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Thursday, 25 November 1965

Mr BURY (Wentworth) (Minister for Housing) . - by leave - I am now in a position to confirm that the Housing Loans Insurance Corporation will commence its business operations tomorrow in all States. Housing Loans Insurance Regulations that have been made today prescribe six classes pf insurable loans which embrace loans to enable a borrower to obtain a single unit of accommodation that he intends to occupy continuously as his home. An insurable loan may be made to acquire a home by buying land and building on it, by building a house on land already owned by the borrower, by buying a completed house or by buying a home unit or similar dwelling.

The Chairman of the Housing Loans Insurance Corporation will be making a statement later today to announce the maximum insurable amount, the maximum percentage of valuation and the maximum permissible period for repayment that will apply to each class of insurable loans. He will also announce the premium rate that will be charged by the Corporation. I wish to point out that the classes of insurable loans prescribed by the regulations made today cover all of the types of loans that are likely to be made to enable a person to obtain his own home. They represent, therefore, the kinds of loans that the Corporation was established primarily to insure.

I emphasise, however, that the insurance operations of the Corporation will not be confined to the classes of loans that have been prescribed today. I assure the House that steps are being taken to have the classes of insurable loans increased substantially within a few weeks. Some of the kinds of loans that we wish to see included in the scope of the Corporation's activities have presented drafting problems that may take a further week or two to solve. In the circumstances, we have chosen to allow the Corporation to open tomorrow with its present range of facilities rather than to postpone the opening until a comprehensive array of classes of insurable loans has been drafted.

Honorable members will be aware that the Housing Loans Insurance Act empowers the Minister for Housing to limit the operations of the Corporation to the prescribed classes of loans that he specifies. In view of the nature of the classes of loans that have been prescribed. I propose to permit the Corporation to insure loans in all of the six prescribed classes. I also wish to mention that the " Gazette " that was issued today to notify the making of the Housing Loans Insurance Regulations includes a list of the organisations that have been approved so far by the Corporation as lenders for the purposes of the Housing Loans Insurance Scheme.

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