting from a stable and high-yield market. Whether you’re looking to expand your investment portfolio or are simply passionate about making a positive impact, this is an opportunity worth exploring.

Ready to take the next step? Reach out to us for support, advice, and to learn more about how NDIS loans can help you turn your investment into a meaningful contribution to the community. Let’s work together to build a brighter future, one home at a time.

Frequently Asked Questions (FAQs)

NDIS funding varies depending on the needs and goals of each participant. The funding is individualised and can cover a range of supports and services, including daily living assistance, equipment, and therapies. Participants work with a planner to create a personalised plan that outlines the level of funding they will receive to achieve their goals.

No, the NDIS does not directly fund the purchase of a house. However, it can provide funding for modifications to make a home more accessible or for rental assistance under the Specialist Disability Accommodation (SDA) framework. SDA funding helps participants with very high support needs to live in suitable housing.

You can claim a wide range of supports and services under the NDIS, such as daily personal care, therapy services, assistive technology, and home modifications. The key is that these supports must be “reasonable and necessary” to help you achieve your goals and live as independently as possible.

Unused NDIS funding cannot be rolled over to the next plan period. Any unspent funds will expire at the end of your current plan. It’s important to review your plan regularly with your support coordinator to ensure you are using the funds effectively to achieve your goals.

NDIS is available to Australian citizens, permanent residents, and those on a Protected Special Category Visa. Individuals must also be living in Australia and meet the eligibility criteria related to age and disability to access NDIS funding.

While the NDIS isn’t designed to make profits, investing in Specialist Disability Accommodation (SDA) through it can be a great way to earn. By providing housing for NDIS participants with high support needs, investors often see higher rental income compared to regular properties.

The NDIS does not cover costs that are considered everyday living expenses, such as food, rent, or utility bills. It also doesn’t cover services that are the responsibility of other government systems, like medical costs, education, or housing purchases. Funding is provided only for supports that are deemed "reasonable and necessary" for achieving the participant’s goals related to their disability.