Housing finance sector in India has a huge market with the consistently rising population. It is a 9.3 trillion market after all. Housing finance sector has been growing at the rate of 19% CAGR for past three years. This segment has been segregated into two primary sections; banks and housing finance companies in India . But, it is a vast sector as several government bodies and private players are pulling their weight in this sector. Most investors and home loan borrowers tend to know more about a specific housing finance organization. Very few are aware of the sector in general. But, this information remains useful because industry affects the individual players and their choices. So, what do you need to know as an investor or a borrower?

Floating interest rates are on the rising

This trend has been gaining traction over a period of time. It will continue to remain popular as it allows men and women to buy a bigger house or repay the house loan over a smaller period of time. Though, fixed home loan rate has its merits, it does have a higher rate of interest. Additionally, you can prepay the house loan with floating interest rate more easily because it does not have any prepayment charges. So, it continues to remain a popular choice. However, do not make it your obvious choice. Give it a due thought and select housing loan package accurately.

Witness the infrastructure development across the country

For a long time, the major chunks of real estate, in terms of residential and commercial buildings, were in the major metros. However, the situation has changed and allowed the expansion to continue in tier-2 and tier-3 cities of India. This trend will continue offer some of the best facilities to the investors as well as borrowers to buy affordable housing in these cities. You can invest in the companies with an ongoing project in small cities confidently. You can buy their properties for residential or commercial purposes confidently too. Housing loans will be very easily available in India for these kinds of properties.

There are several other trends in the current market. For example, a way to identify right applicants through sustained focus on credit risk mitigation measures. It will help the housing finance companies focus on right assets too. So, there is also a huge improvement in home loan processing with rise of technological avenues. You can use such information beneficially so make smart long-term choices as a borrower or an investor.