13 Oct 2012

Loan changes may help Maori landowners

10:45 pm on 13 October 2012

Changes the Government has made to the Kainga Whenua loan scheme may make it easier to fund houses built on Maori land held by multiple owners.

Associate Housing Minister Tariana Turia announced the changes during her visit to Orakei Marae in Auckland on Friday.

The scheme is jointly run by Housing New Zealand and Kiwibank. It originally allowed a one or two-income household earning up to $85,000 a year to borrow money with a ceiling of $120,000 for three or more borrowers.

The income cap has been lifted to $120,000 for a one-income earner and $160,000 for two or more borrowers.

Mrs Turia says the changes also include opening the fund to all individual borrowers who can service a mortgage, not just first home buyers.

She says improved accessibility to the Kainga Whenua loan scheme will benefit whanau, hapu and Maori land trusts.

The changes come into force on 1 December this year for individuals and in 2013 for trusts.