HOME BUILDING.

Auckland Star, Volume LXVII, Issue 292, 10 December 1936, Page 9

HOME BUILDING.

CANADIAN SCHEME.

OUTLAY OF £10,000,000. BANKS HELP GOVERNMENT. OTTAWA (Canada). A £10.000.000 programme for the repair and modernisation of Canadian homes has been launched by the Dominion Government, in co-operation with the Canadian banks. Home-building is not covered in this scheme—there is provision in the law already for Government assistance in that direction. The new plan provides means by which home-owners may borrow money from the banks, with a minimum of formality, for property rehabilitation, up to a maximum of £400, repayable in monthly payments over a year at a total cost to the borrower of 6.32 per cent. Money thus borrowed may be spent in repairs, in new heating plants, bathroom equipment, etc. The money is lo<yied directly by the banks, which are guaranteed by the Government against loss to the extent of 15 per cent of the aggregate total of £10,000,000. Municipalities are a<»kcd not to impose' taxes on improvements made .through such loans, and if any municipal government refuses to co-co-operate to this extent loans "ill not be tnade in its jurisdiction. The plan was formulated by the National Commission on Employment and Kelief. a Government agency, and its general conditions are as follow: (1) Loans are to be made to owners of residential property (including farmhouses) for repairs, alterations and additions, including built-in equipment. (2) Loans shall not exceed £400 in amount on any single property. More tlift 11 one loan may bo made on a single property if the aggregate amount does not exceed £400.

(3) Loans are to be repaid in equal monthly instalments or in suitable instalments for such other periods as may be necessary to fit the conditions of the individual borrower. (4) The maximum charge for the loans shall be 3J per cent discount for a oneyear loan repayable in equal monthly instalments and proportionate rates for other periods. (5) No service or insurance charges or any additional charges of any kind may be made except certain stipulated penalties for arrears.

(0) No endorsement or other security will be required.