RBI Holds Repo Rate: Affordable Home Loans Boost Realty

RBI kept the repo rate unchanged at 5.25% on February 06, 2026. Home loan rates stay steady, helping real estate demand hold firm in 2026.

India’s rate pause is giving homebuyers a stable window to plan purchases. On February 06, 2026, the RBI Monetary Policy Committee held the repo rate at 5.25% and maintained a neutral stance. For buyers, it means no fresh EMI relief, but no sudden rise either. 

Developers and brokers are reading this as supportive for booking decisions, especially in mid-income housing where EMI planning is tight. Home loan pricing in the market is still spread out, broadly 7% to 12%, so the best deals remain skewed towards strong credit profiles. 

What’s Driving The Conversation Right Now?

The central issue is affordability staying steady at current levels. With the repo rate unchanged, the monthly outgo for most floating-rate borrowers is expected to stay stable, barring lender-level repricing. 

Consumer-facing reports have flagged that this kind of pause often nudges fence-sitters to convert, because the EMI calculation stays predictable through the purchase cycle.

At the same time, the market is not getting a new push from a rate cut. That means demand will likely lean on income sentiment, project delivery confidence, and city-level supply discipline rather than cheap credit alone. Several sector voices have positioned the pause as a “confidence signal” for planned buying, not a trigger for panic bookings. 

How The Hold Can Lift Real Estate Activity?

The biggest support is psychological and practical. Buyers can lock budgets, compare lenders, and negotiate with developers without worrying about rate volatility in the next few weeks.

Lending rates continue to vary widely by borrower profile, which is why “affordable” depends on eligibility more than headlines. The latest market roundup puts home loans in the 7% to 12% band. 

Before the numbers, here is a quick macro snapshot investors are tracking after the decision.
 

This stability also plays well with developers planning launches. When borrowing costs are predictable, it is easier to price inventory, run subvention offers, and structure flexible payment plans without constant repricing. 

In parallel, Reuters also flagged that the RBI proposed allowing banks to lend to REITs under prudential safeguards, a move that can support institutional funding routes for commercial assets over time.

Earlier Moves That Set Up This Pause

The February hold follows an easing phase that began in February 2025. Reporting has pegged cumulative cuts since then at 125 bps, which is why the current pause is being read as consolidation rather than reversal.

The last cut was in December 2025, after which the February meeting became a checkpoint for inflation risks, liquidity, and transmission. Market coverage has also pointed to lender-side factors like deposit costs and liquidity conditions affecting how quickly borrowers actually see changes.

Separately, Reuters noted that trade developments, including a U.S. move to reduce tariffs on Indian imports from nearly 50% to 18%, helped ease pressure on the macro outlook.

Before the lender view, here is the rate spread buyers are actually shopping in.
 

LoansJagat’s February 08, 2026 update also framed it as a continuity phase for borrowers, with interest rates largely staying unchanged after the policy decision.

What Stakeholders Are Saying?

Real estate consultants have broadly welcomed the stability. A Hindustan Times report quoted Anuj Puri, Chairman, ANAROCK, saying that with the repo rate unchanged, home loan EMIs are expected to remain stable, helping buyer confidence stay intact.

From the policy side, market coverage quoted RBI Governor Sanjay Malhotra on being prepared for liquidity action to improve policy transmission, which lenders and borrowers watch closely. 

Conclusion

With the repo rate on hold at 5.25%, real estate activity in 2026 is likely to ride on stable EMIs and buyer confidence. The loan winner will still be the borrower who negotiates hard and compares rates across lenders.