TEN-MILLION POUND SCHEME

Wanganui Chronicle, Volume 79, Issue 307, 29 December 1936, Page 7

TEN-MILLION POUND SCHEME

HOUSING REPAIR LN CANADA. <By Mail.) OTTAWA. Nov. 5. A ten-million-pound programme for the repair and modernisation of Canadian homes has been launched by the Dominion Government, in co-opera-tion with the Canadian banks. Homebuilding is not covered in this scheme —there is provision in the law already for Government assistance in that direction. The new plan provides means by which home-owners may borrow money from the banks, with a minimum of formality, for property rehabilitation, up to a maximum of £4OO, repayable in monthly payments over a year at a total cost to the borrower of 6.32 per cent. Money thus borrowed may be spent in repairs, in new heating plants, bathroom equipment, etc. The money is loaned directly by the banks, which are guaranteed by the Government against loss to the extent of 15 per cent, of the aggregate total of £lO,000,000. Municipalities are asked not to impose taxes on improvements made through such loans, and if any municipal government refuses to cooperate to this extent loans will not be made in its jurisdiction. The plan was formulated by tne National Commission on Employment and Relief, a government agency, and its general conditions are as follows: 1. Loans are to be made to owners of residential property (including farm houses) for repairs, alterations and additions including built-in equipment. 2. Loans shall not exceed £4OO in amount on any single property. More than one loan may be made on a single property if the aggregate amount does not exceed £4OO. 3. Loans are to be repaid in equal monthly instalments or in suitable instalments for such other periods as may be necessary to fit the conditions of the individual borrower. 4. The maximum charge for the loans shall be 31 per cent, discount for a one-year loan repayable in equal monthly instalments and proportionate rates for other periods. 5. No service or insurance charges or any additional charges of any kind may be made except certain stipulated penalties for arrears. 6. No endorsements or other security will be required.