Home Loan: The Reserve Bank of India (RBI) on Friday announced that it would adjust its risk levels and link the loan-to-value (LTV) rates for new loans by 31 March 2023.
In an effort to make mortgage loans cheaper, the Reserve Bank of India (RBI) on Friday announced it would adjust the risk levels and link loan-to-value (LTV) rates for new loans by March 31, 2023. While Announcing the decision, RBI Governor Shaktikanta Das stated, “The mortgage risk ratios were adjusted in October 2020 only by linking the loan to value (LTV) rates for all new loans approved until March 31, 2022. The importance of the housing sector and its effects on repetition, has been determined to extend the implementation of these guidelines by 31 March, 2023. “https://en.wikipedia.org/wiki/Mortgage_loan
Commenting on the law, Ram Raheja, director at S Raheja Realty, said: “In the real estate industry, the current political crisis is a financial one. Being a tangible asset and a safe haven of investment, people continue to invest in real estate. “
“As home loans can always be cheaper, housing will prove to be a boost. Uncertainty as a whole leads people to return to focusing on basic needs such as open living spaces. With the timing of the loan rules relaxed until March 2023, it will encourage home buyers to step in, leading to more demand, ”he added.
Lender-to-value ratio (LTV) is a financial measure that compares the size of the loan that customers will borrow and the value of the goods that the customer will purchase. Usually, lenders use LTVs to determine how dangerous a loan is and whether they will accept or reject it.https://diurnalnews.com/post/delhi-no-change-in-fare-cabs-go-on-1-day-st/
Repo Rate Unchanged: What It Means To Borrow Home Money
The Reserve Bank of India has retained key lending rates – the repo rate has not changed at the first meeting of the Monetary Policy Committee (MPC) for the 2022-23 financial year. The repo rate remained at 4 percent. So mortgage lenders who pay a simple monthly installment at a variable interest rate, will continue to pay the same interest rate as it currently applies.
“From the point of view of real estate, the unallocated repo rate will continue to provide a boost for home buyers, as mortgage rates are very low. The housing sector saw a resurgence in 2021 and the continuation of lower mortgage lending could improve consumer sentiment, “said Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers.
“Home buyers are in a position to continue lower interest rates on lower interest rates. The cost of living has skyrocketed since the start of the Ukrainian crisis, and the RBI has taken immediate and necessary steps to maintain housing in the country, “said Anuj Puri, chairman – ANAROCK Group.
