MELBOURNE FINANCE

Evening Post, Volume CXXX, Issue 84, 5 October 1940, Page 14

MELBOURNE FINANCE

DEMAND FOR LOANS

The Melbourne Chamber of Commerce reports that a well-sustained demand persists for business and building loans, a considerable proportion of which is being satisfied by the trading banks. The market for fixed mortgage loans is fairly quiet, but a moderate volume of new loans has been arranged against flats and maisonettes, the minimum interest rate for this class of business being 5 per cent. Adequate funds are available for loan against these classes of securities and against private dwellings, but it is reported that money is not easily obtained for investment in loans against broad-acres. Many investors have diverted funds to the war loans, and those who are prepared to lend on farm securities are looking for full margins in value. Rates are unaltered, some lenders being firm at 5 per cent., while others are prepared to shade a quarter for attractive business.

Inquiry for municipal and public body loans continues quiet, but a few small loans have been arranged at from 4 1-8 to 4£ per cent. Apparently the paucity of new offerings by the larger municipal borrowers is tending to keep rates at low levels, current quotations being 4 1-8- per cent, for Melbourne suburban councils, and from £3 15s to £3 17s 6d per cent, for the large semi-Governmental bodies whose issues are traded in on the Stock Exchange.