Whenua MΔori mortgage breakthrough for whΔnau dreaming of home ownership
Whakaata MΔori
15 Jan, 2024 07:30 AM2 mins to read
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NgΔti Whatua ΕrΔkei and BNZ are designing a new model that may help MΔori home ownership. Photo / Whakaata MΔori
A new lending model could allow iwi to unlock whenua MΔori for housing without their land being put at risk, a report by
The Post says.
Historically, banks have been reluctant to give home loans for housing on MΔori-owned land because they are unable to secure the loans against the land - but now a new model developed by BNZ and NgΔti WhΔtua ΕrΔkei is offering a breakthrough for iwi.
Under the model, hapΕ« members, who meet the bankβs normal home-lending criteria, get loans to buy homes on iwi-owned land and the iwi agrees to step in and buy the mortgages if borrowers fail to make repayments.
The model has been developed with NgΔti WhΔtua ΕrΔkeiβs 24-home Hawaiki St development in TΔmaki Makaurau in mind.
NgΔti WhΔtua ΕrΔkei Whai Rawa chief executive Grant Kemble said the model enables whΔnau to realise a dream.
βThe framework has made homeownership more accessible for our whΔnau.β
Whetu Rangi, BNZβs head of MΔori banking, indicated the model could remove a significant barrier for MΔori home ownership,
The Post said.
βOne of the biggest struggles is the ability to unlock whenua MΔori as a financial asset, especially utilising it for residential purposes. We think this is the first step in a long journey, and is hopefully something we will see again on a regular basis.β
A new lending model could allow iwi to unlock whenua MΔori for housing.
www.nzherald.co.nz