MORTGAGE FIGURES

Waikato Times, Volume 119, Issue 19883, 12 May 1936, Page 6

MORTGAGE FIGURES

The detailed returns of mortgages registered and discharged, prepared by the Statistics Oflice, will be carefully studied by those concerned when the history of the prolonged depression in the Dominion comes to be Written. Prior to 1932 the excess of. registrations over discharges was very large but since then a process of readjustment has been operating and the returns for the past two or three years afford some evidence of its extent. In many instances discharges have been caused by previous owners resuming occupation, and there are many factors that will be difficult to assess. The totals for the past two years show that discharges exceeded registrations by £2,030,500 and the effects of the depression can be gauged by the fact that Whereas in 1925-26 registrations exceeded $347,000,000 last year they were only £17,350,000. However, they were well above the record low level, touched in 1933-34 when registered mortgages totalled only £7,800,000. It is interesting to note that the movements have been more marked in the North than in the South Island. In the past two years the excess of discharges over registrations in this island have exceeded £3,100,000.» In the South Island there was an excess of discharges of £86,000 in 1934—35 but last year the trend was in the opposite direction and new mortgages exceeded discharges by about £1,200,000. It would be interesting to have that unexpected movement explained. Every North Island district reported heavier discharges than registrations, while in the South Island the trend was the other way.

The pending legislation with regard to mortgage adjustments will have a direct effect on the position that obtains to—day, and the monthly figures published by the Statistics Office may become of first importance. The problems to be solved are so many and so involved that many people Well qualified to express an opinion hold that the Government, in tackling the matter, is undertaking its most difficult task. The legislation, it has been stated, is to base adjustments on the guaranteed price for dairy produce, but as it is not intended to disclose that price until late in July, at the earliest, it is difficult to see how the adjustment plan can be devised. M’ortgages could not be adjusted on a hypothetical price, and Mr Savage may find that the need to provide a definite basis for these far—reaching transac< tions will compel the disclosure of the price that is to be paid during the first your. Then there will arise the question of basing mortgages on a price. that may fluctuate from time to time, and the need for protecting the interests of both parties, lender nnd borrower. It seems certain that the changes cannot be made until the price has been disclosed. That may compel the announcement of the price or, on the other hand, the postponement of the mortgage ud—justnients. 77