Housing crisis: More Māori are getting on the property ladder on Māori land

In his opinion, the rules and regulations regarding the effective use of Māori land were “overwhelming and bureaucratic pools”.

“So anyone who creates something like Kiwibank (has) you should pat them on the back and say thank you.”

Tauranga was one of the most expensive places to buy a house in New Zealand, and this made it difficult for local Maori to climb the property ladder.

The ability to build on Māori land made the process cheaper and more achievable, and opened up new opportunities, Stanley said.

“Worth the trip”

Demand for the recent Ngāi Te Rangi, Āhei Te Whare Hapai workshop, held with Kiwibank representatives on Kāinga Whenua loans, exceeded expectations and had to be limited to 24 participants.

Some of the key preparation messages from Tauranga Kiwibank branch manager Michelle Palmer were: “Build good financial habits, be mindful of your spending, pay off your debts and have a license to occupy.”

She told whānau she was considering applying for a Kāinga Whenua loan that achieving these goals first would help them get everything in line.

Palmer said the loan process would not happen overnight due to the complexities involved in obtaining an occupation license for multi-owned Maori land.

“But the trip is worth it. Using Whenua is something special because you know it has been passed down from generation to generation. It’s for our children so it makes more sense, it can’t be sold and it’s protected.

“You’ll also get a lower mortgage than if you were trying to buy a residential home.”

No mortgage on land

Kiwibank mobile mortgages manager Donna Neville said unlike a traditional loan the bank did not record its interest on the title, but Kainga Ora did on the house.

Neville said the land was not mortgaged and she gave the audience an overview of how the process works.

Some of these steps included consideration of benefits and risks, assessment of suitability, support from other land owners, design of a new home or mobile home, council consent, loan approval and a Māori Land Court occupancy license to meet Kainga requirements. Ora safety requirements.

No deposit was required for loans up to $200,000, and 5% interest was required for every dollar borrowed above that amount.

In most cases, KiwiSaver can also be used in conjunction with the Kāinga Whenua loan, she said.

Questions from the audience

During the korero, Neville and other representatives answered a number of questions from those who attended the event.

Question: Can money for council building permits etc. be included in the loan?

A: No, council consent is not subject to credit.

Question: What kind of house can I get a loan for?

Answer: This can be any type of housing, including mobile housing, provided that it meets the requirements of Kainga Ora, for example, it is built on stilts and has an area of ​​at least 50 sq.m.

Question: What types of fishing hooks are there?

A: If you are a couple and you both have a KiwiSaver that you want to use, and if one of those people doesn’t have an occupation licence, this can sometimes cause problems.

Question: What is the interest rate on loans?

A: When building, we typically start construction at a variable rate and you only pay interest as construction progresses. You can fix the loan when the building is completed.

Question: Can I rent out my house?

A: No, you will have to live in it, especially if you used Kiwisaver.

Question: Are there any restrictions on getting a loan if you want to build a power system, including solar?

There are no restrictions on this matter.

Question: To what extent will the bank deviate from your statements when applying for a loan?

Answer: It’s usually six months, so if you have debts such as car loans, prepayments, credit cards, personal loans, it’s best to keep them to a minimum before applying. They may actually limit the amount you can borrow.

Question: Is there an income limit for Kāinga Whenua loans?

A: No, but there are criteria for a salable asset.

Question: Can mobile home moving costs be included in the loan?

A: Yes.

Question: Can you get a Kāinga Whenua loan for Matakana Island?

A: No, credits only apply to the mainland and the North and South Island(s).

Hoping that the “dream” will come true

Roy Matthews has land and just needs a loan to build on it.

He said it would mean the world to his whānau and now he was going to get down to business.

“This will ensure the safety of our children and is our dream. Now we are simply checking whether our financial situation is ready for this process.

“We’ll probably look at building a four- or five-bedroom house.”

Henare Luatua was hoping to “get things moving” and was full of enthusiasm at the end of the Kāinga Whenua Loans session.

“All my questions were answered in the affirmative… I have wanted to return to Tauranga for a long time. Now it will actually be possible, and this is a good opportunity.”

Marama Williams said she is interested in “gaining more knowledge about what is available to us financially.”

“It was very helpful and I picked up some good tips.”

No defaults on Kāinga Whenua loans

Kāinga Ora homeownership product manager Jason Lovell said the organization had made key changes to the Kāinga Whenua loan criteria to give whānau more choice and opportunity to secure a home loan on multi-owned Māori land.

Some of these included eliminating the loan limit so the loan size was approved based on what the applicant could afford, and loan criteria were expanded to support mobile homes and off-site manufactured homes.

There have been no defaults on Kāinga Whenua Loans to date, Lovell said.

However, Kiwibank and Kainga Ora will work with borrowers to avoid this.

“In the event of default, Kainga Ora will work through the process of removing the house from the whenua and selling it,” Lovell said.

“Whenua will remain in the hands of the landowners and the borrower will have to work with Kainga Ora to pay off any outstanding amounts that cannot be satisfied through the sale of the house.”

Carmen Hall is Te Runanga o Ngāi Te Rangi Iwi Trust public affairs advisor and former Bay of Plenty Times journalist.