Thursday, May 04, 2006
You might be paying your nextdoor neighbour's mortgage
Nearly a quarter million NZers receive an accommodation supplement averaging $62. This is used to pay rent or a mortgage. I don't have current data for how many use it to pay a mortgage but through the nineties and early 2000's the figure was consistently around 40,000.
If these people can't afford their mortgage repayments shouldn't they reduce them and extend the payback period? Is it fair that the taxpayer tops-up their equity while struggling with his own mortgage?