1 juill. 1990 - Home Equity Conversion Mortgage - starts

Description:

1990-1991
The Home Equity Conversion Mortgage Pilot Scheme was a one year pilot programme operated by the Housing Corporation. This was a reverse mortgage home equity conversion scheme with an indefinite term and variable interest rate. Loans were made in the form of a lump sum or regular advance with borrowings and interest recovered when the house is sold or an estate wound up. Known as “Helping Hand Loans” the pilot programme was established in Greater Auckland, Nelson and Levin. Loans were available for a housing-related need (e.g. home repairs, maintenance, alterations, improvements, rates and insurance). Applicants needed to be over 65 years and less than 90 years and their house substantially mortgage free. The minimum house value was $75,000. People, who qualified for assistance from the Corporation (in terms of their income) and could demonstrate an inability to borrow in a conventional way, were eligible for an income-related interest rate on their loan. The Housing Corporation budged for 150 loans to be issued during the pilot with a total capital value of $1 million ($200,000 for regular advance payments and $800,000 for lump-sum payments. The scheme was favoured by single or widowed older people on low incomes.
The pilot was due to run until June 1991, but was later extended to the end of September 1991. Interest in the pilot was low, but an evaluation report concluded that it had been successful by international standards. In 1991, changes in housing policy saw the end of the pilot.

Source: https://www.msd.govt.nz/about-msd-and-our-work/about-msd/history/social-assistance-chronology-programme-history.html

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