house financing – Lic Housing Finance Shares Up 9 Percent

After having a healthy trading throughout the day LIC Housing Finance emerged as one of the top gainers with a gain of Rs. 69.90 (8.57 percent). During the day the company traded in the range of Rs. 815.55 – 893.90 with trades of 1,338,535 shares. The company has P/E ratio of 13.78.

LIC Housing Finance is an India-based company. The company is engaged in the business of providing loans for purchase, construction, repairs and renovation of houses/flats to individuals, corporate bodies, builders and co-operative housing societies and has its operations within India. The company’s subsidiaries include LICHFL Care Homes, which is engaged in the business of setting up, running and maintaining assisted living community centre/ care homes for senior citizens; LICHFL Financial Services, which is engaged in the business of marketing various financial products and services; LICHFL Asset Management Company, which is engaged in business of managing, advising, administering mutual funds, unit trusts, investment trusts and to act as financial and investment advisors and render financial advisory services, and LICHFL Trustee Company, which acts as a trustee to venture capital trusts and funds.

With 2,239,999 units of shares HDFC Top 200 Fund holds the largest number of shares in LIC Housing Finance. Other housing finance companies also ended the day on high note with GIC Housing Finance and IND Bank Housing gaining 2.09 and 2.90 percent, respectively. Out of 13 stock analysts following LIC Housing Finance, the consensus recommendation is hold, while four recommended buying the stock.

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house financing – SBI captures 17 percent of shares in housing finance

The country’s largest lender, State Bank India, has captured 17% of the domestic housing finance market share, same as HDFC’s share as on March 2010.

According to Icra report on ‘Performance review of housing finance companies and Indian mortgage finance market for 2009-10′, both SBI and HDFC have 17% market share each while the ICICI Bank which has slowed down its housing finance exposure has 13% share. LIC housing finance and IDBI Group have 8% and 4%, respectively.

As of March 31, 2010, HDFC, State Bank of India, ICICI Bank and LIC Housing Finance clearly dominate the domestic mortgage market, together accounting for 55% of the total housing credit in India, said the report.

Apart from these big players, there are some housing finance companies with relatively smaller credit portfolios operating in their respective geographies or serving niche customers.

While small HFCs, over the past few years, have been growing their portfolio rapidly, the rating agency expects the currently dominant players to continue maintain their market share, henceforth.

Meanwhile, banks which together hold around 70% of the total individual home loan market, are expected to maintain a sizable market share, even as HFCs are likely to grow by offering superior service levels and by tapping underdeveloped segments. Further, significant growth plans of some of the new HFCs could also increase the overall market share of HFCs, said the report. Although housing loans remain the main source of revenues for small HFCs, the proportion of other loans in their loan book increased to 8% as on 31 March, 2010 from 7% the previous fiscal.

Other loans consist mostly of loans against property, lease rental discounting, and builder loans. One of the primary reasons for the shift in the portfolio mix of HFCs is the intense competition from banks, which has pulled down incremental yields on housing loans. Non-housing loans, on the other hand, offer relatively higher yields although the risks inherent in these segments are higher than those in housing loans, ICRA said.

Usually when you want to get a house, you would need a five to ten percent down payment. So if you are getting a house worth $400,000.00, you would need between $20,000.00 and $40,000.00.

A hundred percent financing means you wouldn’t have to look for any down payments. This however means you would have to pay some extra for the convenience of this loan.

Online today, one can find a whole of 100% financing home loans. There are so many different types of them. Some also cover the cost of closing on the property and others include extra for furnishings and maybe some renovation.

For people who are not able to raise a down payment for the home they intend to purchase for whatever reasons. NO deposit home loans is very suited for them. Newly weds or people who lost their homes to some disaster or the other or people who want to invest in real estate make the most use of these type of loans.

With these type of loans, you can get the house of your dreams without thinking about how to raise the needed down payment or worrying about being able to afford it if its value increases in the real estate market. In addition to this, you can get no deposit home loans that would include paying for expenses arising from refitting the house.

It is important however to note that this kind of loans, usually attracts a higher interest rate for understandable reasons. The more the money you take as loan, the higher the interest in the long run.

It is also more difficult to get 100% financing home loans than the regular type because there are tighter criteria for qualifying for this type loans.

The last thing to note is that when you get a no deposit home loan, you are at risk of negative equity. That is if the value of the house you bought with the 100% financing reduces, the finance provider would demand extra fees from you.

Before getting whatever kind of loans, make sure to get detailed information.