feb 19, 1958 - 3% home loans - expanded

Description:

After the Second World War low-interest (3 per cent) housing loans were provided for ex-servicemen through the State Advances Corporation. Both they and civilians benefited from the suspensory loans introduced in 1951 and, later, from more liberal loan limits. Then followed two changes in policy which greatly increased Government lending in a short time. From February 1958 civilians on small incomes were granted 3 per cent loans at a time when the standard State Advances interest rate was 4¾ per cent and the prevailing rate charged by private institutions was 5½ per cent. These loans became much easier to obtain in April 1959, when it became possible for parents to capitalise the family benefit (up to £1,000) to assist in financing a house, making additions, or, in some cases, to reduce or pay off a mortgage.

Source: https://teara.govt.nz/en/1966/finance-public/page-9