Rent, Buy or Own
Kainga Whenua
Read the Maori language version of this information
Introducing Kāinga Whenua — lending 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. It’s called the Kāinga Whenua loan.
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 its standard lending criteria as well as the Kāinga Whenua criteria. Housing New Zealand will provide 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 commutable distance of 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
- 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. Below is a simple step by step process. For more detailed information, talk to a Housing New Zealand representative.
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 Kāinga 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 with the conditions of a Kāinga Whenua loan in mind (see earlier in this brochure).
Step 5. Find a builder and produce a budget and plan
Budget will need to meet Kiwibank’s lending criteria and ensure you 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 own criteria for lending, Kiwibank will issue a loan approval
Step 7. Signing of the tripartite agreement
The tripartite agreement is made up of the licence to occupy, a site licence and a deed of mortgage. It is a contract between 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
According to the design, plan, and budget you submitted as part of your application.
Step 10. Progressive draw downs
Timings and 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 home 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 935 266.
