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?

2 comments:

Oswald Bastable said...

When I was struggling with the mortgage (having been smashed up badly in a car wreck, I sold up and brought a cheaper house.

Silly me...

Dave said...

No Lindsay, they shouldnt do that, particularly if their mortgage payments are less than their rent would have been had they been renting ( as in our case.)

And furthermore they dont use it to pay a mortgage - some onluy lget about $20-40 which is not much.
The other option is to increase family support even further, but that will discrimiate against the childless.