SAVINGS BANK

Press, Volume CII, Issue 30121, 3 May 1963, Page 10

SAVINGS BANK

Money For Housing

With deposits of more than £ 1.75 m and about 6500 depositors, the Canterbury Savings Bank has been authorised to lend money on mortgage. Welcoming this announcement from Wellington, the president of the bank (Mr M. A. Connelly, M.P.) said just before he left for a trip to the United States th st the new order would allow the bank to play a greater p-art in the life of the community. Up to now the bank had to have 90 per cent, of its deposits invested in Government stock and hold 5 per cent, as a cash reserve. Leaving the balance for investment in local body loans. Now it could invest up to 50 per cent, outside Government stock, and would be able to lend on freehold housing and commercial properties. Both new homes and existing dwellings would qualify, Mr Connelly said. The board of trustees had decided to lend for housing purposes at 5j per cent., which was slightly below the open market rates for mortgage money, he said. There would be a slight increase on that rate for commercial and semi-commercial loans. The term of the investments would be three years, apd, providing the mortgagor and the property remained satisfactory, the mortgage would run on on demand. Principal and interest would be payable quarterly. Mortgagors would be required to Pay 4 per cent, of the principal a year, equivalent to a 25-year term.

Borrowers would have the option of repaying instalments in multiples of £5. Mr Connelly said. Interest would be reduced from the end of the quarter in which the reduction of principal was made.

As well as having money for housing, the bank would have more funds for Local aody investment, he said Deposits were increasing at the rate of £200,000 a month, so if that progress was maintJ‘,^cLlhere would be about L 100.000 a month available for local bodies and housing finance.

Sections Sold.—Eight secttons, which were passed in when 11 sections in the Glenburn subdivision in Grahams road. Fendalton, were offered at public auction recently have been sold privately. The sale was conducted by Livmgstone and Company in conjunction with Ford and Hadfield, Ltd.