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Home finance changes in ACT

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Statement by the Minister for the Interior, Mr, Freeth.

The Minister for the Interior, Mr. Freeth, announced

today that the interest rate on loans by the Department of the

Interior for home building and on Commonwealth loans to co-operative

building societies in the A.C.T. had been reduced by to 4f- i ° ·

He said that a change had also been made in the conditions'

under which Commonwealth tenants in the A.C.T. may purchase the

houses they live in. Previously these could be purchased on an

initial deposit of 10 % of the purchase price, the amount remaining

φη mortgage bearing interest at the rate of 4-i- a year.

. Mr. Freeth said that Commonwealth tenants may now

purchase their houses on an initial minimum deposit of 51 ° Of the

purchase price, but the interest rate will now be 4 a year. This

rate is the same as for building loans from the Department and for

Commonwealth loans to A.C.T. building societies. It is also the

rate which at present applies to Commonwealth Savings Bank loans

for home building or purchase.

; He explained that when a Commonwealth tenant wishes to

buy his house, the Department fixes a price and offers the house to

the tenant at that price, f-he offer then remains open for 28 days.

There are a number of cases in which offers have been

made on the old basis and in respect of which the 28 days period

has not yet expired. The Department will honor those offers if

the tenants so desire. Alternatively these tenants may take

advantage of the new terms.

Mr. Freeth said there were also a number of tenants

who had made application to the Department for a valuation;o f '

their houses with a view to purchase, but which 'had not yet been

finalised. In all these current cases the tenant will be given the

option of purchasing on the old terms of 10 i ° minimum deposit with

the balance bearing interest at 4 - g a year, or accepting the new

terms of 5 i a minimum deposit with an interest rate of 4f$ a year.

CANBERRA: September 13, 1963.