Minister Warns Agents On Finance For Houses

Press, Volume XCVIII, Issue 28983, 26 August 1959, Page 12

Minister Warns Agents On Finance For Houses

By Our Parliamentary Repotter)

WELLINGTON, August 25. Tlie practice adopted by some housing agents of advertising that finance to purchase or build a property would be provided by the State Advances Corporation was criticised bv the Minister of Housing (Mr Fox) today.

“Such agents have no authority whatsoever to state, or imply, that finance will be provided by the corporation,” he said. “The decision regarding the granting of a loan is made by the corporation only after a careful examination of the building proposition, and the needs and circumstances of the applicant. These advertisements could mislead intending home-owners, and the practice should be discontinued.

“First seek the advice of the State Advances Corporation, if you wish to determine whether a section is suitable for loan purposes,” Mr Fox advised intending purchasers.

Commenting on cases in which the corporation has had to refuse housing loans because the sections were not acceptable for loan purposes, Mr Fox said prospective home-builders could avoid this disappointment and possible financial embarrassment if they

sought the advice of the corporation before entering into a contract to purchase a section. “Upon payment of a valuation fee, the corporation will inspect a section and advise whether or not it is considered acceptable for the purpose of a building loan.” said Mr Fox.

“If this is done before a contract is drawn up, the prospective builder will be safeguarded, and his building plans assisted.”