Why it may be the best time to buy your dream house | Economic Times

Mumbai: Is this the right time to buy a house or apartment? Banks and non-bank finance companies are on a rate-cutting spree and want you to believe that.Home loan rates in India are at a 15-year low and banks and mortgage lenders are wooing home buyers, asking them to shed their risk aversion and buy their dream homes.Kotak Mahindra Bank cut home loan rates twice in a month to a historic low level of 6.75%, applicable from November 1.“Home Loan at 6.75%! Covid has made our home the centre of life. Lower prices, lower stamp duty, low interest rates could support home values going forward, like old times,” tweeted Uday Kotak, MD of Kotak Mahindra Bank.Housing Development and Finance Corporation (HDFC), India’s largest home financier, recorded its second-highest monthly disbursements ever in October.79031405“This is the best time for anyone to buy a house. Interest rates are as low as they can get — it is very unlikely that there will be further reduction in interest rates. Reduction in stamp duty rates has also augured well and many developers are giving discounts on property prices. Given all of that, it is the best time,” said Keki Mistry, CEO of HDFC.Indian banks reduced home loan rates by as much as 150 to 200 basis points in the last year alone. One basis point is one-hundredth of a percentage point. The reduction has been steeper this year, with the Reserve Bank of India cutting the benchmark repo rate by as much as 115 basis points and most banks linking their interest rates with the repo rate.With the festive season in full swing, most top banks are offering concessionary rates on home loans along with a waiver of processing fees to lure home buyers.