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- Will recent rise in home loan rates be continued?
But my question is whether the trend will remain upward only as I read in an article. The article stated on the phase of low home loan interest rates during past decade and analyzed the recent rise in home loan rates to be a continuing trend for the coming years.
And which type of interest rates will be safer to opt for considering the current and coming trend in home loan rates in India - flat or floating?CommentQuote0Flag
- Linked to the Money market
Home Loan interest rates depend a lot on the economic scenario in a macro economy. As things are looking up in all sectors of the Indian Economy, credit offtake is on the rise. At the same time, cost of capital accquistion has also shot up. Banks and HFC's are operating on wafer thin margins, but make money on the large spread of home loans and big turnovers.
Currently it will make sense to stick to a fixed rate if it comes to you at 11%. Or else stcik to floating rate and rejig your loan in case the floating comes down to 9% levels and Fixed rates are around 10.5%
But as i said earlier, there is really no such thing as Fixed Rate. The Fixed Rate is linked to the PLR of the Bank, which can be benchmarked higher or lower.CommentQuote0Flag