Complete Guide to Applying for Sharia Mortgages in Islamic Banks

The need to have a house is a primary need. As the concept in basic human needs, namely clothing, food and shelter. Houses fall into the category of boards. However, the price of a very expensive house makes many people fail to buy a house and eventually choose to rent. Even so, that does not mean impossible to have a house. You can use the facility in the form of Sharia Home Ownership Credit (KPR Syariah) to be able to own a house.

Using Sharia mortgage facilities will make it easier for you to have a house and more importantly, blessing because you are free from usury.

Also Read: The Sin of Islam in Islam

What is Sharia Mortgage?


Sharia Home Ownership Credit is a system of installment of a house with sharia principles. Sharia mortgage facilities are usually issued by Islamic banking.

Some Shariah banks that issue this product include BRI Shariah, BNI Shariah, BCA Shariah and Shariah Bukopin Bank.

Sharia Mortgage Mechanism

The mechanism of Sharia mortgage products is basically the same as non-cash buying and selling in general. There are several types of contracts adopted for Sharia KPR products, one of which is murabaha . In this agreement, Bank Syariah as a product provider will notify customers who want to own a house about the price of the house along with the margin that will be taken by the bank. After that the customer will agree on the installment. The size of the installment is determined by how big the value of the house and how long the tenure is taken. The longer the tenure is taken, the lower the installment amount.

A practical example is as follows:

The Ciba is an ASN with qualified salaries and benefits. He wants to buy a house. Because he was concerned about halal matters, he chose Sharia mortgage products. He came to the Syariah Bank and chose to use a murabaha scheme He chose a house with a purchase price of Rp 200 million. For a period of 5 years, Islamic banks take profit / margin of Rp 100 million. Then the selling price of the house to the customer is Rp. 300 million which must be paid in installments for 5 years. If divided into a month, then Rp. 300 million / 60 months = Rp. 5 million / month. That is, Ciba must repay the house for 5 years amounting to Rp 5 million.

Another covenant that is also used in Sharia Mortgages is musyarakah mutanaqishah. This is a contract system where there is cooperation between two or more parties for ownership of an item or asset. This collaborative process will decrease the ownership of one party until the assets become the sole ownership of the other party. In the Sharia KPR system, the proposed house becomes a shared property between the customer and the Islamic bank. Then the customer installments the house until the value of ownership fully belongs to the customer.

Also Read: A Complete Guide to Property Investment for Beginners

Difference between Sharia Mortgages and Conventional Mortgages

Then, what is the fundamental difference between Sharia mortgages and conventional mortgages?

When viewed from the side of the actual requirements Sharia Mortgages and Conventional Mortgages have requirements that are not much different.

The fundamental difference between the two types of mortgages is the contract which will then explain related to the calculation of liabilities. In conventional mortgages the contract uses an interest-bearing loan agreement. So that it will change at any time to follow the BI interest rate. Another case, with Islamic mortgages that do not take into account interest as a calculation of its obligations. Because the contract used is a sale and purchase agreement in which the Islamic Bank takes a margin from the purchase of non-cash houses that it offers.

Sharia KPR Filing Process

To start a Sharia Mortgage there are several requirements that you must prepare. Each bank usually has different requirements that must be met. However, in general the most important requirement is that you already have an income.

Here are some requirements related to the ability to do mortgages so they can apply for mortgages including:

1) Permanent employees with at least 2 years work experience

2) Self-employed with a minimum of 3 years business experience

3) Professionals with practice experience of at least 2 years

4) The minimum age at the time of financing is 21 years and the maximum retirement age for employees or 65 years for entrepreneurs and professionals

5) Not included in the List of Problem Funding

6) Meet the requirements as a Life Insurance policy holder

Although not all Islamic banks set such conditions, in general these six conditions will measure how well you can use the Sharia mortgage facility. These requirements are to minimize defaults in the process of running a Sharia KPR.

The next step is to determine what scheme you will choose in the Sharia mortgage process. You can choose murabahah , musyarakah mutanaqishah or Ijarah Muntahiya bit Tamlik schemes .

Finally, you determine the price of the house to be purchased along with the installments and tenor of the installments that you can afford. Choose the amount per month according to your ability.

Also Read: A Complete Guide to Sharia Insurance Before Choosing


Thus the explanation of the Sharia KPR, which hopefully with this explanation will be more enlightening for you to be able to immediately own a house in an easy way and of course a blessing.


by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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