Page 2899 - Week 09 - Thursday, 26 August 1993
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Under the HomeBuyer Plus program, mortgagors are assisted at the time they apply for and receive a home loan and during the period of their loan.
Mortgagors require only a 5 per cent deposit without the added cost of mortgage insurance and pay an establishment fee of $260 (this fee was $250 in 1992-93). This is a saving on the costs and requirements set down by financial institutions.
During the period of the loan, mortgagors are benefited by having their loan payments income geared. This is currently 27 per cent. The difference between the loan payment and the standard loan instalment is provided as deferred assistance and is repaid when the income or financial circumstance of the mortgagor improves.
The deferred assistance attracts an interest charge equal to the CPI which maintains these funds in real value terms. However, unlike the financial institutions, the deferred assistance is not capitalised at the full home loan interest rate. Therefore, HomeBuyer Plus mortgagors are benefited by having a lower interest rate on the deferred assistance.
(7) There are no surplus funds against the HomeBuyer and HomeBuyer Plus programs. However, funds remaining unspent in the ACT Home Purchase Assistance Trust Account (HPA) and the ACT Home Loan Trust Account (HLT) are invested by the ACT Treasury through the ACT Borrowing and Investment Trust Account on behalf of the Commissioner for Housing.
As these funds are invested daily and are included with other Territory investments, specific details of the sources are not readily available for the I-IPA and HLT. The investment earnings for 1992-93 were:
(a) HPA - $385,610; and
(b)HLT - $58,026
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