With the latest policy of Rbi which announced key rates to be cut by .50 basis point, the home loan interest rates are likely to fall. IDBI bank reduced its interest rate by .25 basis point which will come in effect from April 20 th. Other Banks like Hdfc are expected to lower there rates in next two- three days.
Home Loans rates for new Customers:
We have seen that as soon as some action is taken by Rbi to ease liquidity, Banks come out by lowering rates for new customers. We believe the bank product heads must be working overtime now to come out with best schemes to lure customers. The new home loan customers can expect .50 basis reduction in rates ie saving Rs 60 per lac emi.
Home loan rates for Old customers:
Banks usually takes time to reduce rates for existing customers .Such moves hit Banks net margins and they delay lowering of rates immediately. For the customer the news of Home loans getting cheaper remain as a news but emi gets reduced to not to an extent of what they expect. To tackle this the agencies governing Housing companies and the Bank have come out with guidelines with no prepayment charges. Most of the housing finance companies have taken away away prepayment charges and now Banks will have to follow Rbi circular. Now for existing customers, this is a big relief, If your Bank doesn’t reduce your home loan emi whenever there are market conditions, He can switch his home loan to another bank which is giving lower rate to new customers.
To check, how much you can save on transferring your existing loan to another bank- check out our home loan balance transfer calculator.
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