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The interest rate on home loans can be as low as 6.5 percent.
Factors like favourable demographics, greater affordability of residential properties, and record low mortgage rates are driving demand for house loans. Many large banks, mortgage firms, and housing financial institutions have slashed interest rates on home loans over the festival season to capitalise on the rebound in housing demand following the COVID-19 pandemic’s second wave.
The interest rate on home loans can be as low as 6.5 percent.
When asked about the impact of HDFC’s decision to drop mortgage rates for the Christmas season on home loan disbursals, Managing Director Renu Sud Karnad noted that while the lower interest rate helps, it is only one of several factors that contribute to the increase in demand for home loans.
“Housing is far more affordable today than it has ever been. Property prices have stayed relatively constant across the country in recent years, although income levels have risen “she remarked
People are also moving to larger apartments, according to Karnad, due to the need for more room following the COVID-19 pandemic’s breakout.
“Because of the epidemic, people are working from home, getting their education from home, and doing their leisure from home,” she remarked.
The company is optimistic, according to LIC Housing Finance’s managing director and CEO, Y Viswanatha Gowd, because there is a need for ready-made dwellings.
“There is already a backlog of demand, and the labour market is improving. Because markets are becoming more open, our clients’ sentiments are also rising. Vaccination comfort has given individuals more confidence to wander around and physically look at properties before making a decision.
Gowd anticipates robust housing demand during the festival season and beyond, particularly in the ready and cheap home segments.
Ramesh Nair, the new CEO of property consultancy Colliers India, stated that major Indian banks had slashed house loan rates ahead of the festive season to entice homebuyers.
“This will increase demand for homes in all price ranges, including entry-level, mid-range, and high-end. The stage has already been laid for a resurgence in housing demand. Stable house costs, increased salaries in technology sectors, and a higher urge to own home all contributed to this “he stated