BNZ Welcomes Government’s Loan Guarantee Scheme For Community Housing Providers

BNZ welcomes Government’s loan guarantee scheme for Community Housing Providers

BNZ today welcomed the Government’s announcement of a $900 million loan guarantee scheme designed to help registered Community Housing Providers (CHPs) access affordable finance to build more homes for New Zealanders in need.

The scheme will see the Crown guarantee 80% of eligible CHP lending, enabling participating banks to offer more competitive interest rates and lending terms to the sector.

With more than 19,000 applicants on the Housing Register waiting list, the initiative aims to accelerate the delivery of social housing by levelling the playing field between CHPs and state housing provider Kāinga Ora.

BNZ General Manager Property Finance Kieran Ryan said the bank was proud to support the growth of community housing in New Zealand and is pleased to participate in the scheme with $125m available to lend.

“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.

“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.

“BNZ is committed to participating in this scheme and working alongside CHPs to help deliver more social housing where it’s needed most,” says Ryan.

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