Rent, Buy or Own
Introducing Kainga Whenua
Kāinga Whenua loan — lending for housing on multiple-owned Māori land
Housing New Zealand and Kiwibank are working together to help Māori to achieve home ownership on their multiple-owned ancestral land. They are introducing a new loan called Kāinga Whenua.
If you have a right to live on multiple-owned Māori land (hold a licence to occupy), a Kāinga Whenua loan allows you to build, purchase or relocate a house on that land.
Kiwibank will approve and provide the loan, and you will need to meet their standard lending criteria as well as the Kāinga Whenua criteria. Housing New Zealand will provide lenders mortgage insurance for the loan. A Kāinga Whenua loan is secured only against the house, not against the house and land as with most home loans.
With a Kāinga Whenua loan, Kiwibank can lend 100 percent of the house building costs or the purchase price of the house, up to $200,000, subject to certain conditions. These conditions include your licence to occupy the land, a valuation from a registered valuer and a satisfactory building contract. No deposit is required for a loan below $200,000.
Kāinga Whenua loans are only available to those people that have no other access to finance to build, re-locate to or buy on their multiple-owned Māori land.
A multi-borrower option is available with Kāinga Whenua that allows three or more borrowers in a single household to apply for the loan and contribute to the loan repayments. This is aimed at multi-generational households.
What can I build/relocate with a Kāinga Whenua loan?
Under a Kāinga Whenua loan there are certain requirements of the house you are planning to build, purchase or relocate to the land.
The requirements of a Kāinga Whenua loan are that the house needs to be:
- built on wooden piles
- one storey of at least 70 square metres
- have reasonable road access
Am I eligible for a Kāinga Whenua loan?
To be eligible for a Kāinga Whenua loan you need to meet all of the following requirements:
- You earn up to $85,000 a year as a one or two income household. For three or more borrowers, the household can earn up to $120,000.
- Work within a realistic travelling distance from your work to the block on which you want to live.
- You will live in the house (it is not for rental properties or holiday homes).
- You are a first home buyer, or if you are not, be in the same financial position as a typical first home buyer in terms of assets and income, or you are unable to access finance elsewhere.
- You need to have a licence to occupy the land you wish to build on.
- The land needs to be Māori land that can’t be mortgaged, and either owned by multiple beneficial owners or have the land ownership vested in trustees of a trust or incorporation, created under the Te Ture Whenua Māori Act 1993.
- You have an acceptable credit history
Applying for a Kāinga Whenua loan step by step
If you can meet all of the eligibility criteria, there are 11 steps you will need to complete.
Please note this may end up being a long process due to the complexities involved in securing a licence to occupy multiple-owned Māori land.
For full details of the Kāinga Whenua loan criteria and process, see the Kāinga Whenua Loan guide. To get a copy or to discuss any questions you may have, call Housing New Zealand on 0508 935 266. You can download a copy of the "Kainga Whenua Loan Guide" (PDF Document, 2135kb) .
Step 1. Decide to live on your multiple owned Māori land
Consider the benefits, risks, and costs of home ownership in a multiple owned Māori land situation
Step 2. Apply for a Kainga Whenua pre approval
Kiwibank can assess your eligibility for Kāinga Whenua and advise how much money you could borrow.
Step 3. Seek licence to occupy
A licence to occupy gives permission to live on the multiple-owned Māori land. This can be a lengthy process when there are numerous land owners or trustees.
Step 4. Design of home
You need to design your home bearing in mind the requirements of a Kāinga Whenua loan (see ‘What can I build/relocate with a Kāinga Whenua loan?’ above).
Step 5. Find a builder and produce a budget and plan
Your budget will need to meet Kiwibank’s lending criteria. You must also obtain all the council consents you need to comply with local bylaws.
Step 6. Loan approval from Kiwibank
If your application fits with the Kāinga Whenua eligibility criteria, and Kiwibank’s lending criteria, Kiwibank will approve the loan.
Step 7. Signing of the tripartite agreement
The tripartite agreement is made up of the licence to occupy (including a site licence) and a deed of mortgage. It needs to be signed by you, the land owners and Housing New Zealand.
Step 8. Registration with the Māori land court
The Māori land court need to register your licence to occupy.
Step 9. Build commences
Build or relocation starts according to the design, plan, and budget you submitted as part of your application.
Step 10. Progressive draw downs
Timings and the finer details for progressive draw downs will be unique to every Kāinga Whenua loan
Step 11: Building complete
Once the building is complete you are now able to move in. Congratulations, you now have your own whare on your ancestral Māori land.
We’re here to help
Building on multiple owned Māori land can be a long and complicated process. Because of this, Housing New Zealand is here to support you through the process.
To talk to us about the assistance we can offer, call us on 0508 934 266.
To ascertain your eligibility for a Kāinga Whenua loan from Kiwibank, call Kiwibank on 0800 272 278.
