Rush For Cheap Actu Home Loans
The Sun Herald
Saturday July 9, 1994
THE ACTU-National Mutual cheap home loan plan has been swamped with inquiries from potential borrowers, prompting the life office to double the number of hotline telephone operators to 40 during the week.
The trust, which opened to the public last Monday, will give more than three million Australians access to housing loans at 7.6 per cent as against the 8.75pc offered by major banks.
However, only members of funds which invest more than $1 million in the trust will be eligible for the cheap loans.
"The phones have simply been running non-stop all week," said National Mutual project manager Anthony Wamsteker.
Mr Wamsteker said approximately two-thirds of the calls were from new home buyers and the remainder were from people who were eager to refinance existing loans. He said that half of the total inquiries were from people whose superannuation funds had not invested in the scheme.
Six giant superannuation funds have already pledged support, with several other super and corporate funds waiting in the wings.
"These funds are still going over the details but it looks promising and it means even more people will have access to the scheme," Mr Wamsteker said.
"However, the real test will be when the funds mail out the home loan information to their members. That is when we will get really inundated."
The trust will be funded initially by a $150 million bond issue to company superannuation funds and the remaining funds raised on wholesale money markets.
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© 1994 The Sun Herald