With the start of the holiday season, several banks across the country have reduced their mortgage rates to make housing affordable for everyone. The last to join is HDFC. “As part of this special offer, customers can qualify for the HDFC home loan from 6.70% starting September 20, 2021,” the mortgage lender said in a statement.

Last week, the country’s leading lender launched a bunch of festive offers for mortgage customers. Like SBI’s HDFC home loan offer, it will apply to all new loan applications, regardless of loan amount or job category. The special rate is linked to the borrower’s credit rating of 800 and above.

Before this special offer, the rate for salaried customers for higher credits ??75 lakh and a credit score of 800 and above was 7.15 percent and for the self-employed 7.30 percent.

Thus, the effective reductions for these customers could go up to 45 bps for employees and up to 60 bps for the self-employed.

It is a closed program and will be valid until October 31, 2021, the lender said.

“Housing is much more affordable today than it has ever been before. Over the past two years, house prices have more or less stayed the same in major pockets of the country as income levels have increased. Record interest rates, PMAY subsidies, and tax breaks have also helped. “Said Renu Sud Karnad, Managing Director of HDFC Ltd.

6.7% SBI real estate loans

In a one-of-a-kind initiative, SBI offers home loans tied to credit score at just 6.70% regardless of the loan amount. Previously, a borrower with a loan greater than ??75 lakh, had to pay an interest rate of 7.15%. With the introduction of festive offers, a borrower can now qualify for a home loan for any amount at a rate as low as 6.70%. The offer translates into a saving of 45 basis points, which translates into a huge interest savings of over ??8 lakh, for one ??Loan of 75 lakh with a term of 30 years.

SBI has removed this distinction between a salaried borrower and a non-salaried borrower. The interest rate applicable to a self-employed borrower was 15 basis points higher than the interest rate applicable to a salaried borrower. From now on, no interest premium linked to occupancy is charged to potential borrowers of mortgage loans. This would lead to a new interest saving of 15 basis points for non-salaried borrowers.

“This time, we have made the offers more inclusive and the offers are accessible to all segments of borrowers regardless of the amount of the loan and the profession of the borrower. The 6.70% mortgage offer is also applicable to cases of balance transfer. We believe that zero processing fees and concessional interest rates during the holiday season will make homeownership more affordable, ”said CS Setty, Managing Director (Retail & Digital Banking), SBI.

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