Bank launches a housing scheme to get the tribal organisation on the property ladder
Treaty settlement tribe Ngā Potiki a Tamapāhore Trust has formally launched a housing scheme that will help Ngā Potiki families realise their dreams of homeownership.
The Ng Ngā Potiki Housing Shared Equity Scheme is one of only three shared equity housing schemes in New Zealand designed to assist first time home buyers into homeownership.
The initiative was launched in partnership with Westpac New Zealand and marks the culmination of more than twelve months work for Ngā Potiki with their advisers to design the scheme, and over eight months of negotiations with the bank to finalise the agreement.
“We are very pleased to be able to deliver this opportunity to our tribal members and provide real and direct benefits through our treaty settlement,” Ngā Potiki chairman Colin Reeder said. “We welcome Westpac as a long-term partner to Ngā Potiki.”
The scheme hopes to see Ngā Potiki contributing equity as a co-owner with tribal members to buy their first homes. Westpac NZ will provide lending to the member, who will need to satisfy the bank’s normal criteria.
“As equity builds in the property, the member will be able to buy Ngā Potiki out of the arrangement,” Ngā Potiki Housing project co-ordinator Victoria Kingi explained.
Westpac NZ CEO David McLean emphasised Westpac’s commitment to growing New Zealanders’ financial wellbeing, saying the bank is “keen to contribute to innovation that helps more New Zealanders into affordable homes.”
“We think this is a great initiative from Ngā Potiki that helps their members overcome the barrier of needing a large deposit and lowers their loan servicing cost,” said McLean. “As the owner’s income or equity rises they can then take on a greater stake until they own the whole property.”
McLean believes that shared equity is a solution that has strong potential amid the issue of housing affordability.
Ngā Potiki has approved the first 21 families who will benefit from the scheme, with construction to commence in October.
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