National Housing Bank, the housing finance regulator, is looking at issues concerning teaser rate saying such practices could pose systemic risk for the home loan sector. “We have to be on top of the issue (teaser rate) …
closely follow the issue to have better handling of the subject so that it should not start hurting the sector,” NHB Executive Director R V Verma told PTI.
“If teaser rate is provided in large scale, it may have adverse impact on the stability of system,” he said.
NHB is looking at it as systemic issue both from borrower’s and lender’s perspective, he said.
The regulator, he said, is assessing the matter right now.
The statement assumes importance as leading housing finance firm HDFC was offering teaser rate to the new borrower at 8.25 per cent for the first year
