In a massive turn of events, India based Lodha Developers have repaid a 16.4 billion rupee ($333.6 million) loan to Deutsche Bank, which gained 9 bn rupees on the loan. Lodha Developers paid Rs 25 bn to the bank, giving Deutsche a 55% return on its Rs 16 bn initial investment making it one of the biggest real estate FDI transactions in history.

Lodha Developers, who are one of Mumbai's biggest realtors, repaid the bank loan with 17.2 billion rupees of cash on hand and 8.25 billion rupees raised by issuing non-convertible debentures. The amount for the bank loan was repaid on account of sales of 50 % of the flats in the 117 storey World One tower of the company, which would become the world's tallest residential building once it is completed in 2015. The cost of each flat in the project ranges from $ 1.5 million to $ 15 million. The bank loan was given to the company in the year 2007 via a convertible debenture issue and the outlook on its repayment had to be rescaled each year due to global economic conditions.

However with the bank loan now paid off, Lodha Developers' total debt stands at Rs 30 bn from Rs 40 bn, causing a 25 % improvement in the balance sheet; as well as leaving them with a 15 bn rupees surplus cash which the company looks forward to invest in FY13.

Australian banks namely ANZ and Westpac have increased home loan interest rates within hours of each other yesterday. In a situation of another recession this sure will give families a trying time.

Even though the move came in order to protect their profits the banks' move will make it harder for its customers already struggling with home loan repayments. It will further burn a hole of $13 on a home loan of $300,000 for ANZ customers. Westpac will be setting back its clients' budget by $20 on a mortgage of $300,000 because of a still higher interest rate.

The Commonwealth and the NAB will be following close in the heels of ANZ and Westpac when they announce their interest rate hike. Earlier the Reserve Bank of Australia was expected to announce a rate cut but it stayed put and let the banks take on the cudgels. Had it done so the banks would have either passed on some of the benefit to its customers or none of it but it would have been at least better than the rise in home loan interest rates.

In a situation when unemployment is climbing across manufacturing industries this move could not have been more ill-timed. As competition amongst the top four banks heat it may not fetch much relief to customers of home loan who may be on the lookout for smaller banks for their mortgage needs.

It amazes me that some people don't explore the possibility of refinancing. It may be a bit of a hassle, but if it works out, the benefits can be so rewarding. For instance, if your monthly payments are reduced, and if you have the kind of mortgage that doesn't penalize you for early payment, you could save up some extra money. With that, you could make an extra mortgage payment now and then, which can have a dramatic effect on paying down your mortgage. These are some of the aspects to look into by talking with an adviser. Also, some of the extra money could be used for home improvement. For example, after we refinanced, we eventually had money to do some badly needed updating to our home, primarily to our floors. We got some wonderful Empire carpet and wonderful ceramic tiles from Empire Today for our kitchen. It was very satisfying to be able to do that. We're now putting money aside to redo our doors and windows, which are so old they really need to be replaced. After that, we'll be saving up for a new heating system. However, some of the money we're saving we put aside for that just that: savings!