Papakainga: Traditionally, the literal meaning of Papakainga housing is, ‘a nurturing place to return to’.

The increasing cost of living has resulted in some Maori moving out of urban areas and returning to their ancestral land and Papa Kainga has increasingly become and opportunity for homeownership on Maori Land.

Papakainga is a form of housing development which occurs on multiply-owned Maori or ancestral land.

There is a perception that European and Maori sometimes view land ownership differently. Many Europeans view land primarily in economic terms while many Maori place primary emphasis on spiritual, cultural and social values associated with the land

However, the fact that Maori land has multiple owners has raised barriers in terms of home loans.  Banks and other lenders are reluctant to lend on this type of land as it is virtually impossible to place a capital value on it. It effectively cannot be sold on the open market so banks are wary of their lack of security if owners default on mortgage payments. If the building itself is used as security, depreciation can often result in the loan exceeding the value of the house.

The new Kainga Whenua removes this barrier. Check out Kiwibank.