A.M.P. SOCIETY.

Waikato Times, Volume 112, Issue 18705, 3 August 1932, Page 9

A.M.P. SOCIETY.

LOANS ON MORTOAQEB. RATE OF INTEREST REDUCED. Cable advice has been received from the head office of the Australian Mutual Provident Society, Sydney, by the manager for New Zealand (Mr C. M. Martin) that the maximum rate for loans on mortgage existing and new will be 5£ per cent, for two years from September 1. The principal board has given prolonged consideration to the question of reducing the rate of interest payable on country, city and suburban property mortgages to the society, recognising that a reduotion of interest will be a factor in reducing the costs of production and distribution essential In a period of low world prices. The board are practically trustees for tho holders of approximately one million life policies, the bulk being for moderate amounts. The funds of the soolety are mainly the- savings of tens of thousands of persons endeavouring by /abstinence and thrift to secure to their dependents protection against, adversity. A long view of the interests of all the society’s polioyholders justifies the board In taking action to assist the national recovery from the present depression. Accordingly the board has determined for a period of two years from September 1 next to acoept from existing and future mortgagors of country, city and suburban properties intorest at a maximum rate of 5& per cent, instead of tho rates now payable under their mortgages to the society. The reduction outlined Is, of course, contingent upon no farther legislative interference with existing mortgage contracts with the society. Legislation which increases the element of risk necessarily and simultaneously increases the rate of Interest required to cover that risk.