A Beginner's Guide to Applying for a Mortgage in Indonesia




Proper housing is the right of every human being, and owning your dream house or apartment is not impossible with a mortgage. While high property prices may be overwhelming for those looking to purchase property in cash, mortgage solutions are a great help. This article will provide guidance for beginners who are looking to apply for a mortgage, so that you can realize your dream of owning a home more easily.

Estimate your financial capability

Before applying for a mortgage, you need to understand that you will be in debt to the bank for a long period of time. So, make sure that you are financially capable of fulfilling this requirement.

Generally, the recommended mortgage installment is no more than 30-40% of your total monthly income.

Choose a bank with a suitable mortgage program

Each bank offers different mortgage schemes, so don't rush into applying for a mortgage. Take time to research the mortgage programs and requirements of various banks before you choose the right one for you.

Some things to look out for when studying the available mortgage programs:

Competitive interest rates

Currently, subsidized mortgage schemes have a fixed interest rate of 5%. For non-subsidized mortgages, the average fixed interest rate offered by major banks ranges from 6% to 8% for a fixed tenure of the first 1-5 years.

Maximum installment period

The mortgage installment period, commonly referred to as tenor, generally varies between 5 to 30 years, depending on the bank's policy and the applicant's financial capability. If you have estimated your financial capability, you will know which tenure is right for you.

Administration fee

Apart from the down payment and mortgage installments, there are also administrative fees that you will have to pay. Ask your chosen bank if there are any additional fees such as notary fees, insurance, or property appraisal fees.

Prepare the required documents

Customers of any bank will be required to submit mandatory documents to apply for a mortgage. Make sure you have the following documents:

  • National Identification Card and Family Card
  • Tax Identification Number
  • Pay slip or income certificate
  • Bank statements for the last 3 to 6 months
  • Employment letter or business certificate

Make sure these documents are complete to speed up the application process.

Apply for a mortgage

After choosing a bank, apply for a mortgage by filling out the necessary forms and submitting the required documents. The bank will conduct a verification process, including checking your credit history.

Then, the waiting period ensues. The bank will appraise the property to determine its market value, as well as check all the documents and requirements. If everything is in order, the bank will approve the loan.

If your mortgage is approved, the last step is to sign the loan agreement in front of a notary. After that, you can start making installments for your home according to the terms.

Mortgage at Nobu Bank

As one of the banks that cares about the needs of the community, Nobu Bank also offers Nobu KPR, our mortgage services with competitive interest rates and an easy process. We are present in almost 100 housing and apartment projects across Indonesia.

Nobu Bank is ready to help you own your dream home with installments that are within your means.

For more information about Nobu Bank's mortgage services, visit our official website or contact our nearest branch.