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Tag: Home loans

  • Are tax sops sufficient to make actual property investments interesting?

    Most homebuyers are actually scrambling to make extra prepayments. Jain, although, determined in opposition to it after doing a little quantity crunching. Jain’s residential property earns him a good-looking 7.36% rental yield. He claims a 30% deduction on this rental revenue. Separately, he also can declare your entire curiosity paid on the house mortgage as deduction (below part 24b) because the property is let loose and isn’t occupied by him. To make certain, deduction on curiosity in a self-occupied property is capped at ₹2 lakh.

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    Graphic: Mint

    After claiming each tax deductions, Jain ’s efficient curiosity paid on the mortgage comes to only 2.9%. “If I put the prepayment quantity in a financial institution fastened deposit (FD), it should earn me 4.5-5%, submit tax-return. That’s greater than the efficient rate of interest I’m paying on the mortgage because of the tax sops. I’ve determined to not make any additional prepayments,” he stated.

    This is the leverage that tax breaks on actual property purchases give property homeowners. “People who purchase property for rental revenue don’t should prepay the mortgage,” said Nishant Batra, chief goal planner, Holistic Prime Wealth, and a mutual fund distributor. To be sure, this may not be suitable for all property owners servicing a home loan. “Some people see loans as a leverage, while others see it as an obligation that they need to get rid of. Those considering it an obligation should close the loan as early as they can,” Nishant added.

    Besides, the advantages of tax breaks on actual property properties aren’t restricted to the choice of whether or not one ought to prepay the mortgage or not. The tax sops provided by the federal government act as subsidies that significantly deliver down the efficient curiosity you pay on the mortgage taken for property buy, making actual property a lovely funding for some folks (see graphic).

    Special therapy

    Real property is the one asset class that enjoys an ordinary deduction of 30% on the rental yield. The 30% normal deduction on rental revenue is given to cowl upkeep and repairs prices borne by the property proprietor. However, the precise prices of upkeep are a lot decrease, so the 30% deduction leads to web financial savings for householders. That’s not all. Homeowners also can declare deduction on curiosity on the house mortgage taken to purchase the asset. Both these tax sops aren’t out there for some other asset class (see graphic). Dividends from shares and curiosity from fastened deposits are each taxable at slab charges, with no deductions allowed.

    So, why does actual property get this particular therapy? “The authorities affords all these tax advantages on actual property because it needs everybody to personal a home,” stated Karan Batra, managing companion, Chartered Club. However, many individuals utilise the tax advantages to spend money on a number of actual property properties, past the first home they dwell in. Nishant identified that it’s a standard apply amongst excessive web price people (HNIs) to go for a mortgage to finance the properties that they purchase for the aim of rental revenue even after they have a surplus to cowl such purchases.

    Even once you dwell in the home that you simply purchase, you’ll be able to deduct as much as ₹2 lakh as mortgage curiosity whereas calculating ‘income from house property’ within the revenue tax return (ITR), below part 24 of the revenue tax Act. While this leads to loss from home property, such loss may be set off in opposition to some other revenue of as much as ₹2 lakh in a yr. The remaining quantity may be carried ahead to as much as eight years. “In your ITR, below ‘income from house property’ head, you’ll be able to declare GAV (Gross Annual Value or hire earned) of the property you reside in as zero and declare the curiosity paid on the mortgage as deduction. This leads to a loss from the home property equal to the curiosity paid, capped at most ₹2 lakh in a yr,” stated Nitesh Buddhadev, founder, Nimit Consultancy.

    For occasion, let’s assume you’re servicing a ₹50 lakh dwelling mortgage taken at 9% rate of interest with a 25-year mortgage tenure. The whole curiosity part within the first yr is ₹4.47 lakh. If you avail ₹2 lakh curiosity as deduction, it can save you tax to the tune of ₹60,000, assuming you’re within the 30% tax bracket. So, as a substitute of ₹4.47 lakh, you simply have to pay ₹3.87 lakh curiosity, which brings down the efficient rate of interest to 7.8%. If the mortgage on the stated property is collectively taken by a husband and spouse, they’ll declare ₹2 lakh deduction every, which implies the efficient curiosity outgo additional comes all the way down to ₹3.27 lakh or 6.5%.

    In the case of rented out properties, the discount in rate of interest extremely will depend on the rental yield, says Nishant.

    “For residential properties the place the yield is 1.5-3%, the web financial savings won’t be a lot. Tax advantages translate into greater financial savings on properties let loose to grade A business tenants because the yield is greater. For residential, the higher choice is that each husband and spouse purchase the property for their very own use on a joint mortgage and declare a complete of ₹4 lakh deduction on the curiosity. Low rental yields could not transfer the needle a lot on rented out properties,” he stated.

    Jain’s is a living proof who has rented out his property for skilled actions and therefore earns a better yield of seven.3%, akin to business rental yields.

    Take observe that solely two properties per particular person are allowed to be handled as self-occupied. Beyond these, the proprietor has to pay tax on hire that accrues from different properties. If the property is vacant, it’s thought-about deemed to be let-out and tax is paid on the notional hire. Notional hire is derived by evaluating normal hire, determined as per the Rent Control Act, municipal hire as determined by the native municipal authority, and honest hire, which is the precise hire being paid on related properties in the identical space. The greater of municipal hire and honest hire is in contrast with the usual hire, and the decrease of those two is the notional hire.

    Retail buyers shouldn’t see these tax advantages as a possibility to direct all their financial savings in buying a number of properties as actual property. As an funding, it lacks liquidity and shopping for property to get rental yields has a number of unquantifiable dangers. For one, letting out property runs the danger of hire default and tenants not vacating the property on time or not vacating it in any respect, which results in extended authorized disputes. More importantly, it’s a must to bear the stamp obligation price of 5-6% every time you purchase a property. You can declare this below part 80C, topic to the ₹1.5 lakh cap, which can normally fall quick.

  • Is it sensible to prepay residence mortgage — defined

    Buying a home is just not merely a lifelong dream but in addition some of the substantial monetary tasks that people undertake. Several householders dream about ending off their mortgages sooner and breaking free from the bonds of debt. 

    Benefits of prepaying residence loans

    Making precept prepayments on your private home mortgage is one wonderful strategy for carrying out this, mentioned Jetaish Gupta, Co-Founder & Director, of Adore Group. 

    When you select to pay common funds each month on your home mortgage, a considerable amount of the primary installments go in direction of curiosity, whereas a lesser portion goes in direction of precept. This dynamic shifts because the mortgage time period progresses, having extra of each installment transferring in direction of the precept. You could, nevertheless, pace up your reimbursement course of and drastically decrease the whole curiosity paid by making extra precept funds.

    Early within the residence mortgage tenure, the curiosity part is greater, really fizzling out over time. “By prepaying, the principal sum is diminished, resulting in diminished curiosity calculations in subsequent months. This technique expedites mortgage reimbursement and minimizes the curiosity burden,” said Amit Gupta, MD, SAG Infotech.

    In cases of floating-rate loans, prepayment is fee-free; yet, fixed-rate loans may incur prepayment charges. This approach, which divides EMIs into lower interest and higher principal portions, aids in interest reduction and swifter principal repayment, added Gupta.

    Prepayment leads to earlier loan completion than anticipated, making it an advantageous but often overlooked option.  Deciding whether to prepay depends on individual financial situations.  As per Amit Gupta, large loan amounts with high rates could warrant prepayment, whereas lower rates with tax benefits might justify retaining the loan.

    “Consider the ease of being free of payments on your mortgage to worry about for a long time. The reduced loan term will provide the homeowner with not just financial independence as well as peace of mind, freeing them to solely concentrate on other essential life goals,” mentioned Subhash Goel, Director of Goel Ganga Developments.

    The prospect of EMI-free months and debt reduction appears fairly tempting, however its viability hinges on particular person circumstances. Funding sources, bonuses, and financial savings should be scrutinized earlier than tapping emergency funds. 

    Meanwhile, the Reserve Bank of India (RBI) has issued detailed tips to reset floating-interest charges on Equated Monthly Instalments (EMI)-based private loans. “Any improve within the EMI/tenure or each on account of this shall be communicated to the borrower instantly via acceptable channels,” RBI mentioned in a launch.

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    Updated: 26 Aug 2023, 02:44 PM IST

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  • Unable to repay mortgage? Legal rights, viable steps that defaulters should know

    Being a defaulter can negatively impression credit score well being, resulting in decrease credit score scores and better rates of interest. Banks ought to deal with default circumstances with empathy and supply personalised options. Defaulter’s authorized rights embody receiving discover, truthful debt assortment practices, grievance redressal, looking for authorized help, and truthful credit score reporting.

    Livemint spoke to consultants concerning an increase within the variety of defaults within the retail mortgage class

    Manavjeet Singh, MD & CEO, CLXNS)

    1)Have RBI tips introduced any sigh of reduction within the hearts of defaulters?

    The RBI tips have positively introduced some reduction to defaulters. They permit defaulters to restructure their loans and make smaller funds, which may also help them get again on their toes financially. The tips additionally present for an extended compensation interval, which might make it simpler for defaulters to handle their debt.

    For instance, as an example you might have a mortgage of 10 lakhs that you’re unable to repay. Under the RBI tips, you might restructure the mortgage so that you simply solely need to pay 5 lakhs now, and the remaining 5 lakhs can be repaid over an extended time period. This might make it a lot simpler so that you can handle your debt and get again on observe financially.

    2) Does being a defaulter impression your credit score well being, how?

    Being a defaulter can have a big impression in your credit score well being. Your credit score rating will seemingly lower, which might make it harder to get authorized for loans sooner or later. You may additionally need to pay larger rates of interest on loans. This is as a result of lenders use your credit score rating to evaluate your danger as a borrower. If you might have a low credit score rating, lenders will see you as a better danger and could also be much less prone to lend to you.

    Let’s say you might have a credit score rating of 750. This is taken into account credit score rating, and you will seemingly be capable of get authorized for loans with comparatively low-interest charges. However, in case your credit score rating drops to 600, you will be thought of a riskier borrower and will need to pay larger rates of interest on loans.

    3) Any recommendation to banks in the case of dealing with default circumstances?

    When it involves dealing with default circumstances, we might advise banks to method the state of affairs with empathy and understanding. It's essential to acknowledge that people might face monetary challenges or unexpected circumstances that result in defaults. Rather than adopting a confrontational method, banks can try to create an open and supportive atmosphere.

    Encouraging open traces of communication and providing personalised options could make a big distinction. By working carefully with defaulters, banks can discover choices similar to versatile compensation plans or debt restructuring, tailor-made to their monetary capabilities. Taking a compassionate method cannot solely facilitate higher debt restoration but in addition assist people regain their monetary stability and rebuild their credit score well being.

    Mayank Khera, Co-Founder & COO, Credgenics

    4) What are essentially the most viable steps that the defaulter ought to comply with?

    When going through a default on a retail mortgage, it’s essential for the defaulter to take speedy motion to handle the state of affairs. Here are some viable steps {that a} defaulter ought to contemplate following:

    ● Assess the Situation:

    ● Communicate with the Lender

    ● Evaluate Financial Situation

    ● Negotiate a Repayment Plan

    ● Seek Professional Assistance

    ● Prioritize Payments

    ● Protect Credit Score

    ● Explore Debt Restructuring or Settlement

    As each state of affairs is exclusive, the steps to handle a retail mortgage default might range primarily based on particular person circumstances and the lender’s insurance policies. It is essential to seek the advice of with the lender and search skilled recommendation to navigate by means of the method successfully.

    5) What are the authorized rights of the defaulters?

    In India, the authorized rights of defaulters are extensively protected by laws and regulatory frameworks. In a latest communication, The Reserve Bank of India (RBI) directed banks and finance firms to undertake compromise settlements or technical write-offs on accounts categorized as wilful defaulters or fraud. This implies {that a} wilful offender or an organization concerned in fraud will now not face prejudice by lenders, on account of felony proceedings in opposition to them. Additionally, debtors who had undergone compromise settlements now have the chance to use for contemporary loans after a minimal cooling interval of at the very least 12 months. It’s value noting that regulated banks and finance firms have the flexibleness to stipulate larger cooling durations in step with their board-approved insurance policies.

    Here are among the authorized rights {that a} defaulter have to be conscious of-

    ● Right to Receive a Notice

    ● Right to Fair Debt Collection Practices

    ● Right to Grievance Redressal

    ● Right to Seek Legal Assistance.

    ● Right to Fair Credit Reporting

    Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint. We advise buyers to verify with licensed consultants earlier than taking any funding selections.

     

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    Updated: 17 Jul 2023, 02:00 PM IST

  • RBI protection: How will your non-public dwelling mortgage EMIs be affected by cost pause or hike?

    In the sooner protection (April 2023), RBI saved the protection repo cost beneath the liquidity adjustment facility (LAF) unchanged at 6.50%. Subsequently, it moreover saved the standing deposit facility (SDF) cost unchanged at 6.25%, whereas the marginal standing facility (MSF) cost and the Bank Rate have been moreover unchanged at 6.75%.

    Prior to this, RBI has hiked the repo cost by 250 bps elements since May remaining 12 months, which had led to a giant soar in banks’ lending and deposit costs. The objective behind this is ready to be that cost hikes usually end in a spike within the value of funds for banks and due to this fact the lenders transfer on the impression to complete debtors.

    RBI’s 3-day monetary protection meeting has begun from Tuesday onward. On June 8, 2023, RBI is nearly actually to determine on one different pause.

    Parag Sharma, Whole-time Director & Chief Financial Officer, of Shriram Finance talked about, “With the customer inflation level at 4.7%, well below RBI’s upper tolerance limit of 6%, the conditions seem favourable for a pause in rate hikes. The latest GDP forecasts also point towards inflation becoming less of a concern.”

    Accordingly, Sharma added, “We expect that the MPC, in its upcoming meeting, will hit the pause button on the policy rate hikes, for the second time running. However, accurately forecasting the potential impact of El Nino on the economy has become the primary concern. Considering our economy’s heavy dependence on farmers and small businesses, we feel that the Government would do well to take steps to mitigate the adverse effects of El Nino.”

    Also, in response to a Refinitiv poll, all 64 economists rely on no change to the 6.50% repo cost on the conclusion of the RBI’s June 6-8 meeting.

    Brokerage Reliance Securities moreover believes that RBI would possibly maintain cost unchanged at 6.5% on June 8 and the monetary establishment would possibly wait to see the monetary impression of a group of hikes over the earlier 12 months.

    Similarly, Shishir Baijal- Chairman and Managing Director, Knight Frank India talked about, “In its upcoming MPC meeting, we expect the RBI to keep the repo rate unchanged at 6.5%, continuing with a pause, as inflation, supported by statistical base has moderated, and will likely remain so. This provides enough support for the RBI to keep its key policy rate unchanged.”

    In April 2023, CPI inflation eased to 4.7% which is the second consecutive month the place this monetary indicator has stayed underneath RBI’s larger tolerance limit of 6%. Inflation has been above RBI’s larger tolerance objective from January 2022 until March 2023 the place the retail inflation expert a decline to its lowest stage beforehand 15 months.

    But not all of the items is merrier. Baijal moreover outlined that inflation in several components, akin to core inflation, which accounts for worth pressures in households’ merchandise, has remained elevated albeit with a slight moderation in April 2023. High core inflation impacts the discretionary spending of the households, which in flip leads to moderation throughout the basic consumption demand.

    This has already been witnessed in FY 2023 GDP progress. Although the overall financial system grew by 7.2%, the share of non-public consumption to GDP moderated to 60.6% in FY 2023 from 61.1% in FY 2022.

    Thus, Baijal added, “potential impact of the persistent price pressures on the domestic consumption growth will likely keep the RBI cautious enough to continue with a repo rate hike.”

    Read proper right here: Buy vs rent: HDFC CEO assured on India’s rising precise property demand in coming years. Here’s why

    Pause or cost hike, how will they impression dwelling mortgage EMIs?

    As per Ramani Sastri, Chairman and MD, Sterling Developers., whereas the RBI’s dedication to take care of the repo cost unchanged will unlikely have an instantaneous impression on homebuyers, it does present some stability to the precise property sector. Hence, in such a context, one different repo cost hike by the RBI isn’t going to augur successfully for the precise property sector as dwelling mortgage charges of curiosity are already at a greater stage.

    Sastri further outlined that any further improve in protection costs implies that charges of curiosity on dwelling loans would possibly hit an all-time extreme and call almost double-digit, which could have a substantial impression on purchaser sentiments and affordability, which in flip can curtail demand. Another hike will end in even larger borrowing costs for builders too. Hence, we rely on a continuation of present protection costs through 2023 and undoubtedly, a further low cost in charges of curiosity throughout the near future might be hottest to bolster basic market confidence and make it additional engaging for dwelling patrons.

    Lastly, Knight Frank’s MD talked about, the implication of the pace hike on dwelling mortgage demand has been minimal to this point. Residential demand has remained upbeat indicating a robust consumer selection within the path of dwelling possession no matter extreme price of curiosity and inflation over the previous one 12 months. However, with monetary progress coping with headwinds from the worldwide slowdown, and the entire impression of the high-interest costs however to be seen, we keep cautious of the impression on housing market.

    Since the sooner established order in protection repo cost, there was a blended growth in lending costs.

    Data from RBI revealed that the weighted widespread lending cost (WALR) on latest rupee loans of SCBs decreased by 23 basis elements (bps) from 9.32 % in March 2023 to 9.09 % in April 2023.

    Furthermore, the WALR on wonderful rupee loans of SCBs elevated by 4 bps from 9.72% in March 2023 to 9.76% in April 2023. Meanwhile, the 1-Year median Marginal Cost of Fund based Lending Rate (MCLR) of SCBs remained unchanged at 8.60% in May 2023.

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    Updated: 06 Jun 2023, 10:00 PM IST

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  • The math behind the right-sized mortgage

    It’s 6pm. The photo voltaic has merely set and the sky turned maroon as a result of it often does on random evenings. Pooja has been watching the photo voltaic set from her rented flat, throughout the central suburbs, whereas chatting with her mother-in-law or Mummy ji, on the phone.

    “Do you take into accout Chintu?” Mummy ji asked.

    “Yes,” she replied. “Your youthful sister’s elder son.”

    “Yes,” talked about Mummy ji. “He bought a 3BHK in Bengaluru in January.”

    “But didn’t he get fired after that?”

    “Yes, nevertheless he nonetheless has the flat,” replied, a rather irritated Mummy ji. “And my sister reminds me of that every time she calls.”

    Scene 2

    Later, the an identical evening. Around 9pm. Pooja’s husband, Rahul, has come once more from work.

    “So how was your day?” he asked.

    “It was spent trying to fine tune my PhD topic further,” she replied. “Also, your mother known as throughout the evening.”

    “And?” he requested, as always, barely apprehensive when she spoke about his mother.

    “She wants us to buy a flat.”

    “Nothing new there.”

    “Yes,” she said. “But she was rather emotional today.”

    “Hmmm. So, what are you suggesting?” he asked. “Should we buy one?”

    “I suggest there is no damage in doing just a little elementary contemplating,” she said. “Any way, it’s not a decision that can be made overnight.”

    Scene 3

    Early morning the next day. Around 7am. Pooja has a extreme look on her face and is staring into her laptop computer laptop. Her husband has merely made espresso.

    “Did you sleep successfully?” she asked, as he handed over the cup of coffee to her.

    “Yup.”

    “I couldn’t sleep the least bit. The dialog with Mummy ji has been truly hassling me.”

    “That’s not good,” he replied.

    “Anyway, I acquired up and did some elementary evaluation.”

    “And?”

    “So, I found the maths behind taking a home mortgage.”

    “While that’s not the conversation I want to have first thing in the morning,” he replied, “nevertheless now that you have started…”

    “First things first. I have taken a break from working to do a PhD. So, I don’t have a regular income and that limits the total amount of loan that we can take.”

    “Hmmm. Of course, two incomes go an prolonged technique than just one.”

    “I looked at your salary slip. Your take home salary is around ₹2 lakh per month.”

    “Oh, is it?” he asked. “You know I have no idea about these things.”

    “So, given our payments, I consider we should be cosy paying an EMI of roughly spherical ₹70,000 month-to-month.”

    “That makes sense.”

    “If we’re capable of pay an EMI of ₹70,000, we’re going to get a home mortgage of ₹80.7 lakh at an curiosity of 8.5% to be repaid over a interval of 20 years.”

    “My my, that’s impressive,” he talked about. “You have already found the maths.”

    “It’s pretty straightforward if you know the right functions to use on a spreadsheet,” she replied.

    “Hmmm. What if we aren’t able to get a home mortgage at 8.5% per 12 months, nevertheless get a mortgage at 9%, what happens then?” he asked.

    “At 9%, an EMI of ₹70,000 over 20 years can repay a loan of ₹77.8 lakh, which is around ₹3 lakh lower than the loan we can get at 8.5%.”

    “Interesting. So, the mortgage amount that one can get goes down as charges of curiosity go up.”

    “Yes. And vice versa is also true.”

    “Vice versa?” he asked.

    “Like if we had managed to take a loan early last year when the home-loan interest rate was at 6.5%.”

    “What would have occurred then?”

    “At 6.5% interest, a tenure of 20 years and an EMI of ₹70,000, we could have taken on a home loan of around ₹93.9 lakh, which would have been around ₹13 lakh higher than what we can take on currently.”

    “Oh rattling!”

    “Also, home prices have risen in the last one year.”

    “That’s a double whammy!”

    “Not really,” she replied.

    “How?”

    “Because interest rates have risen in the last one year, so the benefit of low interest rates wouldn’t have lasted that long. Of course, prices have risen too and one can’t do anything about that.”

    Scene 4

    Early afternoon, the an identical day. Pooja is staring into her laptop computer laptop and questioning if she ought to truly be doing a PhD, provided that each factor else has taken a backseat as a result of this one selection. As she was misplaced in her concepts, her mobile started to ring. Mummy ji was calling.

    “So, completed with the cooking beta?” asked Mummy ji.

    “Mummy ji,” she talked about, “you understand na Rahul cooks throughout the evenings.”

    “Oh yes, my son is a great cook,” replied Mummy ji, under no circumstances dropping a chance to reward her son. “But you will need to even be taught to organize dinner his favourite recipes.”

    “Which he is already doing Mummy ji,” she replied, ignoring the barb.

    “Did you guys focus on?”

    “About what Mummy ji?” she requested, making an attempt best to cowl her irritation.

    “About looking for a home.”

    “Oh that,” she talked about. “I’ve started a dialog.”

    “Good to know that,” replied a reasonably joyful Mummy ji. “Rahul is just horrible with money selections.”

    Scene 5

    Same day, late night. The husband and wife are just about ready to go to sleep.

    “You know Pooja,” talked about Rahul, “I spoke to my colleague Ashish as we converse.”

    “And?”

    “He talked about we now have been being very conservative.”

    “Not liberal?” she requested, making an attempt to get in a poor joke.

    “Pooja yaar…”

    “Okay, okay. Conservative about what?” she requested.

    “At my wage diploma, banks and housing finance corporations will give us a a lot greater residence mortgage than merely the ₹80.7 lakh you labored out. And that we’ll merely stretch it just a little bit further. And that one has to take some amount of hazard whereas looking for a house provided that incomes tend to go up.”

    “Which is true. I have been Googling and checking out home eligibility calculators across the websites of various banks and home finance companies.”

    “And?” he asked.

    “There is a rule of thumb going around and it says that banks and housing finance companies are comfortable giving out a home loan of up to 60 times the monthly salary.”

    “Hmmm.”

    “Which means that at your take-home of ₹2 lakh, we can possibly get a home loan of ₹1.2 crore, which is nearly 50% more than the home loan amount of ₹80.7 lakh that I feel comfortable with.”

    “So, what’s the catch?”

    “On a home loan of ₹1.2 crore at 8.5% per year to be repaid over 20 years, the EMI works out to ₹1.04 lakh. At 9%, it works out to ₹1.08 lakh.”

    “I see the place that’s going.”

    “I am currently not earning any money. At ₹1.04 lakh, more than 50% of our monthly income will go towards the EMI. It will really stretch us and we will have to cut down on many of our other expenses. Also, we will be saving next to nothing and I don’t like that.”

    Scene 6

    Around 3pm, the next day. Mummy ji calls nevertheless her daughter-in-law is taking a day nap and ignores the choice. Mummy ji immediately calls her son, who’s getting a dressing down from his boss, for having failed to satisfy closing month’s product sales aim. Mummy ji throws her phone on the mattress and goes off to make a cup of tea. Nothing irritates her better than her youngsters not taking her identify.

    “I don’t know why they try this to me,” she cries out in frustration.

    Scene 7

    Late evening, the same day. Rahul has come back from office early. Pooja is out for a jog. Just as Rahul is about to make himself a cup of coffee, the doorbell rings. Pooja is back. They look at each other and immediately know that they have had a tough day.

    “Are we in a position to take on a home loan of ₹84 lakh?” requested Rahul.

    “Theoretically positive,” replied Pooja. “At 8.5% and a 20-year repayment period, it would mean an EMI of slightly less than ₹73,000.”

    “Hmmm. I’ve come to know of this good one BHK throughout the neighbouring establishing. The proprietor wants ₹1.1 crore for it. But the agent I’m chatting with is Ashish’s good pal and will get the proprietor to knockdown the value to ₹1.05 crore.”

    “Hmmm.”

    “Of course. We ought to pay stamp obligation and as well as pay a price to the agent. So, net net, the total value must work out to ₹1.15 crore. With a mortgage of ₹84 lakh, a down price of ₹21 lakh, we are going to buy that flat. And we would want on the very least one different ₹10 lakh for various payments.”

    “The thing is that we will need at least around ₹31 lakh from our savings ( ₹21 lakh down payment plus ₹10 lakh for other expenses),” she outlined.

    “Yes, that’s true,” he replied.

    “Our total savings amount to ₹40 lakh. This means exhausting a good portion of our savings and I don’t really like that.”

    “But Ashish did say that we should always stretch?”

    “Well. Ashish doesn’t know our finances, na!” she replied, barely irritated. “We are paying for the flat, not him.”

    Scene 8

    Late night, same day. Rahul and Pooja are ready to call it a day when Rahul’s mobile rings. Ashish is calling.

    “Good time to talk boss?” requested Ashish.

    “Yes,” replied Rahul.

    “Okay. So, my brother-in-law is looking to sell a one BHK flat that he had invested in. He wants ₹90 lakh and is unwilling to budge.”

    Rahul had put the phone throughout the speaker mode, so, Pooja was moreover listening. He checked out her and raised his eyebrows and head barely to ask what did she consider this. Pooja gestured that he ought to carry talking.

    Scene 9

    A variety of weeks later. Rahul and Pooja have bought the flat. They have taken on a mortgage of ₹75 lakh and made a down price of ₹15 lakh. They wanted to spend various lakhs further to pay the stamp obligation and to pay for the alternative payments of shifting right into a model new flat. Their monetary financial savings have been proper all the way down to spherical ₹18 lakh. The monetary financial savings state of affairs was greater than the place they’d have ended up in the event that they’d gone ahead and bought the flat throughout the subsequent establishing, which could have value them ₹1.15 crore. Also, the EMI on a mortgage of ₹75 lakh was spherical ₹65,000 and just about ₹8,000 lower than the EMI on a mortgage of ₹84 lakh. Nonetheless, they wanted to cross the creek and dwell further away from the city.

    “So, Mummy ji must now be joyful,” said Pooja.

    “Yeah,” replied Rahul. “We have lastly completed one factor that must make her joyful.”

    “And she will now finally have something to talk about, when her sister talks about her son Pintu.”

    “His title is Chintu,” replied Rahul.

    “Same difference,” talked about Pooja.

    Scene 10

    Rahul and Pooja have moved into their new home. Mummy ji is visiting. Rahul has gone to decide on her up. The doorbell rings. Pooja goes and opens the door. Mummy ji rushes in and quickly checks out the model new flat. Thirty seconds later, she rushes out into the lounge with a upset look on her face.

    “This is even smaller than the servant’s quarter my father’s authorities bungalow used to have,” she said. “And it’s just a one BHK… Now, what will I tell my sister? Her Chintu has a three BHK.”

    Pooja provides Rahul that look.

    (The occasion is hypothetical).

    Vivek Kaul is the creator of Bad Money.

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  • Pay heed to the markup in home mortgage charge of curiosity

    The Reserve Bank of India (RBI) paused the repo charge at 6.50% this month. This is an efficient time to calculate the excellence between the repo charge and your personal residence mortgage charge. That amount is principally the markup in your personal residence mortgage.

    Interest costs have been rising in lockstep with the repo charge. But the markup on these loans have fallen to a three-year low. For occasion, if a monetary establishment affords a home mortgage at 8.40% curiosity when the repo charge is 6.50%, it implies a markup of 190 basis elements over the repo—a steep decline from March 2020 when the underside markup was 275 basis elements. One basis degree is one hundredth of a share degree. With the repo charge going up from 4.00% to 6.50% now, it has turned 20-year home loans into 35-year ones. Loans issued sooner than 2020 have a significantly elevated markup than these issued recently. Therefore, the autumn in markups presents a chance for house owners to get out of debt faster. How? By refinancing to a lower charge—and subsequently a lower markup. Let’s understand this phenomenon larger.

    The markup you pay

    A typical home mortgage charge consists of a benchmark charge and a markup. For occasion, an enormous authorities monetary establishment says its lowest markup is 265 basis elements, over the repo. So 6.50 (current repo charge) plus 2.65 (markup) equals 9.15, which is the underside home mortgage charge from this monetary establishment. The markup is fashioned by components such as a result of the borrower’s credit score rating ranking, provide of income, the mortgage measurement, and typically their gender. The additional creditworthy you is perhaps, the lower your markup.

    What is happening to markups?

    Since October 2019, banks have benchmarked retail mortgage costs to the repo. With this, the decline in markups started. The repo was 5.15% firstly of March 2020. The lowest home mortgage costs then ranged between 7.90% and eight.60%, implying markups of 275-350 basis elements. By March 2022, the underside markups over the repo had diminished to 240 basis elements. This received right here proper right down to 190-200 basis elements in March this yr.

    Why does the markup matter?

    Repo benchmarking has diminished the discretionary powers banks had in resetting the floating costs on wonderful loans. Now, any change throughout the repo charge is met with an equal change in your mortgage charge as quickly as every quarter. But solely the benchmark charge ought to change inside your charge. Your markup—and that’s important—ought to keep mounted during your mortgage. The RBI permits banks to spice up the markup offered that the borrower’s credit score rating ranking declines all through the mortgage. The new benchmarking regime has warmed up home finance. As with the repo charge, charges of curiosity rose rapidly. So, to value their loans competitively, banks slashed their markups. Hence, as charges of curiosity on wonderful loans soared over 9.00%, new loans are being issued at beneath 8.50%. This giant differential presents a chance for house owners.

    How low markups help debtors?

    Thanks to repo benchmarking, we seen a sharp and speedy decline in home mortgage costs in 2020. By 2021, we had most lenders at sub-seven costs, which was unthinkable earlier. Home financing acquired low value. Now, take into consideration a mortgage with a markup of 190 basis elements. If the repo charge fell to 4.00% someday, this mortgage could be priced at merely 5.90%. If you’re on an older mortgage with a so much elevated markup, a refinance to a lower charge is sensible. You’re not merely locking proper right into a lower charge and unfold, you’ll moreover velocity up out of debt as quickly because the repo reverses. Assume you might need taken a home mortgage at 9.50%, which you refinanced to eight.50% for 20 years. If the repo charge is scale back to 5.50% inside a yr, your mortgage charge will fall to 7.50%. With a relentless EMI (equated month-to-month instalment), your mortgage tenor would in the reduction of to spherical 17 years with none prepayment.

    Do discover that costs are cyclical. But must you’re a main borrower with a extreme credit score rating ranking, regular income, and regular mortgage funds, and nonetheless paying a extreme markup, take into consideration a refinance. A low markup could be important to being debt-free quickly.

    Adhil Shetty is chief govt, BankBazaar.com

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  • RBI protection: Is pause in cost hike a good news to your dwelling mortgage EMIs?

    In an sudden switch, RBI saved the protection repo cost beneath the liquidity adjustment facility (LAF) unchanged at 6.50%. Subsequently, it moreover saved the standing deposit facility (SDF) cost unchanged at 6.25%, whereas the marginal standing facility (MSF) cost and the Bank Rate had been moreover unchanged at 6.75%.

    Inflation nonetheless stays above RBI’s increased tolerance prohibit of 6%. In February 2023, the latest learning of CPI is at 6.44%. RBI has factored inflation downward at 5.2% for the fiscal 12 months FY24, whereas GDP growth is projected at 6.5%.

    However, the six-member MPC decided to remain centered on the withdrawal of lodging to guarantee that inflation progressively aligns with the aim whereas supporting growth.

    In regards to dwelling loans, Bhavesh Kothari, Founder & CEO, of Property First acknowledged, “Home loan rates would have reached a record high if the RBI MPC had increased the repo rate by 25 basis points, as was predicted by industry experts, keeping in view the inflationary pressure. Even though inflation continues to remain outside the tolerance limit of the RBI, it has shown a bold move by leaving its benchmark lending rate unchanged. This augurs well for the sector in general and buyers in particular.”

    Since the time RBI began the velocity hike cycle consistent with totally different central banks to take care of inflation, there was an enormous bounce in banks’ lending and deposit expenses. The function behind this can be that cost hikes typically end in a spike within the worth of funds for banks and due to this fact the lenders cross on the have an effect on to complete debtors.

    Latest, RBI’s data confirmed that the 1-year median MCLR has climbed to eight.55% in February from 8.45% in January. Also, the share of exterior benchmark lending cost (EBLR) on full glorious floating cost rupee loans surged to 48.3% by end of December 2022, whereas MCLR-linked loans elevated to 46.1%.

    As per Knight Frank, the superb dwelling loans grew by 15% in FY23 till February 2023.

    Also, the home mortgage expenses have alarmingly peaked at 9.5% since RBI began to hike expenses in May 2023 to tame inflation. Before April 2023 protection, RBI hiked the repo cost six consecutive cases in 11 months — taking the general upside to 250 bps throughout the repo cost from 4% to 6.5%.

    With the pause in a repo cost hike, Kothari acknowledged, “Demand for housing has been robust in the past one and a half years, and a comparatively moderate interest rate regime would prove to be greatly beneficial for the real estate sector as well as the economy.”

    Meanwhile, Likhita Darshan, Vice President – Marketing & Customer Experience, Vaishnavi Group recognized that RBI’s option to sustain the established order on the protection cost comes as a major discount for homebuyers who’ve seen their EMI swelling up by as a lot as 17% as as compared with April 2022.

    Darshan added, “In the residential real estate segment, buyer sentiment has continued to be robust and this has resulted in home sales showing an appreciable rate of growth. With the apex bank maintaining lending rates this time around, this positive sentiment would get a further boost, reflected in improved sales traction and a healthy pipeline of supply in the ongoing quarter.”

    Along comparable traces, Ravi Subramanian, MD & CEO, of Shriram Housing acknowledged, “customers will heave a sigh of discount submit RBIs cost pause since they’d been starting to actually really feel the pressure of rising charges of curiosity. More importantly, inflation has softened, though it stays barely elevated than RBI’s tolerance stage. It is anticipated that inflation will proceed to ease and normalize contained in the RBIs tolerance prohibit. The unchanged repo cost will make it easier for dwelling patrons to make purchase alternative.”

    Shriram Housing’s CEO believes that this will provide a fillip to the affordable housing segment which is crucial for the growth of the economy. MPC’s stance on repo rate will help in making housing finance solutions more accessible and affordable to the masses, especially those in the lower income segments.

    However, Kalpesh Dave, Head – of Corporate Planning & Strategy, Star Housing Finance also explained that the pause in the REPO rate hike taken by the RBI, if at all provides a breather but should not be seen as a flattening of rate hike cycle as RBI in its statement has said that it remains focused on withdrawal of accommodative stance. Given continued turbulence internationally and possible slow down due to happenings in banking space in developed countries one expects the current cycle to continue.”

    This means the credit score rating worth for retail and institutional debtors is anticipated to remain extreme and this should be factored of their budgetary planning for FY2023-24. Dave added, for current and new dwelling patrons who’ve / shall avail(ed) finance for his or her objects should brace for continued comparatively elevated outgo inside the kind of their month-to-month instalments. 

    “One may proceed to look decisions to refinance their current debt obligations and even take into account mounted cost loans if the price revenue dynamics in the long run grow to be optimistic for them,” Dave said. 

    On an overall sector, Sankey Prasad, CMD, Colliers India said, India’s residential markets have maintained noted 15-year high sales maintaining their trajectory in the first quarter of 2023. This will bring in a new wave of optimism amongst home buyers resulting in higher property sales.

    In Dave’s view, the decision to keep the repo rate unchanged is positive news for the banking and NBFC sectors, as well as other sectors like real estate and infrastructure. He added, “We are completely satisfied regarding the central monetary establishment’s alternative given the attainable unfavorable outcomes of a elevate throughout the repo cost and its knock-on outcomes on every housing demand and supply. We think about this movement would significantly enhance {the marketplace} for cheap and mid-income housing, significantly.”

    Further, Shiv Parekh, Founder hBits highlighted that it was important that the RBI evaluated the cumulative effects of the past hikes. Keeping the repo rate unchanged at 6.50% will add a wave of relief across industries especially the real estate sector; the sector has been in distress due to successive hikes for the last six months. Most industries were affected due to the high rate of working capital and real real estate was no exception.

    According to Parekh, there needs to be a balancing act for growth along with tightening monetary policy to tame inflation. At this point of time, it was important to hold the rates. This will definitely act as the boost needed by the sector. Inflation has been high due to external factors as well. Now businesses will be able to generate more employment opportunities due to the growth effected through easy money availability.

    Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “From an precise property market perspective, the sector has weathered plenty of dwelling mortgage price of curiosity will enhance from a low of 6.5% to eight.75%, supported by helpful house purchase affordability and the sturdy need within the route of dwelling possession. Therefore, a pause in any further rise throughout the lending expenses ought to help the prevailing growth momentum throughout the housing sector.”

    But a rate cut after the April 2023 policy will be cherries on top of the sector.

    Ramani Sastri – Chairman & MD, Sterling Developers said, “A scale back within the vital factor expenses going forward will be broadly appreciated as low-interest expenses have carried out an vital place throughout the revival of basic precise property demand and enchancment throughout the liquidity state of affairs, which is critical for the sector. There may also be good confidence in precise property as an asset class as compared with totally different asset classes at current and in the long term, we rely on markets will see sustained growth. With restoration of the financial system, we rely on that the true property sector will contribute a substantial share to basic monetary enchancment.

    Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE,  moreover believes that the pause in cost hike is a sign that the RBI’s monetary tightening is now in its remaining half, which spells optimistic info for the true property enterprise.

     

    Disclaimer: The views and proposals made above are these of specific individual analysts or broking companies, and by no means of Mint. We advise consumers to confirm with licensed consultants sooner than taking any funding decisions.

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  • Try this to cut back the burden of RBI charge hike on your private home loans

    Home mortgage consumers have borne the brunt of the back-to-back RBI charge hikes to curb rising inflation in India. For the final two years, residence loans have change into dearer for brand new entrants and in addition for present debtors. The burden of high-priced residence loans has been handed on to the debtors both within the type of larger rates of interest or extension.

    Since May 2022, the RBI has elevated the important thing repo charge six occasions by a complete of 250 foundation factors to curb inflation. The transfer has additionally resulted in larger residence mortgage charges. For some, a house mortgage tenure has even prolonged to their retirement age. However, debtors can go for the next measures to cut back rates of interest on their loans.

    Also Read: Is it a great time to go for a house mortgage steadiness switch amid the prevailing charge cycle?

    Switch to different financial institution

    Even although there was an increase in residence mortgage charges, banks are lowering their mortgage charges to draw clients within the new monetary 12 months. By protecting in thoughts their mortgage tenure, mortgage charges of different banks, processing payment, and predictions of an upcoming charge hike, debtors can consider switching their residence loans to different banks.

    The processing payment is the cash paid by mortgage debtors to the brand new lending financial institution you might be switching to. Generally, it’s round 0.5% of the mortgage quantity. Bank of Maharashtra and Bank of Baroda have lowered the rates of interest on their residence loans regardless of rising rates of interest. Moreover, the Bank of Baroda has additionally eliminated the mortgage processing charges. Last week, the Bank of Maharashtra lowered its residence mortgage rates of interest by 20 foundation factors to eight.40%, making it one of many lowest within the sector. Just like these two banks, a number of different banks have additionally decreased their mortgage charges to encourage different debtors to modify to those banks.

    Negotiate with present lender

    In case of a scarcity of engaging choices by different lenders, debtors can even attempt to negotiate with their present lenders to cut back mortgage charges. In such a case, residence mortgage clients want to keep up their larger CIBIL rating to make the state of affairs of their favour whereas negotiating with the lender.

    Also Read: How to say revenue tax advantages on residence loans in FY23?

    Loan conversion

    Apart from negotiating with banks, debtors can verify on their financial institution’s web site for any conversion scheme. Under a conversion scheme, present debtors can cut back the rate of interest of their residence loans within the present financial institution by paying a sure amount of cash termed as conversion payment. The conversion payment is usually 0.25-0.5% of the excellent mortgage. Even throughout mortgage conversion, it’s higher to barter with a banker earlier than paying the conversion payment to get the bottom potential residence mortgage charge.

    Loan Refinancing

    Another approach, to dodge the repercussions of an aggressive charge hike on your private home mortgage is to go for mortgage refinancing. Under this methodology, debtors can exchange their present mortgage with a brand new mortgage that has higher phrases like decrease rates of interest and shorter tenure. Here additionally, debtors need to pay a processing payment of 0.5 per cent.

    During refinancing, an present residence mortgage buyer of a financial institution takes a brand new mortgage to repay the previous one. In many circumstances, banks are prepared to supply higher offers for debtors who need to refinance their loans.

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  • FY23 to finish quickly: How to plan your financial savings from subsequent fiscal to purchase first residence

    The subsequent large factor for incomes girls can be the top of the monetary 12 months FY23 which is simply a few weeks away. The month of March is usually busy for workers, employers, and taxpayers. However, with the brand new fiscal 12 months simply across the nook, it is very important put together your financial savings mechanisms particularly in the event you’re trying to purchase your first residence in 5 years.

    The closing of a monetary 12 months normally comes with a bunch of things, as an example, you shut your accounts ebook for that respective 12 months, calculate your earnings and likewise file for revenue tax returns (ITRs).

    Teena Gandhi, Vice President, Earnnest.me mentioned, “Owning a home not only provides a safety net but also holds sentimental value. Buying the first home can be overwhelming as it requires a considerable amount of corpus, so one has to plan meticulously.”

    She believes that it’s not solely essential to begin saving early however put money into the precise product combine that may yield returns to make the down fee which in itself is 10%-15%.

    Also, on the event of Women’s day which was previous to Thursday, Aditya Damani, Founder, and CEO of Credit Fair mentioned, “Women need to take charge of their finances. It’s heartening to see the rising workforce participation of women. However, unfortunately, most women outsource financial management to their families.”

    Further, as per Gandhi, EMI (in case of a house mortgage) stamp obligation, registration expenses, and inside designing, all of it require continued monetary energy, to not overlook the silent creep – inflation.

    Also, Gandhi mentioned, girls want to save lots of greater than males due to the gender pay hole. They can open particular financial savings accounts with banks that supply zero account balances and ladies also needs to familiarize themselves with the tax advantages that they’ll avail.

    In Gandhi’s view, understanding how a lot cash is required on the finish of 5 years can act as a place to begin. It is essential to finances & stick with the plan, minimize big-ticket bills, and automate financial savings. One has to take a look at returns of anyplace between 12% to fifteen%. With a large number of choices out there at the moment, a lady can look to put money into professionally managed Mutual funds with the precise asset allocation to swimsuit her wants, mounted revenue devices, REIT’s and many others. that can assist them construct the corpus obligatory to purchase her first residence.

    Meanwhile, Damani mentioned, step one is for them to take cost and decide their very own aims and set their monetary plan. There is a universe of funding choices and lots of of which is likely to be extra appropriate than shopping for a home. If shopping for a home is the target, they need to begin doing a SIP to build up for the down fee in 5 years. They also needs to do analysis.

    Damani additionally mentioned, “Women are eligible for a lot of exclusive benefits such as lower stamp duty and home loan rates as of now. If they’d like to take advantage of them before the government changes the provisions, they can try to advance the home purchase timelines to under 3 years. There are options to avail loans for a home down payment, stamp duty, and interiors in such scenarios.”

    Currently, residence mortgage charges have gone up on account of RBI’s financial coverage tightening and charge hike cycle for the present fiscal, an effort to carry stubbornly excessive inflation underneath management.

    How regardless of the speed hike, the actual property sector has witnessed sturdy flows which additionally has boosted the combination family revenue in India.

    As per the most recent report by ICICI Securities, evaluation utilizing National Accounts Statistics because the Fifties signifies {that a} rise in investments in residential actual property has coincided with an increase within the mixture disposable revenue of households.

    Brokerage’s notice added that purpose for the above relationship is that real-estate improvement is estimated to be the second-largest employment generator in India after agriculture and largely within the unorganized section.

    Going ahead, ICICI Securities notice mentioned, the Household real-estate funding cycle is rising after a decade of stagnation throughout which its share in GFCF dipped from 37% in FY12 to 25% in 2021. The cyclical restoration in residential actual property will enhance the revenue development of the associated stakeholders talked about above. Workers concerned within the leisure section, which once more is dominated by the unorganized section, are additionally more likely to see buoyant revenue development. However, agriculture wages stay a the important thing threat to mixture revenue development, given its massive weight inside the mixture workforce, as they are going to be pushed by prospects of how monsoon and agriculture output pans out in FY24.

     

    Disclaimer: The views and proposals made above are these of particular person analysts or broking firms, and never of Mint. We advise traders to verify with licensed specialists earlier than taking any funding choices.

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  • New earnings tax slabs, a excellent news for residence mortgage EMIs?

    The new earnings tax slabs introduced within the Budget 2023, are seen to present extra money into the palms of salaried people which is more likely to enhance the demand for residence patrons. Also, rising the allocation within the PM Awas Yojana (PMAY) by 66% is one other optimistic issue to drive residence purchases. That mentioned, these are more likely to ease pressures on availing residence loans and paying its EMIs.

    In her funds speech on Wednesday, Finance Minister Nirmala Sitharaman elevated the outlay for PMAY by 66% to ₹79,000 crore.

    While the revised new earnings tax regime was the showstopper for this funds. FM proposed to make the exemption restrict to ₹7 lakh underneath the brand new tax regime. Earlier, the exemption restrict was ₹5 lakh earnings in each the outdated and new regimes.

    Further, she proposed altering the tax construction within the new regime by decreasing the variety of slabs to 5 and rising the tax exemption restrict to ₹3 lakh.

    Under the revised new earnings tax slab, no tax is levied on a wage of ₹3 lakh, whereas a 5% tax charge will probably be levied on a wage from ₹3 lakh to ₹6 lakh; a ten% charge on ₹6 lakh to ₹9 lakh; 15% charge on ₹9 lakh to ₹12 lakh; 20% charge on ₹12 lakh to ₹15 lakh; and 30% charge on above ₹15 lakh wage.

    Additionally, the FM has proposed to scale back the surcharge charge from 37% to 25% on the very best tax charge within the nation of 42.74% to a most charge could be 39%.

    How does it profit residence patrons?

    According to Shrikant Shrivastava, Chief Risk Officer, IMGC (India Mortgage Guarantee Corporation), the rise in PMAY funding to 79,000 crores is a optimistic step towards increasing the financial advantages of reasonably priced housing initiatives to extra homebuyers. PMAY had already been a giant success, subsequently this can be a great transfer to encourage the actual property trade usually, which has a big cascading impact on different areas of the economic system. The second important announcement is a rise within the city infrastructure funds, which could have a long-term affect on financial progress generally and the actual property trade particularly.

    IMGC CRO additionally identified that the private income-tax adjustments seem to favour the brand new tax regime, which might simplify the present difficult tax regime. Another significant factor of the private tax slab adjustment is that it has been most rewarded within the slab by which the majority of taxpayers fall.

    He mentioned, “We know that just about 6 crore people file income tax returns, of this ~70% have incomes of upto 5 lakhs, while another ~15% have incomes of 5-10 lakhs. The upto 7 lakhs exemption limit will benefit a significant number of existing taxpayers while also providing extra disposable income for a home purchase.”

    Meanwhile, Dr. Samantak Das, Chief Economist, and Head of Research and REIS, India, JLL, mentioned, “The 2023 Budget, in a pre-election year, sought to build on the roadmap laid down by previous budgets, focusing on inclusive development, fostering growth and job creation while keeping the macro-economy in a stable yet growth-oriented mode. It has given more money into the hands of individuals and households which would, to a large extent, ease out the increasing pressure on account of home loan EMIs and rising home prices.”

    Das added, “The increase in allocation for PMAY by a significant 66% would help continue capital flow under CLSS and other related schemes. Addressing the need for creating sustainable cities of tomorrow through urban planning, ease of land availability, and promoting TOD schemes will be key towards sustainable development moving forward. Focus on overall infrastructure development and on Tier 2 and 3 cities will be key to overall economic development. The Budget is a balanced one for the economy while missing out on key real estate sector demands.”

     

    Disclaimer: The views and proposals made above are these of particular person analysts or corporations, and never of Mint.

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