Home loans at lower-than-market interest rates
Home loans at lower-than-market interest rates
Leading group-buying real estate portal Groffr.com has tied up with private sector banks to offer bulk consumers home loans that are 0.25-0.75% cheaper than prevailing interest rates.
“We have tied up with ICICI Bank and Indiabulls Home Loans, and a couple of Building Societies Associations (BSA) who generate bulk volume for banks. Negotiations are also on for IDBI Bank and Axis Bank. We are confident these two banks will give us mandate to generate bulk volume at rates that are a little cheaper than prevailing interest rates,” said Sandeep Reddy, Co-founder of Groffr.com.
The process is simple. Customers wanting to buy houses in metros or tier-II, III and IV cities have to log on to this website and submit their interest.
Within 7-10 days, the company generates a large number of customers, which it uses to negotiate better interest rates and other terms with the banks.
Interestingly, within a fortnight of the launch, the company has registered over 500 interested customers.
Groffr.com also plans to a sign similar deal with India’s largest public sector bank the State Bank of India (SBI).
“We approached SBI earlier. But their response was unfavourable due to teaser home loan interest rates. Since teaser rates manage to attract large customers directly, the bank did not want any intermediaries like us. But, the teaser rate arena is over now.
Hence, we will approach SBI once again for considering our proposal,” said Reddy.
The company is currently in talks with a few venture capital players to raise funds for expanding the firm’s operations. According to Vikhyat Srivastava, another Co-founder of the portal, a number of venture capital firms have evinced interest and, at present, a few investors of “Mumbai Angels” are in advanced talks with the company, he added.
The company plans to raise Rs 2-3 crore from venture capital investors.
The concept
All a buyer has to do is find a deal on the website he is interested in and get himself registered as an interested party in that deal. The property bears two prices: the market price and the discounted price Groffr.com offers, called the ‘Groffr Price’. The required number of group members and the last date for registering are also mentioned. Also, the buyers can suggest a deal in the ‘Start Your Group’ section, in which after starting a deal of their own choice, they can combine like-minded people to form a group. On forming a group, Groffr.com’s team steps in and negotiates the best deal with the developers on buyers’ behalf.
Working with a WRS Info India Pvt Ltd.
Question by tpmike2004: Whats happening in todays Mortage & Loan market?
Whats goin on? Why cant buyers get a loan?
Best answer:
Answer by fathead
The credit squeeze caused by the sub-prime blow-up is causing banks to avoiding transacting business with one another. Everyone is afraid of getting stuck with bad paper. Though the fed injected $ 38bn into the market today to free up some cash, the problem is bigger than this type of fix and credit will probably difficult to obtain for the next few weeks to months. Even when people can get credit they will find that it is very expensive; rates are up as a result of the squeeze and fear in the financials. If they need a Jumbo they may pay upwards of 8%!
Give your answer to this question below!
Categories: Loan Market Tags: home, interest, Loans, lowerthanmarket, Rates
What You Need to Know About Low Interest Loans
What You Need to Know About Low Interest Loans
The main gauge of the attractiveness of a loan is the interest rate that the lender will charge the borrower. The interest payment is what the borrower pays as the cost of using the lender’s money to pay for what he needs. Lending companies want to invest their money with optimal profits while borrowers who are in need for cash would find his way to get the amount he needs but would also want to minimize the expenses on loan interest as much as possible. The lower the interest rates are, the more attractive they are to borrowers but may not be as attractive to investors. Understandably, if lenders will have their way, they will be hesitant to give low interest loan while the borrowers would be delighted to see interest rates going to their lows.
Interest rates are moving up and down from time to time. These movements are determined by the prevailing loans market condition. It will be affected mainly by the availability of lenders and the demand of borrowers for loans at any given period of time. If there is abundance of lenders’ money in the market, the interest rates would fall in order to attract more borrowers that will make investor’s money roll, otherwise, if there will not be enough demands for loans, these investors’ money will just sleep in the vault. On the other hand, scarcity of lenders and high demand for loans will cause the interest rates to rise making the credit market attractive to investors enticing them to put in more money to meet the over-demand of loans. Governments have their regulatory boards to influence and regulate the interest rates so that it will not go beyond unreasonable levels.
This is true to the general credit market, this is also true to a single financial institution. When a lending company has surplus money intended for loans, it will offer low interest loan to be more competitive and entice borrowers to get their loans from this lender. Inversely, when there is scarcity of funds and people are scampering to get loans, the lending company may consider raise the interest rates to levels that people are willing pay just to be able to get their share of the scarce resources. Going beyond what is reasonable may lose the competitiveness of the company and people will start finding another lender who can offer low interest loans.
Because of competition in the market and considering the current economic environment, it is not difficult for borrowers to find low interest loan. The borrowers must exercise caution in looking for low interest loan because some lenders have their way of hiding from the prospective borrowers some costs that they will be made to pay for the loan. This would make some low interest loan more costly in the long run. When comparing low interest loans, borrowers must look into how much will be the monthly repayments they have to make for certain term of loan and compare it with the other offers for the same term of loan. Lower monthly repayments for a long-term loan could be more costly than paying higher monthly repayments for a short-term loan. Borrowers beware.
Lam Bong is an Author living in Sydney, Australia. He is interested in reading and creating websites. His latest website is about laser eye surgery Melbourne and Melbourne laser eye surgery on the web today.
Question by Joe: How soon after a bankruptcy, with today’s market can I expect to be able to qualify for a home loan?
I declared BK and it was recently discharged (2 months ago). How soon can I get a loan for a new home?
Best answer:
Answer by annazzz1966
You’d have to wait a minimum of 2 years before you can attempt to buy another home using a home loan. Be prepared to go for conventional financing, too, with 20% down at that time. Start saving now for your down and closing costs.
The only way around this waiting period is if you are able to buy with 100% cash.
Give your answer to this question below!
Categories: Loan Market Tags: About, interest, Know, Loans, low interest loan, low interest loans, Need, web
Bank of Canada Raises Interest Rate ? How Does This Affect You?
Bank of Canada Raises Interest Rate ? How Does This Affect You?
The Bank of Canada raised its interest rate 25 basis points to 0.75 per cent. Many of Canada’s commercial banks followed suit by raising their prime lending rates.
This even after the BOC acknowledged the economy is weaker than initially believed. Of course the BOC’s statement went on to highlight how a “greater emphasis” on budget cutting among governments and households would slow the pace of the global recovery.
Let’s face it, at least in Ontario; the cost of living has gone through the roof especially with the recent implementation of the Harmonized Sales Tax that was recently imposed by the Ontario Provincial Government. It’s hard not to think about reducing spending and tightening ones budget under these circumstances.
What can a home owner do when the result of the BOC announcement is that at least three of the big chartered banks matched the BOC’s move, increasing their prime rate by 25 basis points to 2.75 per cent? If you have a variable rate mortgage you may be thinking that it might be time to lock in.
]]>
Each time a new tax or fee is introduced or mortgage rates go up Canadian families feel it big time. Here are three ways that you can balance your budget and find new cash flow to offset the ever increasing cost to live in Ontario:
Tighten your budget. While economists think that this hurts the economy, it makes great sense for a Canadian family trying to make ends meet. Try buying generic versions of over the counter medications and other generic products sold in the grocery store or pharmacy. Little thing like this can make an immediate difference to your bottom line.
Consider consolidating credit card debt. If you have accumulated so much credit card debt that you are making only minimum monthly payments, it may be time to consolidate. You can do this by obtaining a low rate line of credit from your bank or by refinancing your mortgage.
Pay off your debt. Remember that any debt you are carrying is subject to interest. You pay the interest on this debt each and every month. Depending on the amount of debt you are in this interest could total from hundreds to thousands of dollar per/month. We always recommend that you make paying off debt a first priority. As your debts are paid off you will see increased cash flow because you won’t be making those interest payments.
For more information about your finances visit http://www.trueassess.com
Assure Assess Corp. is the leading provider of services to law firms, accounting firms, trustees, financial institutions, government and some private enterprise.
Assure Assess has a presence both in Canada and the US and has three primary divisions: Communications, Financial Services and Technology Solutions.
Question by sweetie pie: Which of the following is classified as an asset for a commercial bank customer?
a. deposits with the federal reserve
b. a car loan
c. demand deposits
d. a commercial loan
I think it is c.
please advise
Best answer:
Answer by Bill N
As long as you mean a customer of a commercial bank, then yes, c is the only one that is an asset. B and D would both be liabilities on the customer’s books, and A wouldn’t apply to the customer.
Add your own answer in the comments!
Categories: Commercial Bank Tags: Affect, Bank, bank of canada raises interest rate, Canada, Debt, harmonized sales tax, interest, Raises, Rate, this, variable rate mortgage
