Kiwisaver Changes allow individuals to build and purchase homes on multiple-owned Māori land

The Government’s Taxation (KiwiSaver HomeStart and Remedial Matters) Bill has passed through Parliament and will enact several major changes to the KiwiSaver first home withdrawal scheme.

Since 2015, the KiwiSaver first home withdrawal scheme has applied to the building or purchasing of a dwelling on multiple-owned Māori land. There are some conditions that you will need to meet. For example, you will need to provide evidence of your right to occupy the land. As the scheme only applies to the dwelling and not the land, it must be able to be moved of the land if required. Consequently, banks do not provide loans for houses on Māori land, so if you are a first home buyer looking to build on Māori land you will need both KiwiSaver funds and additional cash to fund the development.

In addition to the KiwiSaver scheme, you may be eligible for the Kāinga Whenua loan that is administered by Kāinga Ora and Kiwibank that allows for borrowing up to $500,000 for each proposed dwelling. Market interest rates and a security over the dwelling will apply to the loan.

You will also need to meet the general KiwiSaver criteria including being a KiwiSaver member for at least three years and you will need to live in the property you are purchasing. 

If you are looking to purchase your first home and think this could be relevant to you, please get in touch.