Health Fund, Mortgages, FA & Christian KiwiSaver Scheme Webinar 2023 Q&A
Date of training: 8 May 2023
Is there any consideration given to clergy who need annual optometry checks and following prescription changes?
Yes, while the Health Fund will only provide $700 of funding over a two-year period, we will help clergy who need additional optometry care under our Financial Assistance category. This would be means tested.
What has happened for people who want to build on Maori-owned land?
We are discussing the option of lending over Maori-owned land with a Wellington law firm that has experience in this area. They would register the mortgage for Anglican Financial Care. We will update our mortgage lending information once we have worked through all the requirements needed to allow us to provide this type of lending.
Mortgage lending over Maori-owned is only over the house on the land, and the land is usually leased. If the loan were to default the house would be sold to settle the debt, not the Maori-owned land.
The lending covers either an existing house, the build of a new house or a relocated house.
Our lending for lease-hold properties both on regular and Maori-owned land is:
For the purchase of a property for which the land is under a perpetually renewable lease, AFC will lend up to:
- The lower of 70% of either the registered valuation or purchase price; or
- 60% of the lesser of the rating valuation or a property valuation website price or the purchase price if no current registered valuation is supplied.
Adding to the previous question…or wanting to purchase building only on Maori land block.
The building is the only thing that can be mortgaged. An application of this type would be considered.
Is there an upper limit to the financial assistance per applicant and for the whole fund per year?
Financial assistance can be by way of a grant or a loan. Grants have a max limit of $5,000 per claim. If a course of treatment is recommended then the entire course is one claim.
If more than $5,000 is required, it is generally provided by way of a loan with the terms set based on the borrower’s situation. However, in exceptional circumstances a grant could be considered.
There is no upper limit a person may claim per year, but if a loan is required, we must meet our responsibilities under the Responsible Lending Code.
We have a limited amount of funds available for Financial Assistance, so each application received is considered carefully.
The first quarter of the year CKS had a very good return in comparison to other schemes. Would you like to comment of that?
All investments have risk. We are happy the returns to 31 March were positive, but every investor should be aware there will be times where returns can be negative. It is important to remember KiwiSaver investments are considered long-term investments. Over the long-term investors should see gains over time.
