State of the mortgage market: February, 1986

Press, 19 February 1986, Page 15

State of the mortgage market: February, 1986

1st Mortgage 2nd Mortgage ELIGIBITY CRITERIA TERMS AVAILABILITY OF FUNDS TRUSTEEBANK CANTERBURY 21.5 per cent 22.5 per cent Two-year savings history. Average balance of $5000. Non-depositers may be helped at a slightly higher interest rate. Generally 25 years. Can be structured to suit applicants circumstances. Funds available. Lending $8-9 million per month in Canterbury, Marlborough, and Nelson. HOUSING CORPORATION 9 per cent 17 per cent Income and family related. Funds are restricted to modest income earners; civil servants on transfer and members of the armed forces. 2nd mortgage mainly for refinacing or home improvements. Flexible: General guideline $32,000 to buy an existing home and $37,000 to build a new home. Up to 30 years. Expects to have enough for remainder of financial year at present level of demand. POST OFFICE SAVINGS BANK 16 per cent for up to 70 per cent of G.V. — above that 19 per cent. Only Post Office clients based on savings history. Maximum period: 25 years. No restriction on funds at present. UNITED BUILDING SOCIETY 22.5 per cent for society members 23.5 per cent for nonmembers 25 per cent for members 26 per cent for nonmembers Open to both members and non-members. Lending up to 70 per cent of G.V. Repayments no more than 30 per cent of gross income. Any length between 5 and 20 years to suit ability to repay. Discounted interest rates for shorter-term loans. No restriction on funds. Lending freely. NATIONAL BANK 18.5 per cent Very little 2nd mortgage lending. Rate varies between 20 and 20.5 per cent Good dependable customers with a good savings record. 15 years maximum loan: $35,000. Good availability of funds at present.