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One step closer to leaky home resolution?

The government has taken a "giant step in the right direction" when it announced today it would increase the amount it is prepared to contribute towards repair costs for leaky home owners.

Monday, May 17th 2010, 5:11PM

by The Landlord

Building and Construction Minister Maurice Williamson announced that the government will pay 25% of repair costs, with local authorities also footing 25% of the bill, with the remaining 50% to come from property owners.

However, home owners will forgo their right to sue local authorities or the crown if they take up the government's offer, although will still have the option to pursue other liable parties such as builders, developers and manufacturers of defective products.

Williamson says the scale of the leaky homes issue is equivalent to a natural disaster of huge proportions and it is having a considerable impact on the wealth and health of many thousands of New Zealanders and their families.

"Affected home owners have been stuck in a complex and costly disputes process for too long with little prospect of being able to fix their leaky home," he says.

Although the government still firmly denies any legal responsibility, Williamson says "the magnitude of the issue means central government involvement is essential if we are going to find a way forward".

Home owners will be able to apply for a loan guarantee underwritten by the government  for their half of repair costs, provided they meet bank lending criteria.

North Shore mayor Andrew Williams says "the rescue package is a giant step in the right direction with the government finally accepting their fair share of responsibility for this man-made national disaster".

Affected property owners will need to make a claim under the Weathertight Homes Resolution Services Act to access the package once it is launched.

Williamson says the government is aiming to have the package up and running early next year, but in the meantime people can apply to the Department of Building and Housing to make a claim.

It is thought over 80,000 people live in affected houses, but only a minority - around 3,500 - have been repaired to date.

"If, as officials forecast, 70% of affected home owners within the 10-year liability limit take up this package, the government is anticipating its share will be around $1 billion over the next five years," Williamson says.

 

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance 8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 5.79 5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard 7.69 6.69 6.39 -
Heartland Bank - Online 6.99 5.49 5.39 5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora ▼7.39 ▼5.79 ▼5.59 ▼5.69
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 5.75 5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 6.39 6.39
TSB Special 7.39 5.69 5.59 5.59
Unity 7.64 5.79 5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 7.70 5.95 5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.79 5.69 5.69

Last updated: 12 December 2024 9:22am

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