REHABILITATION

Grey River Argus, 16 May 1945, Page 5

REHABILITATION

HOUSING LOANS P.A. ' WELLINGTON, May 15 . Pending further investigation, it has been decided by the Rehabilitation Board to maintain the present loan limit of £1,500 in advances to ex-servicemen to purchase existing houses for the building of new homes. This decision has been made after consideration of a report by the Board’s Loan Committee and in view of suggestions that have been made from time to time that an increase in the limit amount be made. As an alternative to increasing the amount of finance thant can be advanced, the board is making investigations. into the general question of . building materials and designs costs in an endeavour to provide houses suitable for ex-servicemen at a figure tnat will come within the present loan limits. The board considered that this is at present possible in many parts of New Zealand. After . con-, sidering the position the board’s loans committee expressed the opinion tnat the present loan limit would enable the great majority of applicants to build a home to meet their needs. The difficulty to-day was not so much one of finance but of labour* anl materials, and it was felt tnat any increase in the loan limit would tend to have the effect of raising costs even above the present high levels. It was further considered by the board that even with the new low interest rates any additional commitments that would follow an. increase in the loan limit would be too heavy for. the average family, man to maintain. At present an ex-serviceman’s annual repayment rate on a loan ot £1,500 on a thirty years’ table mortgage was more than £76. To this must be added approximately £26 a year in rates, insurance, and maintenance, making a total charge ot just under £2 a week. This is regarded as a high proportion of the wages of those in the lower income groups. For ex-servicemen who do not see their' way clear to keep up such payments, the board thought that the State housing scheme provided the solution, and as more State houses and flats became available to ex-servicemen and women under the fifty per cent, allocation system the more quickly would this solution be reached. The board also' decided not to change its policy regarding supplementary loans. These cover the difference, between normal lending values and present day values and are granted provided the total sum does not exceed £1.500.