Govt Extends Mortgage Help Scheme
Sydney Morning Herald
Thursday January 7, 1993
The State Government has extended its mortgage assistance scheme for home buyers who are finding it hard to repay their home loans.
The Minister for Housing, Mr Webster, announced yesterday that the financial assistance packages would rise from $15,000 to $20,000.
The maximum period that the loans will be available would also increase from one to two years.
The scheme allows people having trouble repaying their mortgages to apply for an interest-free loan from the State Government to tide them over.
Mr Webster said the extensions would start this month and the offer would remain until the end of the year.
It would apply to existing recipients of mortgage assistance as well as any new approvals granted this year.
Mr Webster also confirmed the appointment of a financial consultant, Mr Ron Irish, to oversee the implementation of the recommendations contained in the McMurtrie Report into the HomeFund scheme.
Mr Irish, who assisted Mr McMurtrie in the review of HomeFund, will work with the ministry until the new authority recommended to take over the administration of the HomeFund scheme from the Department of Housing is established.
This is expected to be in place by the end of March.
Last night, the Minister for Consumer Affairs, Mrs Chikarovski, said that on its first day of operation, more than 260 borrowers had called the special HomeFund hotline.
Establishment of the hotline was also recommended in the McMurtrie Report in an effort to provide borrowers with quick, professional advice on how to refinance their loans.
Callers were provided with information from financial counsellors and sent a comprehensive kit outlining refinancing options.
Mrs Chikarovski said most calls on the first day had been from borrowers who wanted to switch from HomeFund loans to mortgages with banks and building societies.
"According to the financial counsellors, a small proportion of those borrowers who called the hotline today said they were facing serious difficulties in meeting their loan repayments and wanted general financial advice," she said.
© 1993 Sydney Morning Herald