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Tuesday, 8 March 1966

Mr McIVOR (GELLIBRAND, VICTORIA) asked the Minister representing the Minister for Housing, upon notice -

1.   What is the maximum loan available through the War Service Homes Division?

2.   At what rate of interest is the money made available?

3.   What is the amount repayable monthly under such a loan?

4.   On what terms is money made available to the States under the Commonwealth and State Housing Agreement?

5.   On what terms is this money made available to individual borrowers in the States?

6.   What would be the amounts repayable monthly if £3,500 were made available to individual borrowers at interest rates of (a) 4 per cent., (b) 5 per cent., (c) 5i per cent., (d) 6 per cent., (e) 6i per cent, and (f) 7 per cent per annum?

Mr Bury - The answers to the honorable member's questions are as follows: -

1.   £3,500.

2.   3J per cent, per annum.

3.   £13 8s. 7d., where the term of the loan is for the normal maximum permissible period of 45 years. A maximum term of 50 years applies in the case of a widow, and the monthly repayment over such a term would be £12 18s. 6d.

4.   Under the Housing Agreement of 1956 as amended in 1961, the Commonwealth advances moneys to the States at an interest rate of 1 per cent, per annum less than the long-term bond rate at the time each advance is made. The current interest rate on advances is 4i per cent, per annum. The States are required to repay each advance to the Commonwealth over a period of 53 years by equal annual instalments of principal and interest.

5.   Dwellings erected by State housing authorities with moneys advanced under the 1956 and 1961 Housing Agreements are currently being offered for sale to eligible purchasers on the following terms, which have been decided by the respective States:


Each State, except Tasmania, is also a party to the 1945 Housing Agreement, and sells dwellings built under that Agreement on terms decided by the State. The sale terms are the same as those listed above for dwellings built under the 1956 and 1961 Housing Agreements except that in New

South Wales the interest rate per annum is i per cent, per annum lower, in Victoria the interest rate per annum is i per cent, lower under the Death Benefit Scheme and in Queensland the minimum deposit is 5 per cent, of the first £2,000 of the purchase price plus 10 per cent, of the balance of the purchase price.

Moneys lent by the States to building societies and other approved institutions under the Home Builders' Account provisions of the Housing Agreement are being made available by those bodies to individual borrowers on the following terms to finance the construction or purchase of privately built homes:


6.   The monthly instalments that would repay a loan of £3,500 together with interest at the interest rates stated are as follows: -


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