When financial conditions are not sufficient to buy houses and land on cash, then one of the best choices people often make is to apply for a KPR (Home Ownership Credit). KPR aims to make it easier for people to have occupancy that meets minimum standards. Also read: Tips on buying a home on credit >>
However, along the way, not a few experienced problems or felt that they were disadvantaged by the KPR agreement they had agreed to. Often this problem arises related to the arrears that must be paid by debtors (installers).
There are also those who have to pay for installments that swell due to increased floating bank interest. Debtors’ inaccuracy in understanding all the violations committed can expose them to adverse sanctions.
Let’s Get To Know These Various Types of KPR
So that you don’t face these various problems. so it is better to know in detail the types of mortgages in Indonesia in advance.
- Conventional KPR
In Indonesia, in general, banks have conventional KPR products. The interest system stipulated is floating interest, which means that credit interest can change at any time according to the policy set by Bank Indonesia. This fluctuating interest becomes an obstacle in predicting the number of installments to be paid until the time of repayment.
In addition, some conventional KPR products also impose rules that do not allow debtors to pay their installments within a certain time limit. One of the highlights of conventional mortgages is that the installment amount in the first year is usually very low. This allows you to focus more on working to raise money in the first years because you are not stressed by a large credit burden.
- Sharia KPR
As the name implies, which is based on Islam, Islamic mortgage loans do not recognize the term interest system. The system is that banks that offer Sharia KPR will buy houses according to what the debtor wants. Then, the house purchased by the bank will be sold again to the debtor through a credit program. Of course, the price of the house being sold is higher, so that the bank benefits from the difference between buying and selling the mortgage applicant (debtor).
In the regulations, there is a principle of honesty (openness) that must be prioritized. Well, usually, banks will tell you honestly how much the price of the house they bought, how much profit margin will be taken, what price after adding this margin, and how many installments each month the debtor must pay.
- Subsidized KPR
For people with low income or abbreviated as MBR who do not yet have a proper house, they can take advantage of the subsidized KPR housing ownership program. One of the conditions is people who earn less than 4 million per month. Because it is intended for low-income residents, the installment system uses fixed interest until the end of the tenor.
- Multipurpose KPR Multipurpose
KPR is a home ownership loan that can also be used to obtain fresh funds when there are problems in repaying the credit. Multipurpose KPR can generally be divided into two types, namely KPR Multipurpose Takeover and KPR Multipurpose TopUp. The first type is credit that can be transferred from one bank to another with the aim of obtaining lighter credit installments. Meanwhile, KPR Multipurpose TopUp aims to be used as collateral to obtain extra funds (topup) at the same bank.
- KPR Agunan
If you have property assets that can be pledged as collateral, then it’s a good idea to choose KPR Agunan. This is because this type of mortgage has a lower risk than conventional mortgages. By providing guarantees to the bank, you can also get home loans and business loans or consumptive loans at the same time, depending on your financial capacity and the needs of your life.
Well, that’s a glimpse of the various types of mortgages that can be your choice. Choose wisely according to your financial condition.