24 May 2001

Rural home ownership made affordable

Up to $20 million annually will be made available for home loans in rural areas, Associate Minister of Housing Tariana Turia announced today.

New funding of $2.5 million in 2001-02, rising to $17 million in the following three years, will be added to existing Housing Corporation capital loan funding.

"About 250 loans will be available each year for households wishing to build or buy in selected rural areas, including building on multiply-owned land", said Mrs Turia.

"Normal interest rates will apply but 3 per cent deposits will be possible. Assistance is also available for people who wish to build their own homes as part of a group self-build project.

"Particular attention will be given to helping build and renovate houses for families who are moving back to their homes of origin.

"This scheme is an extension of the successful low deposit rural loans scheme previously available in Northland and Bay of Plenty/East Cape, which assisted many families into healthy homes. Over the next six months the scheme will be extended to six other regions, including Waikato, and the Central North Island, as local housing service providers are appointed.

"All loan applicants must attend a series of home ownership information and support workshops. Local service providers will help applicants apply for the loan, negotiate their purchase, and go through the planning process for building or renovating their home.

"Adequate housing is critical to the health and wellbeing of families. The Government is committed to making home ownership for rural families achievable, and we will ensure they are informed and supported through the entire process. The benefits of healthy homes cannot be underestimated", Mrs Turia said.

ENDS

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