Summarised by Centrist
Newsroom reports that BNZ (Bank of New Zealand) has unveiled a Māori land-lending framework aimed at enabling mortgage lending on communally owned properties. The aim is to foster increased homeownership within Māori communities. Developed in partnership with Ngāti Whātua Ōrākei, this allows hapū members, who meet BNZ’s regular home lending criteria, to secure home loans for papakāinga housing on Ngāti Whātua Ōrākei Trust-owned land at standard interest rates.
Historically, financing for housing on Māori-owned land has been challenging due to unique ownership structures and land transfer restrictions, hindering Māori homeownership. BNZ’s model employs standard leasehold mortgage lending practices, preserving land integrity and control with the iwi or hapū in case of mortgage distress. This initiative, which BNZ plans to share with other banks, aims to expand access to finance for development on Māori land throughout New Zealand, potentially transforming rural communities.