Home loan rates for buyers has been reduced
HFC Bank made a reduction to its home loan rate which was announced by the bank's retail banking manager Tony Ram earlier this week.
The bank had reduced its home loan rates from 7.5 per cent variable rate to 6.99 per cent. This was due to the bank's steady growth in the current market condition.
"Our home loan package is still very attractive because reducing our variable rate to 6.99 per cent we have a fixed rate of 4.5 which is quite low," Mr Ram said.
"In fact 4.25 per cent for those under the RBF scheme that's 4.25 per cent fix for five years.
"We still remain the only bank to fund home loans with a minimum of 10 per cent equity."
He said the idea behind it was to make home loan more affordable and more accessible to people.
"The reduction in interest rate is part of our ongoing review of our home loan product and we constantly review our offerings to ensure that it's in line with the market needs," he said.
"We also now consolidate debts with your home loans like if you have a car or small personal loans you can consolidate that into your home loan so you have one payment and it's flexible as well."
He said HFC Bank would like to be first bank that looks into the reduction of interest rates.
"There is no better way to do it than with your home loan product," he said.
"There has been a great demand for home loan products. If you look at our home loan portfolio it is increasing."
Mr Ram said a fixed rate for 12 months was 4.5 per cent which was very competitive in market, as this could actually assist customers to buy a house with ease and really help with budgeting.
Benefits
Variable rate – 6.99 per cent (reduced from 7.5 per cent to stay competitive in market) a) While having one year fixed, it would assist customer to settle. At the same time a low variable rate would bring about more flexibility in their repayment throughout their entire loan period. Lowest Equity of 10 per cent Cash and/or; a) FNPF Housing Eligibility amount and/ or; b) The surplus offered as security value and/ or
Insurance can be built in repayments for ease of customer
In house valuation to fast-track valuation needs Legal costs can be added to the loan Consolidation of all other loan debts with mortgage.