Mortgage deal for State staff

Press, 11 May 1989, Page 2

Mortgage deal for State staff

PA Wellington State servants on transfer can now get a mortgage of up to 75 per cent of the mortgage valuation of their property with an interest rate pegged at 2.5 per cent below market rates. The new subsidised mortgage arrangements have been negotiated between the Public Service Association, other unions, and the State Services Commission. State servants who need to move and buy houses in other areas can now get a mortgage of up to $70,000 at 13 per cent. Up to 80,000 people may be eligible for the cheap loans. Alternatively, employers will be able to make cash grants instead of loans.

The . scheme adds $lO,OOO to mortgage money available to people on transfer, promotion, or who have to move “in the public interest,” P.S.A. president Sue Piper says. The scheme applies to the Public Service, health and education sectors, armed services, the police and “one or two” other State sectors. Staff can now get their money from the Housing Corporation or any other main lending institution offering more competitive interest rates. The interest rates will be reviewed if the market rates fall below 12.5 per cent or rise above 17.5 per cent. Some employers can also provide their own sources of mortgage money.