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Commissioner for housing loans scheme

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Issued by:—

The Department of the Capital Territory

The Commissioner for Housing confirmed today the criteria being

observed in the approval for housing loans. He said large numbers of

loans are being approved. In a 10 day period 74 have been approved

representing over 60% of the number of applications for that period.

The Commissioner said that the fundamental purpose of the

Commissioner for Housing loan was to provide the average man with first

mortgage money to' buy an average house.

Since early May when Mr' Enderby announced that "broad and liberal

needs criteria" were to be applied, well in excess of 1400 loan enquiries

and applications have been received, an increase of over five times the

rate of applications before May. Analysis indicated that many loans were

being sought for expensive houses well in excess of $30,000 purchase price.

The amount of money available for Commissioner for Housing loans was not

unlimited and it had to be distributed to the best advantage of the '

community. The money should go first to those who need it most.

Analysis of contracts indicated that contract prices of $1,300 per

square or less were obtainable, though many applicants appeared happy to

contract for a much higher squarage rate-, which could well include special

f eatures.

The criteria_being applied at present were that loans would not

generally be approved in cases where -(1) applicants were eligible for War Service (now Defence Services

Homes) loans;

(2) the proposed purchase price of the property (house and land)

exceeded $30,000; or

(3) assets holdings were substantial.

Other factors such as income, size of family and financial commitments were

taken into account in distributing the available loan resources.

The Commissioner for Housing analyses applications and approves these

as speedily as he can. He reserves the right under the terms of the Housing

Ordinance to assess each case on its merits.

Persons who seek to have their cases reviewed may apply to the

Commissioner who will arrange review by a committee of senior officers.

Any person who signs a contract which depends on a Commissioner for

Housing loan, not first having satisfied himself that the loan is available,

is acting unwisely.

The Commissioner for Housing said the criteria under which applications

were approved were continually under review.

Friday, 17 August 1973 ' " '