8.—13 a.

A perusal of these figures discloses several interesting facts. The number and value of applications dealt with during the year ended 31st March, 1937, is greater than for the succeeding year. This is attributed, firstly, to the fact that the prior period followed closely on the establishment of the Corporation and the announcement of the new terms of lending, and, secondly, the pending removal of the moratorium on mortgages which had been in operation for a number of years. To give effect to Government policy of encouraging the erection of houses the terms of lending for home-building were further enlarged during the past year, and the Minister of Finance gave written directions in regard to these special homebuilding loans, which may be summarized as follows : — (a) The previous restriction in regard to persons receiving income in excess of £6 per week is removed. (b) The maximum loan is increased from £1,000 to £1,250, with special provision for an increase beyond that figure in cases of large families. (c) Provided the applicant could make a reasonable cash contribution towards the cost of a section and dwelling and the proposal was otherwise acceptable, there should be no limit on the percentage to be advanced. (d) Where little or no cash could be provided by the applicant, he should first be considered for a tenancy of a State rental house if such would be available within a reasonable period. (e) Advances on special loan are to be subject to the Corporation being satisfied on the following points— (1) Character and creditworthiness of the applicant, and his present resources. (2) Suitability and value of the section. (3) Suitability and value of the proposed house and improvements. (4) The ability of the applicant, after providing for maintenance for himself and dependants, to meet regularly the instalments,rates, insurance premiums, maintenance, and other outgoings. (f) Ownership of an existing dwelling will disqualify an applicant for a special loan. (g) Transfer of a property subject to a special loan must be subject to consent of the Corporation, and profit on sale would not be permitted. (h) In appropriate cases the instalments to be collected from the mortgagor should cover all outgoings on the property, such as rates, insurance, and maintenance, and should be collected at short intervals in keeping with the circumstances of the borrower. An arrangement should be made for a deduction of the instalments from wages where this is practicable. An explanatory pamphlet issued by the Corporation relative to these loans is available for the assistance of intending borrowers, and copies are obtainable from the Corporation's offices or Post Offices. As a further measure of assistance to borrowers in this class, a new Plan Scheme has been introduced, and it is now possible for applicants to obtain from the Corporation a comprehensive service in regard to plans and specifications. Plans prepared by leading architects have been assembled in book form, and applicants have a wide choice of designs suitable for use in different localities. Assistance is also given in calling for tenders, and the erection of the houses is supervised by the Corporation's expert officers. Many applicants have already availed themselves of this scheme, and it is felt by the Board that, apart from help given to applicants in handling the difficult problems arising in the erection of houses, of which the average citizen has little knowledge, a higher standard will result both in regard to design and construction. It is not always realized by applicants the importance of locality when planning an investment in a house property. Another factor which cannot be ignored is the increased cost of construction arising from the general activity in the building and allied trades. These and other factors create gaps between values and costs, the successful bridging of which means the difference between a good and a bad investment for both the mortgagor and the mortgagee.

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