Further 10 loans in Christchurch

Press, 26 July 1986, Page 9

Further 10 loans in Christchurch

A further 10 loans will be made available im Christchurch under a Housing Corporation experimental lending scheme.

Forty-eight equity share loans were given to Christchurch people late last year.

Equity share is to help low-income to modest-in-come families who do not qualify for ordinary corporation loans to buy their own homes.

Under the scheme, the borrower pays a 10 per cent deposit and the loan advanced will be a single mortgage. Repayments will not exceed 25 per cent of the household’s gross weekly income. The corporation’s loans manager in Christchurch, Mr Bryan Atkins, said that the latest 10 loans were slightly different from those given last year in that'ithese were for existing houses. The 48 previous loans were for new houses only.

"Applicants this time can purchase an existihg house of their own choice anywhere in Canterbury with a maximum loan from the corporation of $45,000,” said Mr Atkins.

Interest on the loan was related to the inflation rate and was reviewable annually, he said.

“Interest on these 10 loans will be 13.1 per cent per annum which comprises an inflation rate of 10.1 per cent and the corporation interest charge -of 3 per cent” Applications for the loans will close on August 12. If more than 10 apply, a ballot will be held on August 1-5.