Impact of mortgage finance in India

Abstract

Mortgage sector considered a very important sector in today's global economy. Importance of this sector increased in few years. Across the globe many countries consider mortgage sector as one of the important parameter of their economic growth. The mortgage is a debt, but it provides a sense of ownership to the buyer.Mortgage financing over the years has been a preserve for mortgage financing companies but with time, commercial banks have started engaging efficient housing finance system has significant importance both in meeting the housing needs of individuals and in reinforcing the development. The objectives of the study were to establish the effects of mortgage financing on Financial Performance of commercial banks. The study had four specific objectives establish effects of repayment period, interest rates, income levels of borrowers and valuation cost on performance of mortgage financing.