Chch home mortgage pilot to be extended

Press, 6 October 1989, Page 6

Chch home mortgage pilot to be extended

PA Wellington A scheme offering modest-income customers the chance of a first mortgage from a bank or building society and a second mortgage from the Housing Corporation will be extended throughout New Zealand. The scheme has been successfully piloted in Christchurch. The decision to extend the pilot was announced yesterday by the directorgeneral of the Housing Corporation, Mr Robert Carter.

Mr Carter said 104 homebuyers had directly

benefited from the Christchurch pilot so far and other applicants, who did not qualify for corporation assistance, had been referred to a building society.

“If the scheme is extended throughout New Zealand we should, between us, be able to help hundreds more customers. Through this and other joint ventures I would expect some $3O million of extra assistance to be available to modest income clients in the coming year,” he said.

Mr Carter said the corporation was placing increased emphasis on joint

ventures with the private sector.

The corporation screens clients and another lender provides a first mortgage, which is limited to a maximum of 60 per cent of the property’s value. The corporation supplements the loan with a second mortgage at an interest rate the applicant can afford. The Christchurch scheme used the United Building Society. A similar arrangement in Hamilton used the Bank of New Zealand, and discussions were being held with Postbank in Auckland, Mr Carter said.