SECOND HOUSING LOANS

Press, Volume LXXXIX, Issue 27191, 7 November 1953, Page 3

SECOND HOUSING LOANS

REHABILITATION BOARD’S POLICY

A change in the policy of the Rehabilitation Boards towards former servicemen seeking second or subsequent housing loans was announced today by the Minister of Rehabilitation (Mr T. L. Mcdonald). The Minister said that, in the past, one of the conditions which had to be met by a former serviceman seeking a second housing loan was that the house or property which was the subject of the first loan had to be sold to an eligible and approved former serviceman, provided, of course, it was still suitable for rehabilitation purposes. This policy was originally adopted in order to divert as many houses as possible to former servicemen.

However, in view of the progress which had been made in providing houses for eligible men the Rehabilitation Board would, as from November 1, 1953, dispense with the condition that the first house be sold to an eligible former serviceman provided the man was,leaving his present district and required a home elsewhere. The board considered that former servicemen had had ample opportunity during the time that had elapsed since the rehabilitation housing scheme was instituted to effect any housing changes necessary in the city or town in which they were living. It had consequently decided that, in general, a second rehabilitation loan would not be made where the second property was in the same metropolitan area or town.

“The new policy will operate only in respect of dwellings where a valid contract of sale of the first house was entered into on or after November 1. 1953. In general the maximum amount which will be made available as a second rehabilitation loan will be the amount owing as a rehabilitation loan on the original property,” said the Minister.

The other conditions at present applying to second or subsequent rehabilitation housing loans are not affected by the change in policy. The Minister pointed out that all inquiries on this, and other rehabilitation loan matters, should now be directed to the appropriate branch office of the State Advances Corporation.