Suspensory Loans for Red Zone Home Owners

New Zealand First has called on the Government to make suspensory low interest loans available to red zone homeowners in Christchurch who have had to leave their homes but cannot afford to buy another home with the proceeds of their Government pay out.

The situation has been highlighted by the case of 80 year old Janet Cramer in the Christchurch Press today.

Earthquake Recovery Spokesperson Denis O’Rourke said applicants for the loan would need to show that bank finance was not available to them to purchase a similar property to their red-zoned house.

“A suspensory loan would be secured against the new property and would not be repayable until death or resale.

“It would accrue interest at a concessionary rate, making it possible for elderly people who cannot get a mortgage, or afford to service one, to have a home on their own and thus avoid Canterbury’s extraordinarily high rents.

“These are people being forced to move purely because of the Government’s zoning decisions. Many are in the position of having paid off, or nearly paid off the mortgage of their red-zoned homes and now have insufficient funds to replace their homes, many of which are not badly damaged and are still habitable.

“If they are unable to find bank finance to enable them to buy a new home, the least the Government could do is to provide a suspensory loan of up to $200,000 to help them into a new home,” says Mr O’Rourke.

ENDS

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