Selasa, Juli 3, 2018

BI to Ease LTV Ratios for Mortgage-Loan Facility Down Payments

Bank Indonesia (“BI”) is about to issue a new regulation that aims to relax provisions relating to Loan-to-Value (“LTV”) ratios for mortgage-loan facility down payments (“KPR”) by giving banks the flexibility to set their own LTV ratios.
Banks are currently required to comply with the LTV ratios which are set under Regulation of BI No. 18/16/PBI/2016 (“Regulation 16/2016”). For example, down payments amounting to 15% of the total KPR value (for conventional banks) or 10% of the total KPR value (for sharia banks) must be made by buyers for first-time acquisitions of landed houses (rumah tapak).
It is predicted that the upcoming regulation will grant banks the authority to set their own LTV ratios, even if this amounts to 0% of the relevant KPR value if this is deemed feasible by banks based on their risk-management policies.
However, this newly permitted flexibility in terms of the setting of LTV ratios will only be available to banks which have low non-performing loan rates (i.e., <5%).
For further on Regulation 16/2016, see ILB No. 2959.
For more on this story, see Hukumonline: “Aturan Relaksasi, Perbankan Bebas Tentukan Uang Muka KPR Asalkan...”

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Bank Indonesia (“BI”) is about to issue a new regulation that aims to relax provisions relating to Loan-to-Value (“LTV”) ratios for mortgage-loan facility down payments (“KPR”) by giving banks the flexibility to set their own LTV ratios.
Banks are currently required to comply with the LTV ratios which are set under Regulation of BI No. 18/16/PBI/2016 (“Regulation 16/2016”). For example, down payments amounting to 15% of the total KPR value (for conventional banks) or 10% of the total KPR value (for sharia banks) must be made by buyers for first-time acquisitions of landed houses (rumah tapak).
It is predicted that the upcoming regulation will grant banks the authority to set their own LTV ratios, even if this amounts to 0% of the relevant KPR value if this is deemed feasible by banks based on their risk-management policies.
However, this newly permitted flexibility in terms of the setting of LTV ratios will only be available to banks which have low non-performing loan rates (i.e., <5%).
For further on Regulation 16/2016, see ILB No. 2959.
For more on this story, see Hukumonline: “Aturan Relaksasi, Perbankan Bebas Tentukan Uang Muka KPR Asalkan...”

......