HomeFund
From Wikipedia, the free encyclopedia
HomeFund was a scheme set up by the New South Wales state government & operated through co-operative housing societies [1] that allowed people who would not otherwise be able to afford a home to take out loans that would allow them to purchase a home. The scheme was especially targeted at public housing tenants.[2]
The scheme was originally set up by the Australian Labor Party government of Neville Wran in the mid 1980s. Problems started to emerge when the then-new Coalition government of Nick Greiner raised public housing rents [3] & started to market more aggressively toward public housing tenants, with some people receiving 30-year loans being into their 70s & 80s [4]. Interest rates for the scheme rose to around 15.9%, which was somewhat consistent with what other home loan lenders were charging at the time but out of reach of most HomeFund borrowers, [5] with in many cases repayments not even covering interest [6].
As a result of this, the scheme was restructured in 1993 with the appointment of a HomeFund commissioner to deal with complaints [7] & a program to either move loans to commercial lenders or cap interest rates [8].
[edit] References
- ^ Australian Trade Practices News 472 1999
- ^ HomeFund Mortgage Relief Bill - 04/03/1993 - 1R 2R - NSW Parliament Hansard
- ^ ABC Radio National - The Law Report - Tuesday April 27, 1999
- ^ Homefund Borrowers - 15/10/1992 - PRIV - NSW Parliament
- ^ HomeFund - 01/04/1998 - QWN - NSW Parliament
- ^ ABC Radio National - The Law Report - Tuesday April 27, 1999
- ^ HOMEFUND COMMISSIONER ACT 1993
- ^ HOMEFUND RESTRUCTURING ACT 1993 - SCHEDULE 1
