Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fathan Qorib, Robert Sidauruk
Bank Indonesia (BI) has officially changed the provisions covering Loan to Value (LTV) and Financing to Value (FTV) ratios on home loan mortgages (Kredit Pemilikan Rumah / KPR) and condominium loan mortgages (Kredit Pemilikan Rumah Susun / KPRS) on loans by commercial and sharia banks.
According to Difi Johansyah, Executive Director of BI’s Communication Department, the new provisions emphasize the quantum of LTV and FTV to be covered by banks.
He further added that details of the provisions have been incorporated into BI Circular Letter No. 15/40/DKMP (Regulation).
For stand along houses of 70 square meters or more, the Regulation sets a LTV of 70 percent for first-home buyers, 60 percent for second home buyers, and 50 percent for third-home buyers decreasing in increments of 10 percent for each additional house purchase.
For stand along houses of 22-70 square meters, no LTV applies to first-home buyers. However, an LTV of 70% applies to second-home buyers of this type of property and 60 percent for third-home buyers decreasing for additional purchases as is the case for houses of 70 square meters.
Meanwhile, for apartments and condominiums, the LTV is set at 80 percent for first time buyers, 70 percent for second time buyers, and 60 percent for third time buyers again decreasing in increments of 10 percent for each additional purchase.
First time creditor applicants for home based shop (rumah toko) and home based office (rumah kantor) are free from LTV restrictions. However, an LTV of 70% and 60% will apply for second and third time purchases respectively.
For financing through sharia banks, first time KPR applicants for housing of more than 70 square meters will be subject to an FTV of 90%, 80% for second time applicants and 70% for third time applicants.
Similar FTV percentages are also applied to KPR applicants for housing of 22-70 square meters, however, a difference is that first time applicants for this type of property will not be subject to any LTV.
First time applicants of KPRS for housing of 70 meters or above will be subject to FTV of 90%, 80% for second time applicants and 70% for third time applicants and so on.
No FTV will be imposed for first time applicants of KPRS or housing of 22-70 square meters, and home based shops and home based office. The FTV, however, will apply to second time and third time KPRS applicants set at 80% and 70% respectively.
Despite criticism, Difi believes the Regulation will help to provide stability to the national financial system by strengthening prudential principles that banks must abide by when granting loans.
Difi further explained that the Regulation will not burden people with lower to middle incomes in accessing decent homes through banks loans. In fact, the Regulation is designed to protect consumers in the property sector.
“The Regulation does not apply for credit loans or financing services as part of the Government’s housing program,” asserted Difi.
(hot/kc)
Fathan Qorib, Robert Sidauruk
Bank Indonesia (BI) has officially changed the provisions covering Loan to Value (LTV) and Financing to Value (FTV) ratios on home loan mortgages (Kredit Pemilikan Rumah / KPR) and condominium loan mortgages (Kredit Pemilikan Rumah Susun / KPRS) on loans by commercial and sharia banks.
According to Difi Johansyah, Executive Director of BI’s Communication Department, the new provisions emphasize the quantum of LTV and FTV to be covered by banks.
He further added that details of the provisions have been incorporated into BI Circular Letter No. 15/40/DKMP (Regulation).
For stand along houses of 70 square meters or more, the Regulation sets a LTV of 70 percent for first-home buyers, 60 percent for second home buyers, and 50 percent for third-home buyers decreasing in increments of 10 percent for each additional house purchase.
For stand along houses of 22-70 square meters, no LTV applies to first-home buyers. However, an LTV of 70% applies to second-home buyers of this type of property and 60 percent for third-home buyers decreasing for additional purchases as is the case for houses of 70 square meters.
Meanwhile, for apartments and condominiums, the LTV is set at 80 percent for first time buyers, 70 percent for second time buyers, and 60 percent for third time buyers again decreasing in increments of 10 percent for each additional purchase.
First time creditor applicants for home based shop (rumah toko) and home based office (rumah kantor) are free from LTV restrictions. However, an LTV of 70% and 60% will apply for second and third time purchases respectively.
For financing through sharia banks, first time KPR applicants for housing of more than 70 square meters will be subject to an FTV of 90%, 80% for second time applicants and 70% for third time applicants.
Similar FTV percentages are also applied to KPR applicants for housing of 22-70 square meters, however, a difference is that first time applicants for this type of property will not be subject to any LTV.
First time applicants of KPRS for housing of 70 meters or above will be subject to FTV of 90%, 80% for second time applicants and 70% for third time applicants and so on.
No FTV will be imposed for first time applicants of KPRS or housing of 22-70 square meters, and home based shops and home based office. The FTV, however, will apply to second time and third time KPRS applicants set at 80% and 70% respectively.
Despite criticism, Difi believes the Regulation will help to provide stability to the national financial system by strengthening prudential principles that banks must abide by when granting loans.
Difi further explained that the Regulation will not burden people with lower to middle incomes in accessing decent homes through banks loans. In fact, the Regulation is designed to protect consumers in the property sector.
“The Regulation does not apply for credit loans or financing services as part of the Government’s housing program,” asserted Difi.
(hot/kc)