Leaky home loans not automatic, banks warn

Radio New Zealand

10.03.2011

The Bankers' Association is warning owners of leaky homes that they will not necessarily be entitled to a loan to cover repairs if they sign up to the government package soon to be on offer. Under the package, the Government would pick up 25% of the cost - as would local authorities in cases where they signed off the work. The homeowner would be liable for the rest. When the package was announced, the Government said it would work with banks if people needed a loan to cover their half of the cost. But Bankers' Association chief executive Sarah Mehrtens told a parliamentary select committee that it is important for people to realise they will still have to meet usual credit criteria.