India Mortgage Market

India Mortgage Market is one of the largest division in the banking financial services and insurance sector in India. The India Mortgage Market was previously known as the Indian housing finance industry. At present the total worth of the India Mortgage Market is nearly US $ 18 billion. The gross domestic product to mortgage ratio in India is very low in comparison to other developed countries. The ratio in the foreign countries ranges from 25% to 60% whereas in India the ratio is 2.5%. The India Mortgage Market is showing fast growth in the past few years. The foremost players in this sector are the finance corporation but presently the commercial banks are also started playing an important role in the development and growth of the India Mortgage Market. At present the market leader in the India mortgage market is the Housing Development Finance Corporation (HDFC), with the State Bank of India (SBI) following the lead.

Objectives of the India Mortgage Market

• To provide the best customer services
• To focus on cost management and gains
• To put emphasize on the quality of credit

The services offered by the Indian Mortgage Market

• Debt consolidation service
• New home loans
• Home equity loans
• Mortgage refinancing
• Real estate lending
• Latest mortgage quotes

Home Loan disbursement in the India Mortgage Market

• The period (1999-2000) housing finance corporation disbursed loans worth ` 9812.03 crores and banks ` 9911.35 crores
• The period (2000-2001) housing finance corporation disbursed loans worth ` 12637.85 crores and banks ` 9787.24 crores
• The period (2001-2002) housing finance corporation disbursed loans worth ` 14614.44 crores and banks ` 14744.85 crores
• The period (2002-2003) housing finance corporation disbursed loans worth ` 17832.17 crores and banks ` 33840.53 crores

Refinancing scheme offered by the India Mortgage Market

Refinancing scheme allows the customers to takeout a second mortgage in order to repay the first mortgage. This also provides the customer with the advantage of low interest rates. The benefits of refinancing are

• Reduction in the sum of the monthly payments of the customer
• Reduction in the total sum of interest customer pays throughout his life for his loan
• Reduction in the term period of the loans so the customer may payoff their loan faster

Refinancing options offered by the India Mortgage Market

• To change the type of loan which adjusts the rate of interest
• To have the option of rolling of closing costs in the loans which allow the customers to refinance the loan with zero or minimum cash To understand all the possibilities before the consideration of refinancing as the Citi Mortgage a wide range of flexible refinance schemes.
• required at the time of closing
• To understand all the possibilities before the consideration of refinancing as the India Mortgage Market offers wide range of flexible refinance schemes.

Last Updated on 5/26/2011