Report: KiwiBuild apartments too small for mortgage lending

by Krizzel Canlas20 Sep 2018

An article by TVNZ has shed light on the KiwiBuild apartments that are too small for mortgage providers to lend on.

The publication detailed enquiries made by its news bulletin 1 NEWS on the government’s new housing project.

Six $380,000 KiwiBuild studio apartments from the 340 Onehunga development in Auckland were reportedly just 39.2sqm in size. This is below the minimum 40sqm that major banks insist upon for buyers with KiwiBuild sized deposits.

TVNZ reported enquiries by 1 NEWS prompted the developer to revise the floor plans for the studio apartments to meet the 40sqm minimum design standard.

“No look, it's no big deal, it's a very, very, small difference in the floor area, actually the apartments now are going to be slightly bigger,” Housing Minister Phil Twyford told 1 NEWS.

Loanmarket director and mortgage broker Bruce Patten, meanwhile, reportedly said the 40sqm minimum requirement for an apartment has been known for some time.

“It's interesting they make these assumptions without approaching the people who are going to be funding it,” he noted.

Additionally, National MP Judith Collins told 1 NEWS Twyford should be embarrassed for not getting the details right. She reportedly described the situation as “a bit of blunder.”

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