MORTGAGE INTEREST

Southland Times, Issue 24547, 23 September 1941, Page 3

MORTGAGE INTEREST

REDUCTION ADVOCATED

A suggestion that a reduction in mortgage interest should be made at the present time was advanced by Mr A. McMillan at the annual meeting of the Otago branch of the Real Estate Institute of New Zealand. His views were supported by Mr P. W. Stabb, and both speakers criticized the State housing scheme and the Government s action in charging itself only 2.9 per cent, interest while lending money to the public at 4| per cent. “There is room for a reduction in mortgage interest,” Mr McMillan said. “No Government bonds or industrial shares show as much as 4 per cent, interest, and the Government should give a lead in reducing interest. In the State housing scheme the Government charges itself 2.9 per cent., but lends money to the public for housing purposes as from 4| per cent upwards. The interest rates today,” he said “are from 4| to 5 per cent.” “The shortage of houses in Dunedin has never been so acute as it is now,” Mr McMillan continued. “Building costs are the highest they , have ever been and the result is that little private building is being done. The Fair Rents Act has also been a deterrent against building. There has been a definite influx of people to the town from the country,” he said, “and this has also affected the position.” Mr Stabb supported Mr McMillan’s suggestion that mortgage interest should be reduced at the present time and contended that private enterprise should be given encouragement.