With home loan interest rates at its lowest, around 51% of the home buyers are now preferring to have a borrowing period of less than 15 years, revealed the latest Magicbricks Home Loans Consumer Poll.
The poll (sample size 500) suggests that the period of up to 10 years is the most preferred duration of home buyers with 26% of the respondents giving the nod for it. It was followed by 10-15 years (25%) and 15-20 years (23%) as the next most preferred tenures for home loans. About 16% respondents said that they would like to take a loan for more than 25 years, while only 10% said that they would wish to take a home loan for 20-25 years.
Consumer behaviour on Magicbricks Home Loans suggests that most of the demand for home loans is being generated from the key residential markets of Bengaluru, Hyderabad, Delhi, Mumbai, and Pune.
Commenting on the consumer trend, Mr. Sudhir Pai, CEO, Magicbricks, said: “We are witnessing a demand revival for home loans for mid and high range homes due to multiple reasons like need for an extra room due to Work From Home (WFH), reduction in circle rates, stamp duty, and low interest rates. With average home loan interest rates hovering between 6.65%-6.90% borrowers are now want to repay their mortgages as fast as possible. Thus, around 50% of the borrowers now prefer to have a loan tenure of up to 10 years or 10-15 years and close their financial liability as quickly as possible.”
Currently, the home loan interest rates for consumers are the lowest, as witnessed over the last one decade or more with experts suggesting that this is the best time to bargain and negotiate for the best real estate deals. Several public and private banks and other financial institutions have reduced their home loan interest rates, which in turn offers further impetus to the rising consumer appetite in the home buying space. With the Reserve Bank of India keeping the repo rate unchanged at a constant 4% in its recent policy review meeting, many banks are also offering interest rates less than 7% for home loans to further catalyse the rising demand for home buying.
Magicbricks Home Loans enables property seekers avail medium to long term loans to finance their dream home. It offers cheaper, easier, and faster home loans from more than 20 banks. It also allows loan seekers to compare the best available offers and rates, gain online and offline assistance during the application process and also get a wide range of home loans including balance transfers and loan against property.