Page 5 - Home Loans

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

Business Standard brings you the top headlines at this hour

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

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