Bank shares groundbreaking framework with other institutions
Bank of New Zealand (BNZ) has joined forces with Ngāti Whātua Ōrākei to launch a new funding framework that facilitates housing on iwi land, unlocking homeownership aspirations for Māori families.
A total of 24 new homes are currently under construction on Hawaiki St, Ōrākei, in Tāmaki Makaurau, Auckland, thanks to this collaboration.
Under the newly established model, hapū members meeting BNZ’s standard home lending criteria can secure a BNZ home loan for papakāinga housing on Ngāti Whātua Ōrākei Trust land at standard home loan interest rates.
Grant Kemble, CEO of Ngāti Whātua Ōrākei Whai Rawa, said the framework makes homeownership more accessible for Māori whānau and thanked BNZ for helping make this possible.
“BNZ’s commitment to work alongside us, understand our vision, and persevere through complex legal arrangements has been commendable,” Kemble said.
“For our people that will move into these new homes, it will be the realisation of a dream: the security of homeownership on their whenua.”
Historically, financing for housing on Māori-owned land faced challenges due to unique ownership structures and land transferability restrictions.
The new framework addresses these issues by employing standard leasehold mortgage lending practices, supported by a confidential Deed of Understanding. This ensures that land integrity and control remain with Ngāti Whātua Ōrākei, even in the event of a distressed mortgage, striking a balance between the bank’s security requirements and the enduring land rights of the iwi.
Significant legal work, aided by pro bono support from Buddle Findlay and Russell McVeagh, was instrumental in developing this model.
BNZ is optimistic about the framework’s potential for wider use among other iwi. The bank intends to collaborate with other financial institutions, sharing this approach to enhance access to financing for Māori land development nationwide.
BNZ CEO Dan Huggins (pictured above) stressed that the well-being of the Māori people and businesses is crucial to the overall prosperity of Aotearoa.
“Considerable thought has been invested in designing this framework to be as flexible as possible, and it has been shared with other financial institutions in the hope of extending its benefits to more iwi across New Zealand,” Huggins said.
“We are committed to helping New Zealand and New Zealanders to thrive and prosper. Our collaboration with Ngāti Whātua Ōrākei is another example of how we can achieve this. We hope this example will help more iwi to assist their people into warm, dry homes of their own.”
In addition to the innovative funding framework, BNZ has provided a $20 million social loan, certified by EY New Zealand, to support the construction of the homes.
Construction has commenced, with roofing expected before the summer holidays, and the completion of the homes is anticipated in 2024.
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