Axis bank has come up with a new fixed-cum-floating home loan offer for new home loan buyers.

The scheme is known as the Power Advantage Home Loan scheme which allows customers to lock in their home loan rates @ 8.25% for the first two years of the tenure followed by a floating rate. Two months back, the bank had announced a scheme wherein the interest rate would be fixed at 8% for the first year followed by a floating rate.

Whereas in the new scheme, after the first two years, the floating rate of interest would be applicable at Mortgage Reference Rate (MRR) minus 350 basis points (bps) for loans upto Rs 30 lakh and MRR minus 300 bps for loans greater than Rs 30 lakh. Mortagage reference rate is the basis for floating rates in a housing loan.

The scheme is open till March 31, 2010 and the maximum tenure of the loan will be 25 years. Axis Bank home loan scheme is similar to HDFC which last month announced a scheme whereby the rate will be fixed at 8.25 per cent till 31 March 2012 with a floating rate thereafter.

Axis bank has come up with a new fixed-cum-floating home loan offer for new home loan buyers.Whereas in the new scheme, after the first two years, the floating rate of interest would be applicable at Mortgage Reference Rate (MRR) minus 350 basis points (bps) for loans upto Rs 30 lakh and MRR minus 300 bps for loans greater than Rs 30 lakh. Mortagage reference rate is the basis for floating rates in a housing loan.

As we move into the first quarter of 2010 there are many theories floating around about the potential state of real estate in the coming year. While it is never a good idea to run willy-nilly into financial decisions based on predictions of what might be, it can be wise to keep an eye on the trends so that you can be aware of what’s going on in real estate if you’re planning on buying or selling your home in the new year.

Real estate prices are anticipated to even out over the next few months so that prices can stabilize; experts say that the signs of this happening in the later parts of the year, after a bit more of a decline. While the three year decline will continue for at least a few more months, the slide has been much less pronounced over the last half of 2009 than it has in months previous to that.

While many residents across the country would like to see the employment rate recovering quickly as we creep into the new year, it is more likely that we will see a slight increase in the number of people out of work before we see any recovery in that area. This increase in unemployed homeowners will definitely make an impact on homeowners paying their mortgage payments, especially owners with underwater mortgages. The rate of delinquent payments is in direct correlation to the numbers of unemployed in the country at present.

Mortgage standards are also likely to increase to avoid some of the lending issues that have arisen due to lower standards of qualification required by the Federal Housing Administration. Due to the relaxed standards required for some borrowers to get mortgages, there were an additional portion of home loans awarded where the homeowner’s ability to pay was somewhat questionable. To help avoid mortgages being given to homeowners that might not yet be ready to be able to pay for them, a boost in qualification requirements is likely to be seen this year.

The preceding forecasts for the upcoming year are all likely to work together to maintain a buyer’s market for at least the first half of the year; after that the market will begin to stabilize and start coming to a more balanced point where sellers will find the market a bit more amiable to them as well. It does look like it will be a long time before we actually see a seller’s market again, however.