Housing Corp, cuts loan availability

Press, 2 November 1983, Page 2

Housing Corp, cuts loan availability

PA Wellington The Government yesterday cut off Housing Corporation lending to a wide range of applicants because the year’s funds were running out. People who will now not be able to borrow from the corporation for the rest of the year are: • Those trying to get funds to buy existing houses, except for ones which have not been previously occupied. • Single applicants, or households without children, either to build or buy a house. The Minister of Housing, Mr Friedlander, said that demand for corporation loan finance had been such that if present lending rates were continued, the corporation’s budgeted target would be met well before the end of the financial year. “The Government has therefore decided that Housing Corporation loan finance will only be available to those low-income earners with children who seek to build or buy a new first home.”

Mr Friedlander emphasised that loan applications already on hand would be processed, and that the new criteria did not apply to groups such as the armed forces and public servants on transfer. The corporation and the Government had considered a number of measures to restrict demand on the corporation’s $2OO million lending programme which to date this year had provided loans to build 2059 new homes and to buy 4920 existing homes. Tins has brought the total amount authorised so far to $165.3 million. The latest measure was adopted as “being the one which best serves the lowerincome family with children i and maintains employment! prospects in the building industry,” said Mr Friedlander. The effects of the “temporary” restraints would be carefully monitored and the situation would be reviewed next year, he said.