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If you have taken a loan from the bank to buy a house or are thinking of buying a new house, then there is a great news for you. The Reserve Bank of India (RBI) has taken a decision in its latest monetary policy which has brought a sigh of relief to both home loan customers and the real estate sector. The central bank has increased the repo rate for the third consecutive time. 5.25 percent But it has been maintained. This simply means that your loan is not going to be expensive at the moment and there will be no increase in your EMI.

Why was this decision necessary for the market?

Market experts are considering this step of RBI as a ‘balanced’ decision. The ongoing turmoil around the world, fluctuations in crude oil prices and inflationary pressure have not completely ended yet. Keeping interest rates stable in such a challenging environment is a sign of stability for the economy. Buying a home is a big decision that depends on your future income and ability to pay EMIs. Buyers’ confidence will remain intact due to non-increase in rates.

What benefits will real estate and homebuyers get?

Real estate sector veterans say that with no change in the repo rate, home loan interest rates will remain stable. This will not only provide relief to old customers, but new home buyers will also be able to come forward without any hesitation. Experts are hopeful that with this, the demand for houses in the middle and premium housing segment will remain strong, because now buyers are more clear about their monthly EMIs.

Experts’ Opinion: Stability is the real key

Vimal Nadar, research head of Colliers India, has called it a ‘wait and watch’ policy. At the same time, this is an opportunity for developers to implement their plans in a better way. Amidst geopolitical tension and rising prices of goods, RBI thought it better not to take any risk at the moment. Square Yards CFO Piyush Bothra and CREDAI President Shekhar G Patel have also called it a wise step, which will help in maintaining demand in the market. Also, officials of Ganga Realty and Trehan Group consider this as a positive signal for long-term investment.

What do the inflation and growth figures say?

RBI has increased the inflation rate in this financial year 4.6 percent and GDP growth 6.9 percent Estimated to stay. This means that the central bank is maintaining a balance between the country’s growth and rising prices. The real estate sector has full hope that due to no increase in interest rates, the sale of houses will increase and it will remain easy for the common man to take home loan.

Overall, this decision of RBI has stopped your EMI from increasing for the time being. However, customers should also understand that there is little hope for an immediate reduction in EMIs as of now, as the rates have only been kept constant and not reduced. Further relief will depend on how quickly banks pass on the benefits of this decision to customers.