RBI’s recent announcement will help you reduce your Home Loan down-payment

Updated on December 5, 20182 mins read
RBI announcement

The FM did not provide any direct benefits for home-buyers in the Union Budget 2015. However, post the budget, RBI made an announcement which shall make many of them happy. In the recent pronouncement, RBI decreed that for home loans of upto Rs. 10 lakhs, borrowers can include Stamp Duty and Registration and other documentation charges in the Loan Value (cost of the housing property).  This move is intended to provide a positive thrust to aspiring home-buyers.

How does this impact you?

If you wish to take a home loan of Rs. 10 lakhs or less, you need not pay the Stamp Duty and Registration charges from your pocket anymore; you can get it financed. The documentation charges shall be added to the cost of the property and you shall get upto 90 per cent of this increased amount as a loan. These charges can amount to around 15 per cent of the value of the property. Hence, being able to include them in the loan amount will help you reduce your initial down-payment and reduce your burden considerably.

Does this change apply to all Home Loans?

Since this change has been announced by RBI, all banks will adhere to it. Housing Finance companies like HDFC Ltd. LIC Housing Finance, IndiaBulls Housing Finance, Repco Home Finance etc. however are not bound by this change. So if you have a loan from a housing finance companies, you need to wait for NHB (National Housing Board which is their governing body) to issue a similar notification.

RBI also recently announced a Repo rate cut of 25 bps. It is expected that most banks shall as a result, cut their lending rates towards the end of March 2015 or by April 2015.  So if you have been considering taking a home loan to buy your dream house, you shall soon be able to get a good deal on it soon.

 Cheers to a healthy, financially-stable and comfortable life!


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