Housing New Zealand and Kiwibank are working together to help Māori to achieve home ownership on their multiple-owned land through the Kāinga Whenua loan scheme.
If you have a right to live on multiple-owned Māori land (hold a licence to occupy), a Kāinga Whenua loan for individuals allows you to build, purchase or relocate a house on that land. The loan can also be used for repairs and maintenance for an existing house on multiple-owned 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 for individuals, Kiwibank can lend you 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.
Exceptions to the loan cap will be considered where you can demonstrate the need for a larger house or where significant infrastructure costs will be incurred.
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.
Am I eligible for a Kāinga Whenua loan?
To be eligible for a Kāinga Whenua loan for individuals, you need to meet all of the following requirements:
the land needs to be Māori land that can’t be mortgaged (including land received by iwi and hapu as part of a Treaty settlement) and that is either owned by multiple beneficial owners or the land ownership is vested in the trustees of a trust or incorporation created under Te Ture Whenua Māori Act 1993
you need to have a licence to occupy the land you wish to build on
at least one borrower needs to live full-time in the house (i.e. it is not to rent or for use as a holiday home)
you need to provide satisfactory proof of income to Kiwibank
you have a good credit history that is acceptable to Kiwibank.
Note: Recent changes (external link) to the Kainga Whenua Loan Scheme removed the income caps for individuals.
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 piles
one storey of at least 70 square metres
have reasonable road access
be located on the mainland of the North or South Islands.
To find out more about the application process and how the loan works download the loan guide.