MORTGAGE CORPORATION

Wanganui Chronicle, Volume 79, Issue 200, 27 August 1935, Page 7

MORTGAGE CORPORATION

THE TERMS APPROVED SIB A. RANSOM’S COMMENT [ P«r Pr«M AM«r«Uon J DANNEVIBKE, Aug. 26. Sir Alfred Ransom, Minister of Lands, expressed entire approval of tho terms offered by the Mortgage Corporation. “In my opinion,” said the Alinister, “the Mortgage Corporation Act will tend towards rehabilitation to a greater extent than any other legislation enacted during tho depression. The aim of the Government during that period has been to bridge the gap between costs and prices, and maintain tho soundness of the Dominion’s position. The 20 per cent, reduction in interest provided by tho National Expenditure Adjustment Act was an important step in relieving the position of the mortgagor, but by the operation of the Alortgage Corporation the rate of interest will be reduced from the standard rate of 6i p.c, to 4| p.c. for good securities. The long-term amortisation mortgage will in itself be a distinct advantage to mortgagors, and the fact that a rate of about 5 per cent, (it will uot be higher) will cover interest, sinking fund, and reserve contributions represents a great advance in establishing a sound mortgage system. “A point which may not be generally appreciated is that those holding private mortgages, representing on today’s values percentages higher than 66 2-3, may apply to the corporation for a loan up to 80 per cent, of the resent value, which higher rate may Be granted with the approval of the Minister of Finance. This must result in considerable benefit, both to the mortgagee and mortgagor. In my opinion tho Act has been well conceived and will be welcomed by a large body of the community both in town and country. ”