DEARER MONEY.

Timaru Herald, Volume CXXIII, 15 December 1925, Page 10

DEARER MONEY.

STATE ADVANCES OFFICE. INCREASED RATES OF INTEREST. By Te'eniapli -Press Association. WELLINGTON, December 13. The rate of interest on loans obtained through the State Advances Office has been increased from Ist December. Up to the present money has been available at 4J- per cent, interest, plus $ per cent, for sinking fund. Loans for building purposes will now bo available at b.i per cent., reducible to oil I| cr cent, net on prompt payment of interest, plus 1 per cent, for sinking fund, or 2 per cent, if, tire mortgage is for a shorter term than the ordinary 36j years. If a person desires to borrow money for repayment of an old mortgage, he will now be required to pay 6$ per cent., reducible to 6 per cent, on prompt payment of interest, plus 1 per cent, for sinking fund if the loan is for 36$ years. Jf the loan be for a shorter period, the State Advances Board has power to fix tho sinking fund charge at 2 per cent. Loans for repayment of old mortgages up to the present have been available at about 5$ per cent., But under the increase which has now been effected persons borrowing money through the State Advances Office to repay an old mortgage may have to pay as much as 3 per cent, for accommodation. Several times before and during last session of Parliament Ministerial indication was given that there was a likelihood of tho rate being increased at an early date, but up to the. present no official pronouncement had been mado. i