SUSPENSORY LOANS FOR HOUSE BUILDING ARE PROVING POPULAR

Wanganui Chronicle, 17 June 1950, Page 4

SUSPENSORY LOANS FOR HOUSE BUILDING ARE PROVING POPULAR

WELLINGTON, Last Night (PA).— A noticeable rise in house building loan applications has taken place since the Government announced the details of its housing policy four months ago, said the Minister in Charge of the State Advances Corporation, Mr. Marshall today. He expressed pleasure at the response to the Government's proposals to encourage home building by provid. ing free of interest suspensory loans, and extending the loan limit for ! building from £l5OO to £2OOO for both ' ex-servicemen and civilian applicants. I The Minister said that in the six- | monthly period up to June 1, applies. I tions for building loans totalled 1645, ■ compared with 1365 in the preceding six months. Applications were on a | rising scale, there being 536 in May alone. Until June 1 there had been 890 applications for suspensory loans, of which 820 were received with ap--1 plications for State Advances building ■ loans and 70 were from home-builders using other sources for the main loan. I "On the evidence of the applications it is apparent the Government’s housing policy is already having a beneficial effect in providing more privately owned homes," said the Minister. Referring to suspensory loans, Mi. Marshall said these were in effect conditional grants which became straightout grants after seven years of continued ownership and personal occupation. Suspensory loans were available for houses being built in town or country, he said. If built on farms the fact they were occupied by farm workers was sufficient to fulfil the conditions. Suspensory loans could be made to both ex-servicemen and civilians, and in general, were available to those who started building on, or after December 3 last, providing the cost of the completed house, as approved by the Corporation, was not greater than £2OOO, excluding the cost of the section. Suspensory loans on houses costing more than £2OOO were available in special cases should the dwellings be for larger families. The amount of a suspensor.v loan was 10 per cent, of the approved cost, with a maximum of £2OO . “The suspensory loan is a real inducement and benefit to those who might be deterred from building their own homes,’' said Mr. Marshall. "Already prospective homebuilders are realising its value and the Government is pleased at the response to this and other aspect of it progressive housing policy."