HDFC not to raise home loan rates

HDFC won't raise home loan rates for now despite an "upward pressure" in cost of funds.

Mortgage lender Housing Development Finance Corporation Ltd won't raise home loan rates for now despite an "upward pressure" in cost of funds, Chairman Deepak Parekh said on Thursday.

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He also said he expected a 10-20 per cent fall in property prices in three to six months and demand for home loans easing.

"As property prices have peaked, demand for loans will slow down," he told reporters.

Despite this, he expected HDFC's housing loans to rise 25-30 per cent in 2006/07.