MORTGAGE ACTIVITY

Hawke's Bay Herald-Tribune, Issue 6, 22 January 1937, Page 6

MORTGAGE ACTIVITY

-Press Association.)

Distinct Revival Throughout Dominion MINISTER'S C0MMENT

(By Telegraph-

WELLINGTON, Jan. 22. "There has been a distinct revival of mortgage aetivity throughout New Zealand in the past year or two," Baid the Minister of Justice, Hon. H. G. R. Mason, yesterday, "and this improvement is shown both in the amount of mortgage debt discharged and the registration of new mortgages." The Minister mentioned that the diacharges for the year ended March 31, 1935, amounted to £13,732,853, and tko total for last financial year was £17, 057,223. The issue of new mortgages in the same period of two years ago showed an increase. In ' the financial year ebding March 31, 1935, new mortgages aggregated £11,845,634, while the total for the succeeding year rose to £17,310,703. Some interesting figures showing the variations in the amount of mortgages discharged from year to year during the past decade were also mentioned by the Minister. During the period 1925 " to 1930 the lowest total " of mortgage principal discharged in one year was £23,988,840, for. the year ending March 31', 1928, while the highest amount was £33,958,144 in 1926. For the year ending March 31, 1931, however there was a sharp drop Jbo £20,056,691 in the sum of mortgages discharged. The fall was deeper the following year, when the total drqpped to £10,636,385, attd for the two subsequent years the total w«e even less"These variations,'' said Mr Mason, "indicate that the great majority of mortgagors were unable to refinance on convenient terms and were compelled t# rely on relief legislatioji foi their protection. "The amount of new mortgages tell# a similar tale," continued the Minister. "Between 1925 and 1930 the new mortgages registered eaeh year showed considerabie variation. The lcwest figure was £33,190,519 in 1928, and the highest total was £47,093,789 in. J926. • By 1932, however, the aggregate had dropped to £13,410,581. After a further drop the next year the total fell in 1934 to £7,802,853, thus further cdnfirming the deduction that mortgiigors have had to rely upon renewals or relief legislation, and have not refinunced their loan obligations.'' After noting . the recent revival oi mortgage aetivity, Mr Mason emphasi3ed that the figures he had citei showed beyond al? question that by far ihe great majority of mortgagors now existing have been protected by the relief legislation whiejh expires at the end of this' month. Thereupon, in. the case of all mortgages for' which the teim ha# expired the mortgage© will ha entitled to cali. up . the mortgage at tlnee . months' notice unless the mortgagor ? immediately takes steps to uring hira > self undei the new legislation. "The Government's poliey," addod tha Minister, . "is to have such adjustment oi mortgage liability made at once as will enable the country l.ere- • after „ to be free of restrictive Ugislation 'in relation to mortgages. Consequently every mortgagor desiring ' a continuance of protectioia must taka active steps te secure his position, and must make his own application. for pi otection prior to the end of this month. Instructxons are obtainable-at all post • offices, and forms of application from all clerks of court. Applican'ts are advised to consult their solicitors. Au especially moderate scale of fees has been arranged with the Law Society by the Government to enable these servioes to he within the reach of all mortgagors. If for any reason any mortgagor is unable to avail himself of such service then the clerk of an adjustment commission wlil assist the app3cant to fill in his form of apphcatiou for mortgage relief."