Here are some pointers that should serve as red flags for you
Though the Reserve Bank of India decided to reduce the risk weight for home loans between Rs 20 lakh (Rs 2 million) and Rs 30 lakh (Rs 3 million) to 50 per cent, the possible benefit for banks seems to be more than neutralised by 75 basis point rise in cash reserve ratio and increase in the cost of resources, which is linked to yields on government bonds and competition, bankers said.
Applying for a home loan may seem scary if you go into the process unprepared, but if you have braced yourself well in advance and follow these steps you will find that getting your home loan application approved is a breeze.
The country's largest housing finance company HDFC Ltd will merge with the country's largest private sector lender HDFC Bank, according to a regulatory filing. The scheme of amalgamation will be subject to various regulatory approvals, including from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi), HDFC Bank said in the filing on Monday.
Currently, ICICI Bank and HDFC do offer fixed-rate loans but the differential between fixed and floating rate loans is huge.
Will the intense rate cut war help Indian consumers of home loans? What are the pros and cons of availing home loans that have fixed rates for the first two to three years and then switch to floating rates?
The bank lost out on fairly meaningful quantum of fees from point of sale terminals and ATM usage during the demonetisation exercise.
A mortgage is a great responsibility that you must bear on able shoulders for a long period of time. If you already have a mortgage or are planning to avail of one soon, you are obviously confident of your finances, but a few tips to save money on your home loan couldn't hurt, right? Read on to find out more!
Urban housing mortgage major HDFC announced that it will cut its lending rates by the end of the week.
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
The bank has increased its spreads or mark-up over base rate paid by a borrower by 0.10 per cent.
The central bank last year had raised key policy rates which resulted in tightening of liquidity, a step aimed towards addressing inflation concerns.
Do you know that your application can get rejected on account of a not so perfect CIBIL score?
Discrimination between old and new customers have come down after base rate.
'If the new rate is lower than your current rate, ask your bank to shift you to it.' 'This can be done by paying a fee of Rs 5,000 to Rs 6,000.'
New borrowers should go for banks over housing finance companies as the new benchmark -- MCLR -- is more transparent.
Say cost of funds too high to lower lending rates.
Housing loan customers may have to repay part of their borrowings or suffer very high EMIs, as there is a scurry among banks to avoid bad debts following successive interest rate hikes in the last six months.
Interest on home loans is likely to remain low and the share of banks in the overall mortgage market is set to rise in the medium term.
Before taking the plunge and being a co-applicant, make sure that you are aware of the rights and responsibilities that come with it!
HDFC, the pioneer, ICICI, the game-changer, and SBI, the original teaser, turned the market on its head.
Mortgage major HDFC and ICICI Bank also discontinued with their special home loan schemes, which offer lower interest (teaser) rate for the first few years of the credit period.
Teaser loans may be on their way out with Canara Bank and Union Bank of India opting to withdraw the scheme in anticipation of a high interest rates.
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
Lower interest rate, lower stamp duty and higher chances of loan application being accepted give women an edge over men when fulfilling purchase of their dream home
Housing Development Finance Corporation, India's largest mortgage financier, today increased its retail prime lending rate by 50 basis points to 14.25 per cent. This is the first time HDFC is increasing its PLR in two years.
There are other charges too that you need to budget for
With public sector banks reducing interest rates on home loans up to Rs 20 lakh (Rs 2 million), housing finance companies (HFCs) might be under pressure to follow suit in order to stay competitive.
Do you feel cheated when your bank reduces floating home loan rates for new borrowers without thinking much about the existing ones? What should you do then? Is there any legal recourse that you can seek?
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
Citigroup is expanding its relationship with Housing Development Finance Corporation beyond the stake it owns in the country's mortgage lender.
Low home loan rates by banks could put large players in an advantageous position over smaller non-bank players, believe analysts.
'We created war rooms -- from an IT perspective and also a customer war room -- to address any challenges that come up.'
Housing finance major HDFC on Monday reported a 16 per cent growth in standalone net profit to Rs 3,700 crore for the January-March quarter, helped by record loan sales on the back of benign interest rates and the resultant fall in cost of funds along with the near-total repayments that culled provisions and credit costs. For the full year, the company, which is working on a reverse merger with its banking subsidiary, has booked a net profit of Rs 13,742 crore, up from Rs 12,027 crore in FY21, vice-chairman and chief executive Keki Mistry said on Monday in an earnings call with analysts. On a consolidated basis, net profit for the quarter surged 21.6 per cent to Rs 6,892 crore on-year and for the full year it jumped 21 per cent to Rs 22,595 crore, Mistry said and guided towards better days.
Bank credit growth is expected to moderate this financial year after a robust 16 per cent estimated for last financial year, driven by strong economic activity and retail credit demand. There are three reasons for this: a statistical high-base effect given the strong growth seen last financial year, revision in risk weights by the Reserve Bank of India (RBI), and relatively slower economic activity.
