What Experts Say About Recent Home Loan Cuts
The country’s major lenders including the State Bank of India (SBI), Kotak Mahindra Bank, HDFC Bank, as well as ICICI Bank recently cut interest rates on home loans. In addition to low interest rates, banks have a variety of offers, including discounts on processing fees or special customer benefits to attract home buyers. On Friday March 5, ICICI Bank, the country’s largest private lender, announced that it was cutting its mortgage interest rate down to 75 lakh to 6.70%, its lowest level in 10 years. (Also Read: ICICI Bank reduces the interest rate on home loans to the lowest in 10 years)
It came days after the country’s largest lender, the State Bank of India, cut its mortgage interest rate down to 75 lakh to 6.70%, its lowest rate on loans. real estate never registered. As the year draws to a close, major banks have cut interest rates on mortgage loans to take advantage of easing stamp duties and compete in an industry with weak credit demand.
Here are some comments from real estate industry experts on the recent drop in mortgage interest rates and its effect on the industry as a whole:
“The reduction in mortgage interest rates by major banks for a limited period has extended the best buying opportunity for home buyers. Banks are competing to foreclose home loan customers before year-end. an all-time low in 15 years, as banks compete in a market where demand for credit is weak. The favorable interest rate environment will continue for some time and interest rates are unlikely to fall further from current levels, ”said Pritam Chivukula, Co-Founder and Director, Tridhaatu Realty (Secretary , CREDAI-MCHI)
For the next few days, buyers can enjoy great deals thanks to the lowest interest rates on home loans, the easing of stamp duties, offers and the availability of good developer picks. We can already see that the demand for residential properties has increased now that people are starting to believe that it is the best time to buy a property, ” added Pritam Chivukula.
“There is already a growing desire to own a home as consumers see it as a necessity in this unprecedented time of the COVID-19 pandemic. With the last days remaining to enjoy the stamp duty advantage, there is stiff competition among financial institutions to offer consumers the best interest rates for home loans, ” said Ashok Mohanani – President, NAREDCO Maharashtra
“This is the best time to buy a home because it gives aspiring homebuyers a lifelong opportunity to purchase their dream home with reduced stamp duties as well as historically low interest rates. These factors are also proving to help stimulate real estate demand which has been temporarily affected following the pandemic, ” added Ashok Mohanani.
“The reduction in mortgage rates by the major banks will help demand enormously. Currently, the lowest interest rates ever, below 7%, encourage consumers to buy and complete transactions quickly. the rates also help improve homebuyer eligibility, which brings more customers into the market, ”said Jayesh Rathod, executive director, The Guardians Real Estate Advisory.
A low interest rate regime is doomed to catapult unimaginable economic growth into the country due to increased consumption. Low interest rates coupled with negligible or zero transaction costs bode well for the ready-to-move-in homes and the affordable housing industry. Both of these categories will benefit greatly from the reduced fares, ” Jayesh Rathod added.