home equity loan rates.

Last 2-3 years have seen a boom in real estate.
Home equity loan rates fell from above 12% to nearly 7%.
Everybody set out to buy their dream house.
This increased the customer base of banks as well.
Moreover the hoam loan gets exemption form tax. Hence profit for both the banks as well as the customers.

But since 6-7 months, the banks have started increasing the home equity loan rates.
It has gone above 8.5%.

What i have noticed is that whenever there is a talk of hike in loan rate, HDFC is first bank to increase it. Others playes like ICICI, PNB etc. play a wait and watch game. Even if they increase, it is usually after a month or two. The customers these banks get a grace period of 1-2 months. HDFC'c customers are the sufferers.

There are a few new players like ABN ambro, Standard Chartered who usually give loan at a discounted rates as they want to establish themselves.

SBI has a unique option of providing home loans for not only building the home but also the furniture. I have heard that it provides loan for home remodeling as well (but i am not sure).

Hope this piece of information helps you in selecting that bank for home loan that enables you to build your DREAM HOUSE.