MORTGAGE MONEY.

Auckland Star, Volume LXIII, Issue 252, 24 October 1932, Page 4

MORTGAGE MONEY.

AUSTRALIAN RATES. Banks and other financial institutions which lend money on mortgage state emphatically that there is no general dissatisfaction in the country with existing mortgage rates, states the Melbourne " "Our managers in the country are hi daily contact with mortgagors, said the general manager of one ot the leading banks, "and the reports that reach us from time to time indicate widespread recognition by country customers of the difficulties of the times through which we are passing, and a feeling that the banks generally are acting quite fairly respecting the rates in force. Another banker said that there was no justification for the campaign that was being carried on in favour of breaking contracts. The movement appeared to him to be due entirely to political motives. If we are going to fly to Parliament every time we meet adverse circumstances for the right to break contractual obligations," he said, "confidence will be destroyed, and people with money to lend will certainly not let it out on mortgage. If Parliament is desirous of being generous with other people's money, it should first reduce taxation. This would enable lending institutions to reduce rates to borrowers." Other bankers expressed similar views. Mortgage rates are between 5% per cent, and 6 per cent. Institutions which are prepared to lend at 5% per cent state that there is little demand for money, arid they fear that it will be even smaller if the State Parliament adopts the suggestion of the Country party to apply the financial emergency legislation to new mortgages effected since the first Act of this nature came into operation last year. ,