With home loan interest rates at its lowest, around 51 percent of the home buyers are now preferring to have a borrowing period of less than 15 years, a Magicbricks Home Loans Consumer Poll revealed.
The poll (sample size 500) suggests that the period of up to 10 years is the most preferred duration of home buyers with 26 percent of the respondents giving the nod for it.
It was followed by 10-15 years (25 percent) and 15-20 years (23 percent) as the next most preferred tenures for home loans. About 16 percent respondents said that they would like to take a loan for more than 25 years, while only 10 percent said that they would wish to take a home loan for 20-25 years, it said.
Consumer behaviour on Magicbricks Home Loans suggests that most of the demand for home loans is being generated from the key residential markets of Bengaluru, Hyderabad, Delhi, Mumbai, and Pune.
“We are witnessing a demand revival for home loans for mid and high range homes due to multiple reasons like need for an extra room due to Work From Home (WFH), reduction in circle rates, stamp duty, and low interest rates," said Sudhir Pai, CEO, Magicbricks.
With average home loan interest rates hovering between 6.65 percent-6.90 percent borrowers now want to repay their mortgages as fast as possible. Thus, around 50 percent of the borrowers now prefer to have a loan tenure of up to 10 years or 10-15 years and close their financial liability as quickly as possible, he said.
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