BNZ has welcomed the Government’s introduction of a $900m loan guarantee scheme aimed at helping registered Community Housing Providers (CHPs) access affordable finance to build more homes for New Zealanders in need.
Under the new initiative, the Crown will guarantee 80% of eligible CHP lending, allowing participating banks to offer more competitive interest rates and lending terms. The move is designed to accelerate the delivery of social housing and address the needs of the more than 19,000 applicants currently on the Housing Register waiting list.
Kieran Ryan, general manager of property finance at BNZ, said the scheme would make a meaningful difference for organisations supporting vulnerable New Zealanders. “The vital work that Community Housing Providers do by supporting vulnerable New Zealanders into homes, has often been challenged by the cost of accessing the funding needed to progress developments,” he said. “The Government’s scheme changes that equation, reducing risk for lenders, and enabling financing to CHPs that better reflects long-term, stable revenue from their government contracts.”
Ryan said BNZ was committed to taking part in the initiative. “BNZ is committed to participating in this scheme and working alongside CHPs to help deliver more social housing where it’s needed most,” he said.
The loan guarantee programme forms part of a wider Government effort to increase the supply of social and affordable housing by supporting the community housing sector alongside Kāinga Ora.