Home loan interest rates are becoming more dynamic. Over the last year or so, the Reserve Bank of India (RBI) has gradually reduced the Cash Reserve Ratio (CRR) and repo rate. Further, there has been increased competition in the home loan market. Banks have reduced the rates on their floating rate home loans. However, as banks did not lower the base rate, existing borrowers continue to pay more than new home loan borrowers. With the recent cuts in the key interest rates, borrowers on floating rates were also expecting a cut in the interest rate on their home loan. After all, they had borrowed at a floating rate and were supposed to float with the changes in the interest rates. However, the interest rate reductions announced were for new borrowers. They were not applicable for the existing borrowers. indianrealestatemarket/home-loan-management-tips-before-switching-to-new-lender/
Posted on: Wed, 19 Jun 2013 15:27:44 +0000
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