Housing has become one of the primary needs that must be fulfilled, especially for those who have and have plans to start a family. However, in reality, over time house prices continue to increase every year. The need to own a house becomes increasingly difficult to achieve with its nominal price that continues to rise.
As a solution to this problem, the government holds a subsidized housing mortgage program. Subsidized housing mortgage or credit is a program provided by the government specifically for low-income communities. This program allows people to buy houses with affordable down payments and installments.
So, what are the requirements needed when you want to apply for a subsidized mortgage? Come on, read the article below thoroughly to get further information.
Key Takeaways:
- Home Ownership Credit (KPR) is a credit facility provided by banking to individual customers who will buy or renovate a house.
- KPR has various types, including FLPP, SBUM, Tapera, and BP2BT.
- KPR houses have many advantages, namely: building quality is guaranteed to be the best, house prices are relatively affordable, KPR houses can be occupied immediately, low installments and long tenors. Bank BTN opens opportunities for the community to apply for Home Ownership Credit (KPR) quickly and easily through the BTN Subsidized KPR program.
- BTN offers down payments and interest rates with relatively low amounts.
What is a Subsidized Housing Mortgage?
If you want to buy a house with low installment costs and interest rates, then a subsidized housing mortgage can be the solution. According to 99.co, what is meant by subsidized housing mortgage is home ownership financing for low-income communities by the government and the Ministry of Public Works and Public Housing (PUPR).
This program is launched specifically for people who want to own a private house with low interest rates and light house installments. The down payment that must be given for subsidized housing mortgage on average is only 1%. The interest rate offered is also very low, which is 5% fixed for a maximum period of 20 years. Quite interesting, right?
The types of houses you can choose are landed houses for a maximum income of Rp 4 million, and apartments for a maximum income of Rp 7 million.
Subsidized vs Non-Subsidized KPR, What's the Difference?
In the previous point, it has been explained that subsidized housing mortgage is dedicated by the government for low-income communities so they can still own their own housing. Well, the opposite of Subsidized KPR, non-subsidized KPR is a credit program without government intervention and is provided by private banks and state-owned banks.
According to Cariproperti.com, the difference between the two types of KPR also lies in the type and price of the house. For subsidized KPR, the type and price of the house must follow government regulations, for example like Type 36 and have a price of no more than 250 million at this time. While non-subsidized KPR has no limitations on house type and house price, as long as these two points are in accordance with the relevant bank assessment provisions.
The next difference is in the application requirements. However, this point will be discussed further after this, yes.
Types of Subsidized KPR
KPR itself has several types according to the recipient and interest rate level, which are divided into subsidized KPR, conventional KPR, sharia KPR, and in-house KPR. According to 99.co and huni.id, subsidized KPR is also further divided into several types, namely FLPP, SBUM, and Tapera. Here is the further explanation.
- FLPP
- SBUM
- Tapera
- BP2BT
FLPP stands for Housing Financing Liquidity Facility. This program offers housing financing facilities carried out by the Ministry of Public Works and Public Housing. This program is very useful to help people who have low income, so they can still access KPR with flat interest installments. The advantage of FLPP is having a fixed interest of 5%, long tenor time of 10-20 years, free insurance premiums, free VAT tax payments, light booking fees, and affordable installments (around 900,000/month)
The second type is SBUM or Down Payment Assistance Subsidy. This type of KPR is a government subsidy given to low-income communities in order to fulfill part or all of the down payment. With this program, people can get down payment subsidies with certain requirements. It turns out that SBUM and FLPP are related to each other. If you are a recipient of FLPP KPR, then automatically you will also receive this SBUM.
People's Housing Savings (Tapera) is savings carried out by participants periodically within a certain period of time that can only be used for housing financing and/or returned along with the results of its accumulation after participation ends. KPR Tapera is the result of cooperation between the Management Agency (BP) Tapera with Bank BTN. The payment scheme itself is divided into three, namely for those earning below 4 million with a 30-year tenor, then 4-6 million with a 20-year tenor. Although the government's focus is providing housing financing assistance to low-income communities, the government also provides assistance to civil servants. Both are Subsidized KPR, but with different requirements and features.
Savings-Based Housing Financing Assistance (BP2BT) is a government assistance program provided to MBR who already have savings. BP2BT is a non-FLPP subsidized KPR. BP2BT funds are given once for down payment for house purchase or part of the cost of self-help house construction. The amount of BP2BT funds given to MBR is determined from the income of the target group which is divided into three regional zones and the value of the house or Budget Plan (RAB).
Advantages of Using KPR
Of course, there will be advantages that you get if you buy a house with KPR. Bisnis.tempo.co has explained the advantages, some of which are:
- Building Quality Guaranteed to be the Best
- House Prices Relatively Affordable
- KPR as Ready-to-Occupy House
- Low Installments and Long Tenor
The Ministry of Public Works and Public Housing (PUPR) has guaranteed direct supervision during the construction process of subsidized houses carried out by developers. This is done to ensure that every stage of construction runs according to standards set by the government. In fact, developers are not allowed to arbitrarily join this government program without meeting certain requirements. One of the mandatory requirements that must be met by developers is having a Certificate of Functional Worthiness (SLF). This certificate is issued by the government after going through various stages of strict verification and assessment. SLF is proof that the building has met all applicable technical and administrative requirements, so it is suitable to be occupied by the community.
The average type of government subsidized houses available in the market usually has type 30 and type 36, each standing on land of about 60 square meters. The design of this subsidized house is generally designed with efficiency so that every corner of the house can be utilized optimally. The price of this subsidized landed house or apartment is adjusted to the decision of the PUPR Minister Number 242/KPTS/M/2020 which regulates differences in house prices according to the construction area. This regulation is made to ensure that subsidized house prices remain affordable for people in various regions, taking into account economic factors and construction costs in each region.
Function subsidies are indeed designed to support the practicality and livability of the community. This program is included in the Home Ownership Credit (KPR) scheme which is designed as a ready-to-occupy house, not an indent type. The government is also committed to ensuring that the community will not be billed for installment money by unscrupulous developers before the KPR housing unit is finished being built and ready to be occupied. This is very important to provide protection to consumers so they do not experience losses or inconvenience during the subsidized house purchase process.
Installments and tenors are the things that most need to be considered carefully when deciding to take a house with a subsidized Home Ownership Credit (KPR) scheme. The consequence of taking subsidized KPR houses is not only related to the amount of installments that must be paid every month, but also a fairly long payment period. For installments set every month, subsidized KPR houses offer very low prices compared to private landed houses or apartments on the market. On average, those taking subsidized houses from the government only need to pay around Rp 1 million per month. This amount is much more affordable for many low to middle-income families, so it can reduce the financial burden in meeting housing needs.
Subsidized KPR Application Requirements
According to cnbcindonesia.com, here are some documents that must be prepared if you want to buy a house with a subsidized KPR scheme:
- Must be an Indonesian Citizen and at least 21 years old
- Credit application with applicant and spouse passport photo
- Photocopy of e-KTP, KK, marriage/divorce certificate, taxpayer identification number (NPWP), and registered at the Directorate General of Population and Civil
- Registration data center Latest pay slip or Income Certificate (SKP) and photocopy of Permanent
- Employee Appointment Decree or Work Certificate Trade Business License (SIUP), Company Registration Certificate (TDP), and Domicile Certificate as well as Financial Statements for the last 3 months (for self-employed applicants)
- Photocopy of practice license (for professional applicants)
- Photocopy of bank statement or savings for the last 3 months
- Statement letter of not yet owning a house
- Statement letter of never receiving subsidies for home ownership.
Tips That Can Be Done When Taking Subsidized KPR Houses
Adira.co.id provides several tips for taking subsidized KPR houses that you need to pay attention to, including:
- Find Information on Subsidized KPR Programs
- Plan Your Financial Budget
- Monitor Current Information Developments
The government usually provides various types of subsidized KPR programs designed to meet community housing needs with different terms and conditions. These programs can include subsidized KPR for landed houses, apartments, or even special programs for certain areas that need special attention. Therefore, it is important to understand each type of program offered so you can choose the one most suitable for your condition.
Before taking a subsidized Home Ownership Credit (KPR), it is very important to make a clear and detailed financial plan. This step is crucial so that you can manage finances well and ensure that this long-term commitment does not burden your financial condition. Start by recording all sources of income you have, including salary, additional income, or other income sources. Then, make a complete list of all your monthly expenses, both fixed such as electricity bills, water, transportation, and basic needs, as well as variable expenses such as entertainment, eating out, and others. Next, make sure you have sufficient fund preparation to pay the down payment which usually ranges from 10% to 30% of the house price. To be safer, you should also have an emergency fund that can be used to face unexpected situations, such as job loss or other emergency conditions.
These changes can include various aspects, such as adjustments to maximum income limits, changes in administrative requirements, or revisions to the amount of subsidies provided. In addition, the government can also introduce new programs or stop existing programs based on evaluation and community needs. Therefore, keeping yourself informed is the key to optimally utilizing the subsidized KPR program.
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