However, for many high home prices were discouraging.
“The economy has improved and the liquidity situation is much better and interest rates have eased off considerably,"" said Anoop Pabby, joint managing director at Deutsche Postbank Home Finance.
“It is only natural then that the home buyers expect the reduced risks to result in reduction in interest rates and relaxation of margin money norms."
The housing finance company funds up to 80 per cent of the property value to most salaried people.
However, depending on the credit worthiness of an individual, it is raised to 85 per cent.
The amount is more than 70 per cent of what it used to lend six months ago.
The situation improved at the backdrop of the Lehman Brother's fall as the Reserve Bank of India cut lending rates to record lows and pumping in unprecedented amount of money into the system.
Lenders such as ING Vysya Bank, and Punjab & Sind Bank reduced the margin money requirement to 15 to 20 per cent from 25 to 30 per cent towards the cost of the house on their home loans.
However, in that case the borrower paying investing lesser capital.
In that case, on a home loan of Rs 25 lakh, a customer would need to pay only Rs 3.75 lakh now against Rs 6.25 lakh as demanded earlier.
State Bank of India may reduce margin requirement to a further 5 per cent.