Low home loan interest rates: What to keep in mind before bottom fishing?
The banks flush with liquidity are tapping mortgage buyers as these loans are safe, secured and also offer potential to cross-sell multiple banking products in future
Anand Adhikari | March 15, 2021 | Updated 14:37 IST
Currently, all home loan rates are linked to an external benchmark, which is repo rates in most cases
Banks like State Bank of India, ICICI Bank, Kotak Mahindra Bank and others are offering as low as 6.65 to 6.75 per cent home loan rates. The banks flush with liquidity are tapping mortgage buyers as these loans are safe, secured and also offer potential to cross-sell multiple banking products in future. But a borrower should look at following factors before committing for a 15-20 year loan.
Highlights
Buyers will get flats by February next year.
Four more builder projects expected to get money soon.
New Delhi: The Central government has sanctioned Rs 165 crore for the completion stalled builder projects in Greater Noida, that will fulfill the housing dream of 900 buyers, as per a newspaper report.
Under the project, to be completed in two phases, buyers will get flats by February next year. Four more builder projects are expected to get money soon, that will enabling in construction of about 2500 more flats, a Hindustan report said.
In order to give relief to homebuyers of stalled projects, a Special Window for Completion of Affordable and Mid-Income Housing (SWAMIH investment fund) has been created for funding stalled projects that are net-worth positive, including those projects that have been declared as Non-Performing Assets (NPAs) or are pending proceedings before the National Company Law Tribunal under the Insolvency and Bankruptcy Code. SWAMIH investment
Read more about SBI reduces home loan interest rates to 6.7% on Business Standard. SBI home loan interest rates start from 6.7% for loans up to Rs 75 lakh and 6.75% above Rs 75 lakh; the lender is also offering 100% waiver on processing fees
Planning for Home Loan Transfer: Here are Few Things to Consider
FOLLOW US ON:
Falling interest rates on home loans are prompting many existing borrowers, who are paying much higher interest rates, to shift lenders offering much lower rates with better service in order to save on the overall interest. Banks and housing finance companies have been offering home loans at rates starting from 6.75 percent-6.9 percent a year. But before you consider making the shift, here are some important things to consider.
The borrowers’ intention to transfer the balance home loan to another lender is fuelled by reduction in overall interest pay-out without impacting the liquidity and existing investment. Availing the balance transfer is helpful for those who took loans at higher interest rates and are now eligible for a much lower rate owing to their improved credit profiles.