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New housing policy of Liberal Party - Sir William Spooner



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Radio Broadcast on A 3B. C. Network'by Senator the Hon. sir William Spooner, K. C.M.’ G, , M.M. on 22» 11» 63o

FOR PRESS 1118&

I am going to outline in simple terms the new housing policy of the Liberal County Party Government»

There are two proposals» .

Under the first proposal we will subsidise the amount which young people save in order to buy their first home.

Under the second proposal we will create an Insurance Corporation whieh will insure the repayment of monies which financial institutions lend on mortgage on homes» This insurance will make it safer for financial institutions to make larger loans at reasonable interest rates and thus reduce the need for second mortgages.

Let me give a brief outline of the subsidy proposal -1. It applies to people below the age of 35. Male or female,, Single or married. They can save together in a joint account or save separately,

2. The savings need to have been accumulated over a minimum period of three years. They can take a longer time than three years if they so desire. They can obtain the subsidy upon savings they have already made to purchase their home

or they can open an account and commence saving now. ,

3. The subsidy or gift will become payable when the young couple buy or build their first home either after they are married or when they are going to be marred*

4. The home is not to cost more than £7,00ti„ It is not to be

a home financed under an existing governmental housing scheme. It may be a new home or an old home. The home may

be located in the city or the country»

5. The subsidy or gift will be one-third of the amount saved with a limit of £250 for the one home. So £750 saved . attracts the maximum gift of £250. £300 saved would attract a subsidy of £100»

The Government Insurance Corporation will insure the repayment of mortgages amounting to as much as 3 5 % of the value home where the circuumstances so justify. It will also take into account the income of the borrower, so that it should be practicable for people to borrow an amount equal to three times

their annual income.

The subsidy scheme is available once only to males or females under the age of 35» The Insurance Scheme may be used more than once by all age groups including those who may have qualified under the subsidy scheme.

So that summing up* Under the subsidy or gift proposal young people will be helped to make a larger down payment on their first home„ They will then be assisted to obtain an adequate loan on mortgage under the Insurance arrangements. The same insurance arrangements will also help those.not

eligible for subsidy to finance or re-finance their home purchase arrangements and thus avoid second mortages at high interest rates.

CANBERRA

November 23. 1963