HOUSING LOANS

Evening Post, Volume CXXV, Issue 127, 1 June 1938, Page 5

HOUSING LOANS

EXTENT OF ADVANCES

GOVERNMENT'S POLICY

The wish expressed by Mr. H. Atmore, M.P., in his broadcast address at Nelson on Monday night that he would like to see loans available up to 95 per cent, of cost for workers' homes was the subject of comment last night by the Minister, of Finance (the Hon. W. Nash).

"It would seem that Mr. H. Atmore has not up-to-date information regarding the State Advances Corporation's policy in granting loans for house building," said Mr. Nash. It would be inferred from Mr. Atmore's remarks, said the Minister, that- the present policy was less favourable than that in operation during the time that the previous Governments were in office. That was contrary to fact.

"Today, any genuine applicant requiring a loan to assist with the building of a home can obtain his requirements from the State Advances Corporation, provided he can show that he is creditworthy, and his proposals regarding the location and type of house conform to the required standards," said Mr. Nash. "It will, of course, be necessary for him to satisfy the Corporation that the proposed residence is in keeping with his income resources and that, after providing for the maintenance of himself and family, he will be able to meet regularly the instalments, rates, insurance, maintenance, and outgoings on the building. "Borrowers are required to make available towards the cost of the home any cash or other assets which they have available, but subject to this reservation and a limitation of £1250, there is no restriction on the percentage of the valuation of the proposed home that may be advanced by the Corporation. "It is felt that in the urban areas where the Government has embarked on a programme.of building houses for rental the people with small capital resources will thus be provided for, and it is not expected that the higher percentage loans (that is'where there is only a small cash deposit) will be so readily granted where this alternative is offered.

"Briefly summarised, the present policy for the improvement of the housing position is:— "(a) To provide rental houses in the urban and suburban areas for those with limited resources or who, for other reasons, do not desire to own their own homes.

"(b) To grant special loans for the •rection of homes on liberal margins (95 per cent, or more if necessary) to those whose income and stability of employment make them eligible for such loans."