FINANCE FOR HOUSING.

Auckland Star, Volume LXVIII, Issue 271, 15 November 1937, Page 4

FINANCE FOR HOUSING.

NEW SOUTH WALES PLANS,

It is expected that millions of pounds will become available for home buyers when the Xew South Wales Government alters its housing scheme this month. A bill has been prepared which will allow insurance companies and friendly societies to take part in the scheme. Hitherto only the banks have been able to make the advances which the Government guarantees.

It is understood that several Targe insurance companies are anxious to lend to the co-operative building societies. Between them they will be able to provide several millions of pounds to finance home purchasers. One company, which has advised the building societies that it is prepared to lend, has already approved several large loans subject to the enactment of the amending legislation.

The friendly societies also are expected to welcome the opportunity. It has been estimated that they have between them about £500.000 available for almost immediate investment, and that their yearly contribution to the scheme, from new money alone, could be about £200,000. Normally they lend about 70 per cent of their available funds on mortgage. The Commonwealth Bank and two trading banks have provided the finance so far. In about nine months the banks have agreed to provide advances for 68, societies, amounting to about £4,000,000J