Cost of loans

Press, Volume CXI, Issue 32564, 25 March 1971, Page 3

Cost of loans

(N.Z. Press Association) WELLINGTON, March 24. If the limit on . State Advances loans for new houses were increased by $lOOO, an additional s7m would.be required annually, the Minister in Charge of the State Advances Corporation (Mr-Rae) said today. He based his figures on the present number of loans being financed. Mr Rae was speaking by landline from Wellington to Whangarei during the opening of a new State Advances Corporation building there.

Mr Rae said the loan limits were being reviewed. Builders’ organisations had asked for increases of about $2OOO, Mr Rae said. Referring to a hypothqti-

pal increase of glMOis Mr Rae said: f‘lf the increased amount led to an additional 1000 people being able to build, this would require a further sBm, and if the loans were increased still higher, the extra sum required could be between s2om and s3om. Despite large annual repayments from previous borrowers the corporation still had to obtain ssom or more’.' from national .development loans raised by the Government, Mr Rae said.

“While I am fully aware of the increased costs of housing this decision must wait until I know what my allocation of funds for 1971-72 is to be,” Mr Rae said.