The recent announcement of tariffs on India by U.S. President Donald Trump has created quite a buzz in the country. Along with rising anxiety among tradesmen and manufacturing firms, there is also concern about the overall economy.
With the world being more interconnected than before, any policy change doesn’t just affect trade but has a ripple effect. For people looking to buy property in Thane or in other parts of Mumbai, these tariffs can have an effect on EMI in the long run.
Here, we take a look at how international tariffs can influence home loan interest rates in India.
How Global Tariffs Affect Interest Rates
When the US or other major economies impose tariffs, the cost of goods rises. This can lead to inflation, which puts pressure on India to increase interest rates. If the RBI chooses to raise the repo rate, banks will pass on the cost to the customer. This leads to a higher interest on the home loan which means a higher EMI.
For buyers considering an under construction flat in Thane, rising rates could increase the cost of borrowing over the next year or two.
What This Means for Potential Homebuyers?
The most important things is not to panic. In an attempt to cushion the blow to Indian consumers, The Reserve Bank of India has kept its repo rate unchanged at 5.5%. This means that currently, homebuyers and real estate developers do not need to worry about inflation immediately.
For people looking to secure their budget homes in Thane or book a 1 BHK under 50 lakhs in Thane, here are some practical tips that can help.
Secure a lower Interest Rate
Even slight differences in interest rates can save lakhs over the years. If you are looking to buy a home soon, reach out to your bank and secure a pre-approved loan.
Look for Plans by Builders
Many developers in Thane offer no-pre-EMI options or other financial benefits which reduce the burden until possession.
Focus on Projects with Good Connectivity
Ghodbunder Road, Kapurbawdi, and Thane West areas are benefiting from metro work and road widening. These projects hold value even if rates rise later.
Set a Budget with a Buffer
If you are considering a 1 BHK under 50 lakhs in Thane, plan for a small buffer in case your interest rate increases slightly in the next 12 months.
Consider Near-Completion Projects
If you are worried about future rate hikes, look at new flats in Than that are almost ready-to-move in. This allows you to purchase your dream home at the current price and avoid the possible cost of higher interest rates.
Conclusion
As a buyer, staying informed about these links helps you make better financial decisions. Whether you are a first-time homebuyer looking for 1 BHK under 50 lakhs in Thane or considering flats for sale in Thane West, don’t panic, but also don’t delay.
Reach out to a trusted developer like Ace Realty and look for steady interest rates that can help you hedge future inflation.
