Canara Bank cuts rate on new housing loans by 0.50%

Canara Bank on Wednesday announced a 0.50 per cent cut in floating interest rates on home loans, indicating easing cost of funds that prompted segment leader HDFC too to rollback rates last week. Other banks should follow by the end of month or early November after Reserve Bank review’s it policy by the end of month.
 

The reduction in rates is applicable across tenors and slaps and would come into effect from Thursday.The rate of interest for fresh housing loans up to Rs 20 lakh for repayment periods up to five years is 10.25 per cent, five years to 10 years 10.50 per cent and 10 years to 20 years is 10.75 per cent, the release said.

The rate for fresh housing loans above Rs 20 lakh for repayment periods up to five years is 10.50 per cent, five years to 10 years 10.75 per cent and 10 years to 20 years 11 per cent.Canara Bank also said it had reduced processing charges by 50 per cent up to December 12 this year. There was no change in fixed interest rates.

Bottomline, with Interest rates softening a bit, one can only expect an increased home buying activity only resulting in further per sq feet hike by first quarter of 2008. If you are planning for buying an apartment this is the best time.

 

 
 

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