If you meet all the Eligibility Criteria, just follow the steps outlined below to build a wonderful new Federation Home on your land!
1 APPLY FOR A KĀINGA WHENUA PRE-APPROVAL
Kiwibank can assess your eligibility for Kāinga Whenua and advise how much money you could borrow. See below for further info on this.
2 SEEK A ‘LICENCE TO OCCUPY’
A ‘licence to occupy’ gives permission to live on the multiple-owned Maori land. This can be a lengthy process when there are numerous land owners or trustees. Maori land court have people who can guide you through this process, just call Maori land court to make an appointment..
3 MEET WITH FEDERATION HOMES AND DESIGN YOUR HOME
When designing your home with you, Federation Homes will include the requirements of a Kainga Whenua loan (see ‘Eligibility requirements for Kāinga Whenua loans’ alongside).
4 SIGN YOUR FIXED PRICE BUILDING CONTRACT
Federation Homes will provide a fixed price building contract for your total peace of mind. A copy of this contract will also be required by kiwibank for finance approval.
5 KIWIBANK FORMALLY ISSUES LOAN DOCUMENTS
If your application fits with the Kāinga Whenua eligibility criteria, and Kiwibank’s lending criteria. Kiwibank will formally approve the loan.
6 SIGN THE ‘TRIPARTITE AGREEMENT’
The ‘tripartite agreement’ is made up of the licence to occupy (including a site license) and a deed of mortgage. It needs to be signed by you, all the land owners and Housing New Zealand.
7 REGISTER WITH THE MAORI LAND COURT
The Maori Land Court needs to register your licence to occupy.
8 BUILDING STARTS
Build starts according to the design, plan, and fixed price contract you agreed too. The timing and the finer details about the way the loan ‘draws down’ in stages will differ for each Kāinga Whenua loan. Federation Homes will outline this as part of the fixed price building contract.
9 CELEBRATE – THE BUILDING IS COMPLETE!
Celebrate – your new home is now complete and you can move in
KĀINGA WHENUA LOANS
The Kāinga Whenua home loan, available through Kiwibank, aims to resolve the difficulties of building on multiply owned Māori land. Housing New Zealand takes security over the house – but not the land, and insures the loan. A borrower is able to access no deposit finance up to $200,000 in order to build a home on their family land without mortgaging the land directly. Loans of higher value are often available, but a deposit will be required.
You need to be able to gain a licence to occupy on the land you wish to build on. You will need to meet standard Kiwibank lending criteria, as well as the Kāinga Whenua criteria. The house you are planning to build must be built on piles be one storey of at least 70 square metres and have reasonable road access if no alternative security is provided. The land needs to be Māori land that can’t be mortgaged, and must be owned by multiple beneficial owners or have the land ownership vested in trustees of a trust or incorporation, created under Te Ture Whenua Maori Act 1993. Land for social housing development received by iwi as part of their Treaty of Waitangi settlement is eligible for a Kainga Whenua loan.
LICENCE TO OCCUPY
The term, ‘licence to occupy’ means “a legal right to occupy the land, granted by owners of the land”. This allows Housing New Zealand (as insurer of the loan) to take security over the house to be built, which is a requirement of the loan. The Māori Land Court will register the Licence to Occupy against the land block and licenses can often be passed down through future generations.
This is an easy but often time consuming process and we advise you seek advice from Maori Land Court direct before starting your application.
Want more info?
Contact Federation Homes, we’re here to help…
Phone: 07 552 4002