Home loan repayment: Opting for longer tenure? Here's what it could mean for mortgage borrowers
2 years, 2 months ago

Home loan repayment: Opting for longer tenure? Here's what it could mean for mortgage borrowers

Firstpost  

According to BankBazaar’s analysis, buyers who took a home loan of Rs 50 lakh for a tenure of 20 years at 7 percent in the past two years have seen the rate increase to 8.9 percent Home loan borrowers have been in a dilemma these past few months. The 190-basis point repo rate hike by the Reserve Bank of India since May has forced them to choose between paying higher equated monthly installments to repay their loan in the given period or to opt for lower payments but continue paying installments for a longer duration. According to BankBazaar’s analysis, buyers who took a home loan of Rs 50 lakh for a tenure of 20 years at 7 percent in the past two years have seen the rate increase to 8.9 percent. A senior banker told Mint that the frequent repo changes in the past few months had seen many lenders not seeking the consent of borrowers on whether they wanted higher interest payments or longer tenure.

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History of this topic

Smart Ways To Reduce Home Loan EMI Burden When Interest Rates Increase
1 year, 10 months ago

Smart Ways To Reduce Home Loan EMI Burden When Interest Rates Increase

News 18  

The Reserve Bank of India recently announced an increase of repo rate by 25 basis points to 6.5 %. Home loans offer flexible repayment options, including fixed or floating interest rates, tenure, and repayment options, which can be tailored to meet the needs of individual borrowers. Opt for home loan with overdraft facility: Though interest rate for such EMI would …

Home Loan EMIs: A 150-250 bps Hike In Interest Rates Leads To Installments Go Up By 8-21%
2 years, 1 month ago

Home Loan EMIs: A 150-250 bps Hike In Interest Rates Leads To Installments Go Up By 8-21%

News 18  

An increase of 150-250 basis points in interest rates may lead to EMIs going up by 12-21 per cent in the case of prime home loans and 8-13 per cent in the case of affordable home loans while maintaining the original tenure, according to a report by rating agency ICRA. In the case of affordable home loans, the extension of …

Home Loan Interest to Increase: Higher EMI or Prepayment, How to Minimise Rising Cost
2 years, 4 months ago

Home Loan Interest to Increase: Higher EMI or Prepayment, How to Minimise Rising Cost

News 18  

The Reserve Bank of India has recently increased the repo rate by 50 basis points to tame rising inflation in the country. Loan Interest Rates to Increase; Borrowers to Feel the Pinch “Home loans and other retail loans linked to repo rates would witness the quickest transmission of policy rate hikes. The exact date of transmission of the increased policy …

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