Currently,the state government is providing an additional 0.33 FSI floor space index to real estate developers in the suburbs for a premium,which can reduce prices for buyers. Also,the festive season is currently on and a lot of builders are offering freebies with their sale and if you are part of a group buying deal,it can fetch you double discounts. While you can wait for home loan rates to fall,dont do so at the cost of a good deal. Price correction is likely as demand has been sluggish but this will vary with individual projects.

I took a home loan of Rs 30 lakh in Dec 2010. The interest rate then was 9.5 per cent but has now climbed to 11.5 per cent. The EMI has increased by nearly Rs 4,500. If the interest rates fall next year to 9.5 per cent again,will I be able to go back to my original interest rate and EMI?

Manish Rai,New Delhi

If you have taken a home loan from a housing finance company,there is definitely hope for your reversal of interest rates. Recently the National Housing Board has come up with a regulation that HFCs will need to waiver prepayment penalty and also offer the same interest rate for the existing borrower and the new borrower. With the borrower free to shift the loan with no penalty,it would be in the mutual interest of the borrower and the HFC to implement this rule.

I have heard that banks hold auctions for foreclosure of properties? Where can I get information regarding these auctions and how will it benefit me?

Dineshwar Jha,Chandigarh

Foreclosure properties will be valued at 20 per cent lesser than the ongoing market price of the property,post valuation. By opting to purchase such a property you will be in a position to obtain a good bargain price. Usually banks advertise the details of the auction in local dailies. Also,a scheduled auction by any bank across India is tracked by http://www.foreclosureindia.com/ which has been set up to cater to this information gap.

The expert is CEO,Bankbazaar.com
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