Equity sharing Scheme to help women

Press, 15 July 1987, Page 17

Equity sharing Scheme to help women

Under the equity sharing scheme, the borrower pays a 10 per cent deposit and the loan advanced is a single mortgage. Repayments do not exceed 25 per cent of the household’s gross weekly income. The interest rate is the inflation rate of the time, plus 3 per cent. Bryan Atkins, the lending manager for the cor-

poration in Christchurch, explains the scheme further: “The difference between the payments met and the payments due is capitalised each year and added to the debt.” Until recently the scheme has been limited to new existing houses but when the next equity sharing loans are offered, people will have

the choice of whether to buy a new existing house, an old existing house or contract to build, he says. “I believe the scheme is appropriate to women because the outgoings are limited to a percentage of income. As the income situation improves then they can afford to pay more. “Many women go back

into the workforce when their children grow up, and they can then start repaying the debt that may have been capitalised. “People with a limited income and a limited deposit have the opportunity to own property and to share in the capital appreciation knowing that their deposit is not being eroded.” .