Happy Early Diwali to all property buyers

Apparently you can pre pone Diwali by bursting the biggest cracker that a home buyer wants to hear explode - the interest rate. This time the Reserve Bank of India (RBI) has done exactly that by bringing the repo rate down to 6.7 per cent from 7.25 per cent.  This move in all likelihood will affect the bank interest rates and EMIs as most likely the banks would pass on these benefits to the home loan seekers.

Most peoples do understand that home loan interest rates are linked to base rates and any reduction in the same would in all probability give an advantage to the home loan borrower as the banks would decrease their lending rates. It means there would be a huge relief for the buyers of properties in this season and this is expected to act as a huge boost for the sagging real estate sales that is currently being faced by the property industry in Mumbai as well as other cities and towns in India.

The home loan rate as of today varies in a range of 9.75-10.25% and this move is a big relief to a lot of other people apart from the actual buyers. The real estate developers, property marketing agents, home loan advisors and the banks themselves who have seen the amount of home loans being  absorbed by the market decreasing every year for some time now. The rates have been now brought down to a four-year low and the consumers could not have asked for a better Diwali present.

A surprise Element

Most of the real estate professionals including the leading brokerage houses, real estate developers, property agents, home loan agents and other financial institutions have applauded this very strong move by the RBI governor.

There was an air of expectation from the Governor but it was a modest 25 basis points cut but by delivering a jaw dropping 50 basis points reduction, the RBI has indeed lifted the spirits of the average consumer and the overall real estate industry in India.