Page 4 - Home Loans

Home loan EMI in affordable housing category up 20% in last 2 yrs: Anarock

Home loan EMIs for customers who bought properties less than Rs 40 lakh have gone up 20 per cent in the last two years due to a rise in mortgage rate, according to real estate consultant Anarock. The consultant pointed out that the affordable housing segment suffered the most during the COVID pandemic and has not recovered in the last two years. Anarock said that affordable home buyers have been paying almost 20 per cent more in their EMIs over the last two years. The floating interest rates for home loans up to Rs 30 lakh have risen from 6.7 per cent in mid-2021 to nearly 9.15 per cent now. "Home loan borrowers who were paying an EMI of approx. Rs 22,700 in July 2021 are now paying about Rs 27,300 today -- an increase of approx. Rs 4,600 per month. This 20 per cent increase in the EMI has resulted in a jump of approx. Rs 11 lakh in the overall interest component - from approx. Rs 24.5 lakh interest payable in 2021 to approx. Rs 35.5 lakh today," Anarock Head-Research Prashant Thaku

Affordable home buyers suffer most, EMIs up 20% in just last two years

The total interest payable over a 20-year tenure is now more than the principal amount.

Govt told banks not to take harsh action against borrowers for loans: FM

Union Finance Minister Nirmala Sitharaman on Monday said both public and private banks have been instructed that harsh steps should not be taken when it comes to the process of loan repayment and that they should handle such cases with sensitivity. Sitharaman said this while making an intervention during the Question Hour in the Lok Sabha on a question related to repayment of loans taken by small borrowers. "I have heard complaints about how mercilessly loan repayments have been followed up by some banks. The government has instructed all banks, both public and private, that harsh steps should not be taken when it comes to the process of loan repayment and they should approach the matter with humanity and sensitivity in mind," she said.

RBI looking at additional loans for home buyers of stuck projects

A meeting of a committee was held on June 19 to discuss issues related to "legacy stalled projects" in real estate

In a first, Bajaj Housing Fin offers extended home loans: Should you opt?

Whenever you opt for a loan scheme, you must thoroughly examine your financial situation, income stability and existing debt.

What a hike in MCLR means for borrowers: Who gets impacted and who doesn't

Marginal Cost of Fund based Lending Rate refers to the minimum interest rate a bank must charge for lending. The bank cannot grant any loan below that rate, except in certain cases permitted by RBI

Explained: Repo rate unchanged at 6.5%, worst over for home loan borrowers

The lowest rates being offered in the home loan market today are in the 8.40 to 8.50 for eligible borrowers.

RBI policy: How a repo rate hike/cut impacts your home loans and EMIs

The EBLR serves as a benchmark rate that determines the interest rate applicable to the loan. So, with the hike in repo rate, all existing home loans on floating rates of interest became expensive.

Thinking of prepaying your home loan? Things you should keep in mind

If home-owners have received a bonus, they may consider investing it in the capital markets instead of prepaying the loan

UCBs seek hike in cap on home loans, separate limit for commercial realty

Have also asked for revision in norms for gold loan repayments

Home loans inquiries slowing; marked increase in unsecured credit: Report

Home loans, the mainstay of retail lending, witnessed a dip in demand in the December quarter, a credit information company (CIC) said on Wednesday. However, there has been a 'marked increase' in demand for credit cards and personal loans, which constitute the more stressful unsecured loans portfolio for banks, Transunion Cibil said. The demand for unsecured lending products is being driven by the adoption of consumption-led credit products, the CIC said. Inquiry volumes for home loans for the three months ending December 2022 were 1 per cent lower than the year-ago period, while the same for personal loans and credit cards shot up by 50 per cent and 77 per cent, respectively, it added. From a loan origination perspective, home loans witnessed a 6 per cent dip by volume and 2 per cent by value in the December quarter against a healthy uptick in personal loans, credit cards and two-wheeler loans segment. It can be noted that the period saw a surge in interest rates, which led to ..

Top Headlines: Home loan rates to get dearer, Covid-19 tests up 84% & more

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RBI rate pause: Lock into best available FD rates, and ladder your bets

Debt MFs investing in quality papers and having average maturity of three-five years are good bets

Gift, loan, house rent: How your family can help in saving taxes

Provisions in the law allow your parents, spouse and siblings to maximise your tax returns

Costly home loans pinch realtors, worry about financial closure of projects

Worry about financial closure of projects if interest rates go up any further

Consider switching home loan if you can get 35-45 bps lower rate

Avoid extending the tenure while transferring as this will nullify the gains

New and old: How two tax regimes work for home loan interest benefit

You can benefit under the new tax regime but there are a few caveats

How have the home loan EMIs changed since RBI's repo rate hike in May 2022?

The deposit and lending rates are directly proportional to the repo rate, and they generally go up if the benchmark rate is hiked

Prepay at least 5% of your home loan each year to tackle rising rates

With rates cuts unlikely anytime soon, debt mutual fund investors should avoid duration calls

Affordable housing demand to remain low as home loan rates rise: Experts

Some believe the impact of the interest rate hike has been limited and would not dampen homebuyers' spirit much, as demand remains high