If you go in for a transparent floating rate home loan, you also get the benefit of reducing interest rates as (not if) and when the interest rate cycle turns and commences on its downward journey. Even if the interest rates rise, in the interim as long as they do not rise above the 1.00% differential; you are still a net gainer.

Like in advanced economies, the influence of an effectively functioning credit bureau pervades all aspects of your life. Want to take a house on rent? The landlord will want to check out your credit report to judge whether you pay your bills on time. Want a job involving sensitive or valuable information?

So, does it mean that the sector will be stifled for cash? -- Experts feel that such a situation should not arise because there is money that is coming in through Foreign Direct Investment (FDI) and a lot of builders are also approaching the stock market in the coming months. As Lodha puts it, 'We, as builders will, also factor in these measures in our own growth plans.'

Real estate players think that the present prices may be able to hold firm till March 2007. However, one could see some downward correction in the prices post-March. What is important is that there should be new supply in the estate market to help control prices. Presently, the slackness in activity is not very apparent because foreign investors are pumping the money and Indian builders are also aggressively trying to tap the IPO market. So, new projects are still on the anvil.

This often leads to a common mistake of assuming that it is better not to prepay, say, after half way through the loan tenure, because the interest component is low now. But the fact is that the interest outgo as a percentage (which is what the interest rate is) on outstanding principal is the same whether it is after the 24th month or after the 120th month.

It is during the interest rate reduction that this trend is most visible. An existing borrower (or wife) has been given a rate of interest of (say) 2% below the Retail Lending Rate. {The Retail Lending Rate is just a nomenclature and different banks have different names for this reference rate).

Bankers are willing to wait out for a few weeks to get a clearer picture. "The trigger to increase the CRR is the current liquidity in the market. Speaking about its impact, banks are unlikely to raise interest on a short-term basis", said a State Bank of India official.

This is not advisable as very few banks provide genuine fixed rate loans anyway. Genuine fixed rate loans are those where the loan document does not have any clause in the agreement that allows the bank to change the "fixed rate" of interest. These loans are not available for less than 13.00% plus you will need to pay a fee for shifting to such loans. So your EMIs will go up immediately plus you will need to pay a fee to shift to such fixed rate loans. This shift will remain more expensive till the move beyond the current fixed rates of 13.00%. We must not forget that interest rates move in cycles and that over the long tenure of a typical home loan you will be able to benefit from the drop in rates (as and when they happen) also just like you have paid for the increase in rates.

The rate that you would be offered after your documents are looked at by the bank would often be lower than what you are offered at the first meeting. So do not take any decision before the bank reverts to you after examining your income document.

You have raised a very interesting question. Under Section 64(i) (iv), the income arising to the spouse of the assesses from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration is clubbed as the income of that individual. In simple English it means that the income arising out of the house that is purchased from the cash gifted by you shall be taxed as your income.