Everyone who's working or searching a job or a housewife, husband,Mom,Dad,Bro,Sis , I and who doesn't want to have a home and live a lovely life- a secured one.Until recession struck economy badly, selecting a home loan was child's play. This was because Floating rates were a few percentage points below the fixed rates.This was an attracting offer for the borrowers.But now if you are looking for a new home? Get ready to sweat it out when you apply for a loan.Home loans are getting more and more difficult to come by as some of the biggest players in the market tighten their mortgage norms.
Inflation--The spiraling inflation and rising property prices have plunged the prospective borrowers in a dilemma. Moreover it is seen that there is a continuous increase in the interest rates on home loans.Today if you or anyone for that matter wants to go for a home loan, you think twice that is it the right time or it would be preferrable to wait for another 2-3 months;as the fixed rates are currently high - to the tune of 13 to 14 percent.Inflation has added the remaining fuel to fire. RBI recently increased the cash reserve ratio (CRR) and the repo rate by 0.5 percent. Leading banks were quick to pass on the burden of hike to borrowers .Banks are in consultations with the government and the Reserve Bank of India to revise eligibility criteria for disbursing home loans. Currently, the cap is calculated based on one’s capacity to pay the equated monthly instalment (EMI) and other criteria.
In recent times, banks and institutions have tightened norms for some industries like call centres, IT professionals and investment bankers. Chidambaram said housing is an important sector and a major driver of the economy. "Steel, cement, bricks, pipes, wires, electrical equipment, construction, labour everything depends on housing," he added.So we can expect for certain cuts in the interest rates and a review of the eligibility criteria can help many to turn their dreams into reality--- "My Home"
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