MORTGAGE RATES.

Waikato Times, Volume 118, Issue 19664, 26 August 1935, Page 8

MORTGAGE RATES.

REDUCTION IN STANDARD.

SIR A. RANSOM’S COMMENT. (By Telegraph.—Press Association.) • DANNEVIRKE, Monday. Sir Alfred Ransom, Minister of Lands, expressed entire approval of the terms offered by the Mortgage | Corporation. | "In my opinion," said the Minister, “the Mortgage Corporation Act will I tend towards rehabilitation to a great!er extent than any oilier legislation ' enacted during the depression. The . aim of the Government during that period has been to bridge the gap be- ; tween costs and prices and to maintain ; the soundness of the Dominion’s ! financial position. | “The 20 per cent reduction in iti- • ieresl provided by the National Ex- ' penditurc Adjustment Act was an important step in relieving the position ! of the mortgagor, but by Hie operation of the Mortgage Corporation the rate of interest will be reduced from a standard rate of 6 f per cent to 4| per cent for good securities. “The long term amortisation mortgage will in itself lie a distinct advantage to Hie mortgagor and Hie fact that a rate of about five per cent (it will not be higher). will cover interest, sinking fund and reserve contributions, represents a great advance in establishing a sound mortgage system. “\ point which may not he 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 (lie present value, which higher rate may ho. granted with the approval of the Minister of Finance. This must result in considerable benefit belli io the morlgagee and the mortgagor. In in v opinion Ihe Act has been well conceived ami will be welcomed by a lame body of Iho community both m town and'country.