Learn about the various types of Home Ownership Loans (KPR) designed to meet your various needs and financial conditions.
Home Ownership Loans (KPR) are one of the popular solutions for people who want to own a home without having to pay in full up front. Banks or other financing institutions provide funds to home buyers which will then be paid in installments over a certain period of time.
Along with the growing needs of the community, KPR also comes in various types, each with different characteristics, advantages, and requirements. Here is a review of the types of KPR that you need to know:
1. Subsidized KPR: An Affordable Option for Low-Income Communities
Subsidized KPR is a home financing scheme that receives direct support from the government. Through this program, low-income people are given convenience in the form of low interest rates, down payment assistance, and long tenors.
BTN Mortgage is one of the best options for those looking for affordable home financing with various benefits. There are several variants of subsidized KPR available:
- FLPP (Housing Financing Liquidity Facility): This program provides a fixed low interest rate of 5% per year, and a tenor of up to 20 years.
- SSB (Interest Difference Subsidy): A program that reduces the burden of interest rates through subsidies from the government.
- SBUM (Down Payment Assistance Subsidy): Direct assistance to reduce the down payment that must be paid.
This type of mortgage provides easier access for people with a maximum income of IDR 7 million per month, with a down payment of only around 1% of the house price. However, buyers must meet certain requirements set by the implementing bank.
2. Non-subsidized mortgages: Flexibility from the Bank
Non-subsidized mortgages are a financing scheme that is fully regulated by the bank without direct assistance from the government.
This type of mortgage is offered to the general public, including those with higher incomes. The terms, interest, and installment tenor are fully determined by the policies of each bank.
The advantage of non-subsidized mortgages lies in their flexibility: buyers have more property choices, from simple houses to premium properties.
Although interest rates tend to be higher than subsidized mortgages, the application process for non-subsidized mortgages is simpler and does not require certain income requirements.
3. Sharia Mortgage: A Choice Without Usury
For those of you who prioritize sharia principles, sharia mortgages are the right choice. Different from conventional mortgages that use interest rates, sharia mortgages use the murabahah (sale and purchase) or ijarah muntahiyah bit tamlik (hire and purchase) schemes.
In sharia mortgages, the bank will buy the house first, then sell it to the customer at an agreed price. The main advantage is the installments that remain the same until the end of the term, so they are not affected by interest rate fluctuations. This provides peace of mind for customers who want to pay installments with a consistent amount.
4. Refinancing Mortgage: A Solution for Lighter Installments
If you feel that the burden of your ongoing mortgage installments is too heavy, refinancing mortgages can be a solution. Through this scheme, customers transfer the remaining mortgage loan from the old bank to a new bank with lower interest.
That way, the total monthly installments can be lighter, and you can reorganize your finances better. Refinancing mortgages are suitable for those who want to reduce their installment burden without having to sell their house.
5. Tiered Installment Mortgages: Relief at the Beginning of Installments
This type of mortgage is designed to provide relief at the beginning of the payment period. Customers only pay part of the principal installments until the third year, so that the installment burden is lower during that period.
After the third year, the installments will return to normal. Tiered installment mortgages are suitable for individuals or young families whose income is expected to increase in the future.
6. KPR Take Over: Moving to a More Profitable Bank
KPR take over allows customers to move their home loans from one bank to another that offers better conditions. For example, if the new bank offers lower interest rates or more attractive facilities, you can take advantage of KPR take over to save on installment costs.
This process usually involves a re-evaluation by the new bank and payment of the remaining principal at the previous bank.
7. KPR Purchase: Buying a New Home with Easy Credit
KPR purchase is the most common and best-known type of KPR. Customers apply for a loan to buy a new home, and the house becomes the collateral for the credit.
In this scheme, the bank provides funds to the developer or seller of the house, while the customer pays off the loan in the form of monthly installments.
KPR purchase is often equipped with certain promotions, such as interest discounts or down payment subsidies, especially for houses built by developers who collaborate with banks.
8. KPR Duo: Home and Other Property Credit
KPR duo is a type of financing that covers more than just a house. With this mortgage, customers can get credit to buy apartments, shophouses, or even other items such as furniture or vehicles.
Although rarely offered, the duo mortgage provides flexibility for those who need multi-functional financing in one credit scheme.
Conclusion
Understanding the various types of mortgages available helps you choose a product that suits your needs and financial capabilities.
Whether you prioritize low interest rates, sharia principles, or financing flexibility, Mandiri Mortgage offers various mortgage options that can be adjusted to your conditions.
By choosing the right type of Mandiri Mortgage, you can have your dream home without too much financial burden while enjoying a financing scheme that suits your needs.
