MORTGAGE RATES

Evening Post, Volume CXXXVI, Issue 31, 5 August 1943, Page 6

MORTGAGE RATES

NO MAXIMUM FIXED

"Maximum rates of interest could be fixed, for mortgages, but such a wide variety of circumstances is involved in mortgages that there would be a danger of handicapping some borrowers by making lenders reluctant to make this type of investment except on the best of securities," said the Minister of Finance (Mr. Nash) in the House of Representatives yesterday in reply to a question. "Nevertheless, the Government would not hesitate to take action if any general need for it was apparent, but such is not the case at present," he said. "In keeping with the lower ruling rates on % Government and local body securities the trend of mortgage rates is downwards, and no difficulty should be experienced in arranging refinance of a first with a reasonable margin of security at 4£ per cent, or better, according to the amount - involved, the nature of the security offered, and the general circumstances of the case. Furthermore, under the Mortgages Extension Emergency Regulations, 1940, mortgages cannot be called up for payment of principal demanded except with leave of the Court, nor can actions be commenced for interest in excess of any reduced rate provided for in the mortgage." The question was asked by, Mr. J. A. Lee (Democratic Labour, Grey Lynn), who wanted to know whether stabilisation could be made to apply to interest rates. He said he had been informed of a 5 per cent, mortgage being'renewed at 5£ per cent.