Overview

In November 1984 the Victorian Ministry of Housing initiated the Capital Indexed Loan (CAPIL) Pilot Scheme. The Australian Institute of Family Studies was contracted for the task of evaluating the Pilot scheme and the evaluation commenced in April 1985. This report provides data from: the first wave of interviews with 481 loan recipients (90% of the total number which received loans through the Pilot scheme); the first wave of interviews with the 'control group' families in the private rental market. Where possible on the basis of research so far, objectives are assessed against outcomes. With regard to financial outcomes, families moving from private rental where they paid substantial proportions of their income in rent have experienced increases in disposable income of 20 per cent on average. There have been few increases in costs associated with the move into home ownership that have caused financial difficulties. The majority of families reported that they were able to meet living costs and some were able to save. At this early stage of the scheme there have been no families who have defaulted on their loan agreement because of economic difficulties. Suggestions are made about issues which need to be addressed further.