Home Loan Rates Plummet: Should You Buy Now or Wait for 2026?

• RBI reduced the repo rate by 1.25% in 2025, bringing it from 6.5% to 5.25%, directly lowering home loan interest rates.
• Major banks like Bank of India, HDFC Bank, ICICI Bank, State Bank of India, Bank of Baroda, and Canara Bank now offer home loans starting from 7.1-7.9%.
• Both new and existing home loan customers benefit; existing borrowers can save significant interest by reducing tenure or EMI.
• For example, a 50 lakh loan for 20 years could save 18.32 lakh by reducing tenure to 198 months.
• Economists, including Siddhartha Sanyal of Bandhan Bank, predict a further 0.25% repo rate cut in early 2026, potentially making home loans even cheaper.

Why It Matters: Home loan rates are down due to RBI cuts, with potential for further reduction in 2026.