With the Federal Reserve cutting rates by 1.25% over the past 3 weeks, RBI will be forced to follow suit and cut by atleast 0.5 to 0.75. I expect the loans rates to go down to 9.75 floating in the near future. Its best for borrowers to wait few more months for the RBI to cut rates before jumping the gun. Housing supply is abundant so the builders are in no hurry to raise prices, rather one can negotiate upto 10-15% and I think they will oblige if you are willing to write a check the right next moment
Times has the article on HDFC cutting loans
MUMBAI: Finally there is good news for people who have taken a loan with a floating interest rate to buy their dream homes. HDFC, the leader in the home finance business, has decided to cut interest rates on floating rate home loans for all its existing customers by 25 basis points. With the leader cutting rates, the market expects it will be only a matter of time before other players follow.
On Thursday, HDFC said it would cut its retail prime lending rate (RPLR) — the rate to which all its interest rates are benchmarked — by 25 basis points to 13.75% per annum from the 14% earlier. The cut is effective from February 1. It has, however, kept its floating rate for new customers unchanged at 10.25%.
This means all HDFC floating rate customers will see a cut in rates by a quarter of a percentage point. However, the effective date for each will vary. "The advantage of a cut in RPLR will accrue to all the existing floating rate customers over the next three months based on their respective reset dates," HDFC said in a release.
The other major players in the sector are ICICI Bank and SBI. ICICI Bank is still to take a decision on revising its housing loan rates. A top ICICI Bank official said its decisions on home loan rates were based on its cost of funds. "We will continue to watch the market closely." Till Thursday evening, SBI had not taken any decision on home loan rates.
Times has the article on HDFC cutting loans
MUMBAI: Finally there is good news for people who have taken a loan with a floating interest rate to buy their dream homes. HDFC, the leader in the home finance business, has decided to cut interest rates on floating rate home loans for all its existing customers by 25 basis points. With the leader cutting rates, the market expects it will be only a matter of time before other players follow.
On Thursday, HDFC said it would cut its retail prime lending rate (RPLR) — the rate to which all its interest rates are benchmarked — by 25 basis points to 13.75% per annum from the 14% earlier. The cut is effective from February 1. It has, however, kept its floating rate for new customers unchanged at 10.25%.
This means all HDFC floating rate customers will see a cut in rates by a quarter of a percentage point. However, the effective date for each will vary. "The advantage of a cut in RPLR will accrue to all the existing floating rate customers over the next three months based on their respective reset dates," HDFC said in a release.
The other major players in the sector are ICICI Bank and SBI. ICICI Bank is still to take a decision on revising its housing loan rates. A top ICICI Bank official said its decisions on home loan rates were based on its cost of funds. "We will continue to watch the market closely." Till Thursday evening, SBI had not taken any decision on home loan rates.
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