Keshav Mangla, GM Business Development of Forteasia Realty

This important rate cut performs a dual role: allowing households to free up some spending power, as well as stimulating the real estate markets. A borrower with a ₹ 1 crore (loan) will receive a reduction in their EMIs of about ₹ 3,920. The additional ₹ 21,000 per year, will be used or stimulated in some sort discretionary spending. Industry experts are forecasting that buyers will return in droves to key areas: Noida and Mumbai, in particular, since the real estate values there were well above affordability for most people. Fixed-rate borrowers will not receive the benefits of the cut, while there are also no tax benefits available on home loans with the New Tax Regime. Borrowers with credit scores of 750 or more should also negotiate better terms or consider pre-payments like putting ₹ 5 lakh in a pre-payment after 5 years if the initial home loan was for ₹ 50 lakh which would mean that the lenders have to bear ₹ 11 lakh in interest. There is also room for more cuts, in 25 - 50 bps increments and this will be an important step towards making housing finance better to access seeing as the nature of the funding will be primarily through the banks.