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Earlier this year, the Reserve Bank of India slashed the repo rate from 4.4% to 4% p.a. – the rate at which it lends to banks across the country. The reduction would mean banks can now pass on the benefit of low lending rates to the end-users. As a result of this, PSU home loan rates which were in the upwards of 8% in the recent past have now dropped to as low as 6.75% p.a., a 15-year low!
In this article, we will take a look at what this means to both, prospective home buyers and the real estate sector:
What This Means for Prospective Home Buyers
People who were on the hunt for their dream home but were put off by the high interest rates can now get the maximum benefit of a low interest rate. This means they can easily save a few lakhs of the interest amount they would have had to shell out during the loan tenure.
For instance, if you are looking to get a home loan of Rs.50 lakh currently at say, 6.75% p.a., the interest amount payable for a 20-year tenure would be roughly Rs.41 lakh. On the contrary, the interest amount payable for the same amount and tenure at 8% p.a. would be a whopping Rs.50 lakh, a difference of Rs.9 lakh! Also, the loan EMI payable would differ by close to Rs.48,000 per annum!
What This Means for the Real Estate Sector
The real estate sector is all set to witness renewed buyer interest as home loan rates have become far more attractive for prospective buyers. The beginning of the year saw a decline in home buyers given the pandemic situation, job loss, and uncertainty. The reduction in home loan rates, however, have sparked an interest in people looking to buy bigger, more spacious homes. This has drastically increased buying activity and has given builders the opportunity to offer great schemes for those looking to buy homes in the near future.
What This Means for Someone Buying an HM Indigo Home
HM Constructions offers the best home buying scheme allowing individuals to own a home by paying a minimum Rs.10,000. Add to this, the EMI Holiday Facility lets homeowners delay EMI payment to a later point in time when they are at a better financial position to make payments.
This works wonderfully to the advantage of the buyers since they can forgo paying Rs.20,000 rent for their current homes and earn a proxy rental of Rs.20,000. The net saved plus net earned adds up to Rs.40,000, an offer nobody can resist!
Call us on 8880225555 for a model home visit today!