Winnipeg Free Press

Winnipeg Free Press (Newspaper) - October 26, 1981, Winnipeg, Manitoba 8 Winnipeg free october 1981 housing is burning Issue 4 to 1 1 1i i t Ottawa High in Terest rates they close put farms and Small businesses in and put the squeeze on Large one Way or we will All be feeling the effects for a Long but at the political there inevitably is a shaking Down some concerns touch closer to the nerve than in the Public imagination and on the doorsteps of the one or two issues in part they become the tangible sym Bol of what the economic crisis is All they become a High profile target for political so it is that one item assured in finance minister Maceachen Bud now receiving its finishing touches in is action of some sort to reduce the financial Burden on Home owners hit by today 21percent Mort Gage renewal for Paul the min ister responsible for Canada mortgage and housing corporation has been reassuring canadians that those most hard pressed can expect government referring them to the throne speech Promise of that those facing the spectre of foreclosure due to abnormally High Mort Gage renewal rates would be last thursday in the both Cosgrove and finance minister Allan Maceachen became marginally More firm in heir both were commenting on actions by the Royal to reduce its mortgage interest Rau n per cent and offer a deferred arrangement which would costs Down an addition Al percentage Cosgrove demanded that All Mort Gage holders suspend any action that would put homeowners at risk until the budget comes Down indicating what the government would take in Van Cert with mortgage Mac moments confirmed that the government would be ready to if to supplement the actions of the private almost since the moment Parlia ment reconvened the opposition parties have been United in demanding government action to bail out Home owners facing mortgage be ginning the very first and almost daily opposition members have been rising in their seats after question periods to present petitions to the Joan Cohen Ottawa editor each bearing the signatures of a thousand or several thousand unhappy by last some sensational new weaponry had been added to the opposition the announce ment by nip Leader de Broadbent of figures contained in a secret Cabinet document calculating that some households could face financial hard ship Over the next year As a result of the High Cost of mortgage the prepared by Chc and bearing co Groves calculated that for to mortgage of the million renewing mortgages Over the next two continuing High interest rates would constitute an unmanageable for the document went the major household asset will have been lost because of events Over which they have no the in went on to paint a Bleak picture of a coming crisis in the rental As with investment in new construction drying up and the vacancy rate approaching Zero in most markets by Accord ing to that High interest rates Are producing costs for apartment owners of some per unit per month Over and above the average rental payments of coming in one senior has suggested that apartment owners now facing mortgage particularly in provinces under rent May be running into problems As desperate As those of homeowners and should be a target for government but one fact emerges strongly out of the High interest rates Are not Only creating immediate prob they Are building up possibly even More critical problems for the with the Stock of new houses As Well As rental units now dropping to dangerously Low the Cabinet document calculates new housing starts for the jul sep tember period to have been at an annual rate of compared to a Normal rate of chalked up Dur ing the previous Quarter fore casts that new construction could run at the same level through representatives of the housing meeting with government officials in calculated the current rate at starts for the and went on to warn of heavy spinoff effects on the Economy As a result of the yet the government has very Little room to and the chances Are that the budget will not go too if it acts at to ameliorate Tomor rows housing that May very Well have to wait for or the Muhlon Gedford decline in interest what it is widely expected to do first of help lower income Home owners now facing mortgage renewals under a macs assisted Home owner ship and of wider the budget May Well Call on All financial institutions to adopt an interest reduction and payment deferral plan similar to that of the Royal according to spokesmen for the in if Maceachen budget Mes Sage Calls on them to Institute they will the government could bring in Laws imposing such a measure on the but it is suggested such a step would be Royal Bank officials consider their plan a Short term and in fact it runs Only until next under the Bank will assume the Cost estimated at million of a two percentage Point interest rate Deduc Tion on mortgages coming up for renewal beginning last the further reduction will be at the homeowners sex with the unpaid amount added to the to be paid off the in Many will be that mortgagees will be faced with a higher debt in one years time than they have at and nobody pre tends that the method is without its but the Hope of course is that a year from now the mortgage debt will be More Many of the homeowners opting for these terms will Likely have made Low Down payments when they bought their and have accumulated Little there have been suggestions that Maceachen might move to remove the risks assumed by the Banks under the plan by insuring them against loss on the heightened debt they would be observers also see some Prospect of one of two proposed devices utilizing the tax deferred registered retire ment savings plan appearing in the under the most widely publicized homeowners would use funds in their rasps to lend Money to them selves to finance their reduced and tolerable the interest they pay Back to themselves would go into their resp As retirement the obvious defect in this proposal is that this option would be unavailable to Lowe income few of them have Money in resp a second put Forward a few weeks ago by the housing and Urban development association of Canada spokesman organization for the hard pressed residential housing Industry would provide the same tax exemption to mortgage up to a specified As that allowed funds puts into an the Industry argues that such a move would recognize that a Home constitutes the Grea test equity most people build up during their working lives and thus put these payments on an equal footing with resp As a savings a More direct route would be for Maceachen simply to make mortgage interest payments tax least in but after jeering Long and hard at the tories Over this proposed budget measure in the Trudeau government is not Likely to want to move in this harassed homeowners fearing foreclosure watch Paul Cosgrove and Allan of forfeits the new Accord la Sedan and believe these luxurious new Honda accords will set the standards of automobile value for years to totally inside and their appearance belies the fact that they Are still truly economical cars to own and to the sleek new aerodynamic profile cuts the air with More fuel saving efficiency than a longer wider new suspension and ventilated front disc brakes gives them a better ride and while new interiors with soft Moquette Ile carpeting pro vide an extraordinary degree of the list of Standard features is so Complete there Are very few additions you could think and improved handling and better performance Are As precise and As responsive As any Driver could wish the new Accord 4door la Sedan and 2door Hatchback Are astonishing transformations of what were already remarkable they will Challenge your belief in the High Cost of for years to 1982accord great Plains Honda 934 Portage Avenue 7865871 sales 7758575 service Honda Trade Centre 1004 Nairn Avenue 6694273 North main Honda 1180 main Street North 5868129 Steinbach Harvest Honda 166 main Box 2817 3261311 2849425 i ;