Is now the right time for you to buy the home you've been dreaming about fo all these years? or maybe its your first home... Which ever the case, chances are, purchasing a home is one of the biggest purchases, if not the biggest purchase you'll ever make.
Let iCore Go Bank help ease your mind with some no nonsense information designed to help you make the RIGHT decision.
Why buying a property makes sense right now?
With the second wave of the Coronavirus pandemic adversely affecting the economy, the Reserve Bank of India (RBI), on June 4, 2021, decided to keep the repo rate unchanged amid rising pressure on the banking regulator to offer liquidity support to the economy. With home loan interest rates already at a record low, the year 2021 is possibly the best time to purchase a property using borrowed capital. This is especially true, if you also keep in mind the discounts offered by developers and the reduction in stamp duty announced by various state governments.
More importantly, property prices are also at a low trajectory currently, and are likely to move upwards when the economic state of India starts to improve.
Check out iCore Go Bank's Mortgage Rates.
Things to keep in mind:
Amid increasing delinquency rates, almost all banks now offer their best interest rates only to applicants with good credit scores. As mentioned earlier, a credit score above 700 qualifies as a good credit score.
Changes in the repo rate will not immediately reflect in your home loan EMI payments. Rates are reset by banks at fixed intervals.
Be mindful that banks cannot charge a penalty for prepayment of home loans linked with the floating rate of interest.
FAQs
What is the repo rate?
The repo rate is the interest that India’s apex bank, the RBI charges from scheduled banks in the country, to offer them funds. Whenever there is a tweak in the repo rate, the banks also increase or decrease the interest rates for the common man.
How is an HFC and a bank different?
While banks are also engaged in various other activities, HFCs purely engage in the function of providing home loans.
My credit score is poor. Will I have to pay higher interest rates?
Most banks now offer their best rate to customers with impressive credit scores. This means, borrowers with poor scores will be asked to pay higher interest.
