Page 5 - Home Loans

LICHF hikes lending rate by 0.35 pc, home loans to cost 8.65 pc now

Mortgage lender LIC Housing Finance joined peers and hiked its lending rate by 0.35 per cent. The move, which comes a week after an increase by bigger rival HDFC by a similar quantum, entails that the minimum rate of interest will get revised to 8.65 per cent for the best-rated borrower. In a statement, the company said it has increased the LIC Housing Prime Lending Rate (LHPLR), to which the interest rate on its loans is linked, by 0.35 per cent. "The increase in rates is in tune with the market conditions," the company's managing director and chief executive Y Viswanatha Gowd said. He added that there is good sustenance in the home-buying activity in the real estate sector at present. It can be noted that the Reserve Bank has hiked the repo rate, at which it lends to the system in five consecutive moves by a cumulative 2.25 per cent since May this year. Lenders in the system have responded to the hikes affected by the RBI.

Sum total of all your EMIs should not exceed 40% of your net income

Make sure buying a house will not lead to compromises on other crucial financial goals

SBI's personal banking advances excluding home loans cross Rs 5 trn mark

SBI on Monday announced that its personal banking advances excluding high value home loans have crossed the Rs 5 lakh-crore mark. The largest lender in the country took a year to book the last Rs 1 lakh crore of advances, as against over 15 months for the previous Rs 1 lakh crore and over 30 months for the previous Rs 1 lakh crore, as per an official statement. "A series of tactical measures and digital initiatives undertaken over the past few years played a crucial role in our journey to the Rs 5 lakh-crore mark under personal banking advances," the bank's chairman Dinesh Kumar Khara said. Khara stressed that the Rs 5 lakh crore excludes housing loans, where the bank has the numero uno position in the market. Personal Banking advances mainly comprise personal loans, pension loans, auto loans, education loans, gold loans, and other Personal loan products, the statement said. SBI has 22,309 branches, over 65,000 automated teller machines and also 66,757 business correspondent outle

HDFC retail loan demand at 8-year high, standalone net profit rises 18%

Shifted from quarterly reset for individual loans to monthly one

After contraction, PNB Housing Finance eyes Rs 1 trillion home loan books

It disbursed loans worth Rs 3,594 crore in Q2FY23, up from Rs 2,961 crore in Q2FY22

Prestige Estates Q2 sales bookings rise 66 pc; H1 bookings jump over 2-fold

Realty firm Prestige Estates Projects Ltd's sales bookings rose 66 per cent year-on-year to Rs 3,511 crore in the second quarter of this fiscal on higher demand despite a rise in home loan interest rates. Prestige Group has registered sales of Rs 3,511 crore in the July-September period against Rs 2,111.9 crore in the year-ago period. The collection from customers increased 68 per cent year-on-year to Rs 2,602.9 crore, the company said in its operational update for the Q2 and H1 of this fiscal filed on stock exchanges. "The sales during this period are attributed to 4.55 million square feet volume with an average realisation of Rs 7,711 per square feet," the company said. During the April-September period of this fiscal, Prestige Group's sales bookings more than doubled to Rs 6,523.1 crore from Rs 2,845.9 crore in the corresponding period of the previous year. The sales during this period are attributed to 8.18 million square feet volume with an average realisation of Rs 7,976 per

Select lender that will offer amount needed to buy chosen property

While you should evaluate festive offers, criteria like ease of prepayment are also crucial

SBI, HDFC offer discounted home loans at 8.40% as part of festive sales

Despite rising interest rates, leading home loan players SBI and HDFC have announced discounted interest rates beginning at 8.40 per cent as part of their festive offerings. SBI in a statement said that its home loan book has topped the Rs 6 lakh crore mark, a first in the industry. The leading lender said it is offering up to 25 bps discount on interest rate to new home loan borrowers, making the entry level rate at 8.40 per cent and the offer will run up to January 31, 2023. The largest pure-play mortgage player HDFC, which is awaiting its merger with its banking subsidiary HDFC Bank, said it's also offering discounted interest rates to new borrowers to the tune of 20 bps or at 8.40 per cent. According to HDFC website, the festive offer is valid up to November 30, and the low rate will be applicable to those borrowers who have a minimum credit score of 750. Leading banks and mortgage players have increased their lending rates by up to 0.50 percentage point after the Reserve Bank

Can Fin Homes to consider raising up to Rs 4,000-cr debt capital

Canara Bank promoted housing loan provider Can Fin Homes is planning to raise debt capital of up to Rs 4,000 crore and will seek board of directors' approval on this proposal later this month. The board of directors of the company is scheduled to meet on October 17, 2022 to approve financial results for the company's second quarter and first half ended September 2022-23. "At the said meeting the proposal is being placed to the board seeking approval and authorisations for issuance of non-convertible redeemable debentures up to an amount of Rs 4,000 crore, on private placement basis," Can Fin Homes said in a regulatory filing on Thursday. The company said it will raise the funds in one or more tranches for a period up to the date of the annual general meeting of the current fiscal year. The home loan company said the shareholders approved the debt raise plan at the annual general meeting held on September 7, 2022. Canara Bank has shareholding of 29.99 per cent in Can Fin Homes. Sh

Loan for 20 years, EMIs for 24: RBI rate hikes leave borrowers in a fix

If a person took a 20-year home loan of Rs 50 lakh in April 2019, their number of EMIs will now be 60 more than the original because of the recent repo rate hikes

DLF sells all 292 luxury homes in new project at Gurugram for Rs 1,800 cr

Realty major DLF has sold all 292 luxury homes in Gurugram for over Rs 1,800 crore within few days of the launch of the project, signalling strong demand despite rise in interest rate on home loans and property prices. On September 26, DLF had launched its project 'The Grove' located at DLF phase-5 in Gurugram, Haryana. The company has advertised in leading newspapers that "'The Grove' is now sold out". According to sources, the project has been completely sold out in just eight days of the launch. The total sales revenue from this project is over Rs 1,800 crore. Housing sales across all segments -- affordable, mid-income, luxury and super luxury -- have revived significantly after the second wave of the COVID pandemic, which hit India during April-June 2021. "We have launched a new project which will be low-rise luxury development comprising 292 residences. The total developable area in this project is 8.5 lakh square feet," DLF Group Executive Director and Chief Business Officer

MPC after-effect: SBI, ICICI Bank, YES Bank, BoI raise lending rates

The hike in lending rates shall be applicable to home loans and consequently, equated monthly instalment payments made by customers.

Residential sales might see a slowdown as RBI hikes repo rate: Experts

The repo rate hike does not augur well for the real estate sector, especially the residential segment as it will result in increased mortgage rates.

Prepay home loan to tackle 190-bps rise in repo rate since May: Experts

If you don't have a surplus, opt for higher EMI rather than longer tenor

Costlier home loans may have minimal impact during festive demand: Builders

Housing sales are likely to be affected as home loans will become costlier after the RBI's latest hike in repo rate, but builders hope that pent up and festive demand will negate any major impact on buying sentiment. Interest rate on home loans is currently at around 8 per cent and is expected to inch towards 9 per cent after the 50 basis points hike in repo rate announced by the RBI on Friday. This will reduce affordability of buying homes. However, property developers and consultants feel the impact will be "minimal" and not significant as the concept of home ownership has gained momentum during the COVID-19 pandemic. Moreover, builders are banking on festive demand to sail through. Developers are already offering price discounts and freebies to boost sales during the festival season and may further sweeten the deals to attract fence sitters, they said, and advised prospective homebuyers to take advantage of the offers. "We expect the rise in repo rate not to impact positive ...

HDFC raises lending rate by 50 basis points; home loan EMIs to increase

Mortgage lender HDFC Ltd on Friday hiked its lending rate by 50 basis points hours after the Reserve Bank raised the benchmark interest rate to tame inflation. The move would increase EMIs for housing loans by the firm. "HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from October 1, 2022," the country's biggest housing finance company said in a statement. This is the seventh rate increase undertaken by HDFC in the last five months. Other financial institutions and banks are also expected to follow suit after the RBI on Friday raised the key interest rate by 50 basis points, the fourth straight increase since May. The Monetary Policy Committee (MPC), comprising three members from the RBI and three external experts, raised the key lending rate or the repo rate to 5.90 per cent -- the highest since April 2019 -- with five out of the six members voting in favour of th

Home loans dearer, moderate impact on residential sale from RBI rate hike

The RBI's decision to hike repo rate will hit consumers' buying sentiment, but will have a moderate impact on housing sales in the affordable and mid-income categories, according to industry experts. With a hike in repo rates by 50 basis points, interest rates on home loans will rise and affordability of buying homes will reduce, they said. However, property developers and consultants feel that impact will be limited in view of pent up, as well as current festive demand. Developers are already offering discounts and freebies to boost sales during festival season and may further sweeten the deal to attract fence sitters. Anarock Chairman Anuj Puri said: "With this repo rate hike, home loans will get dearer soon. This could impact residential sales to some extent during the upcoming festive quarter, particularly in the affordable and mid-range housing segments." Housing sales have risen by 40-50 per cent in the July-September quarter, despite a hike in interest rates on home loans a

Consider festive offers that lower your cost of house acquisition

Don't let freebies blind you to key considerations like location, infrastructure, and the developer's record

Demand for 3-bedroom homes higher than other choices for first time: Report

Housing market better investment option than it was 12 months ago, respondents tell CII-ANAROCK Consumer Sentiment Survey

Sachin Bansal-led Navi Tech gets Sebi green signal for Rs 3,350 cr IPO

The firm provides digital-first distribution of personal loans, home loans and health insurance to customers without the need of physical infra