Having your own residence is the dream of many people, but often the biggest challenge is getting affordable financing. Subsidized KPR (Home Ownership Credit) comes as a solution to realize that dream, especially for lower middle-income communities.
In this article, we will discuss a complete guide about subsidized housing KPR, from application requirements, to tips that can help you get a subsidized house with installments that suit your needs. With the right information, you can more easily understand this program and prepare the necessary steps to own your dream home.
Key Takeaways:
- Subsidized KPR (Home Ownership Credit) is a subsidized housing financing program aimed at helping low and middle-income communities own homes.
- Requirements for applying for subsidized KPR are seen from age, income, employment, as well as required documentation.
- Tips for KPR approval are to prepare requirement documents, ensure financial capability, apply for KPR to the right bank, and follow the KPR requirement process wisely.
Definition of Subsidized KPR Program
Home Ownership Credit (KPR) is a housing financing program from the Government to facilitate low-income communities (MBR) in owning livable houses. This program is provided by the Government through financial institutions such as banks, with the aim of increasing community accessibility to decent housing.
The concept of subsidized KPR is that the Government provides assistance in the form of interest subsidies, which makes KPR installments more affordable. With this scheme, prospective buyers can buy houses with lower down payments (DP) and fixed interest rates, thereby easing their financial burden.
Types of Subsidized KPR Financing
With the existence of various types of subsidized housing financing, it is hoped that the community has more choices in owning decent housing. Here is an explanation of the types of subsidized KPR financing, which is reported from Kompas, on June 7, 2022, including:
1. FLPP (Housing Financing Liquidity Facility)
Housing financing liquidity facility is a subsidized housing financing program aimed at low-income communities (MBR). In this scheme, the Government provides interest rate subsidies at around 5% fixed for a certain period of time, low DP starting from 1%, KPR that can be paid in installments up to 20 years, and free from Value Added Tax (VAT) as well as free insurance premiums.
2. SSB (Interest Difference Subsidy)
This interest difference subsidy program provides subsidies on the interest difference between conventional KPR and lower interest rates. This is designed to help people who qualify so that their installments are lighter. Between FLPP and SSB are the same, there is no difference in benefits that will be received.
3. SBUM (Down Payment Assistance Subsidy)
Down payment assistance subsidy is a program that provides assistance for part or all of the down payment for acquiring subsidized houses for MBR. With this subsidy, prospective buyers do not need to prepare a large DP, making it easier to start the subsidized home ownership process.
4. BP2BT (Savings-Based Housing Financing Assistance)
BP2BT is a program that encourages people to save before buying subsidized houses. Through this program, the Government provides financing assistance for those who have certain savings. In this way, it is hoped that people are more financially prepared when applying for KPR.
Differences Between Subsidized KPR Houses and Non-Subsidized Houses
Here are the differences between subsidized houses and non-subsidized houses:
1. Interest Rate
Subsidized KPR: Has a lower to fixed interest rate, due to subsidies from the Government. Non-subsidized KPR: Interest rates tend to be higher and can vary depending on bank policies.
2. Down Payment
Subsidized KPR: Requires a lower down payment, starting from 1% to 5%. Non-subsidized KPR: Generally requires a higher down payment, usually 10% or more of the house price.
3. Buyer Criteria
Subsidized KPR: Reserved for MBR, with certain income limits. Non-subsidized KPR: Open to all groups without income limits.
4. Type of House
Subsidized KPR: Only applies to houses that are registered in the subsidy program and usually simple types. Non-subsidized KPR: Can be used for various types of houses, including luxury houses.
5. Application Process
Subsidized KPR: The application process may be stricter with verification from the Government because subsidized KPR receives direct support and subsidies from the Government. Non-subsidized KPR: The process is more flexible, depending on the policies of each bank.
Requirements and Conditions for Home Ownership Credit (KPR) Application
Subsidized KPR Home Ownership Requirements:
- Indonesian Citizen (WNI).
- Applicant must be at least 21 years old.
- Applicant must have monthly income below a certain limit determined (varies depending on Government and bank policies).
- Applicant must have permanent employment, either as an employee in a company, civil servant, or business owner who generates fixed income.
- Applicant and spouse do not own a house.
- Have a Taxpayer Identification Number (NPWP) and registered Population Identification Number (NIK).
Required Documents:
- Identity Card (KTP) of applicant and spouse
- Family Card (KK)
- Taxpayer Identification Number (NPWP), has submitted Annual Tax Return (SPT), and paid Income Tax (PPh).
- Pay slip or proof of income for the last 3 months
- Bank statement for the last 3 months
- And other documents as requested by the bank as subsidized housing requirements
Subsidized KPR House Application Process
Here are the steps in the Subsidized KPR application process:
1. Document Preparation
Prepare all required documents, such as KTP, NPWP, pay slip, work certificate, and bank account. Make sure documents are complete to speed up the process.
2. Selection of Subsidized House
Choose a subsidized house that meets the requirements. Make sure the subsidized house is registered in the subsidy program and meets the established criteria.
3. Application to Bank
Submit a KPR application to a bank that provides subsidized KPR services. Then fill out the form and submit the documents required to buy a house.
4. Verification Process
The bank will verify your documents and personal data. They will also check your financial condition and credit history.
5. Property Appraisal
The bank will conduct an appraisal of the subsidized house value to ensure that the subsidized house price matches the market value.
6. KPR Approval
After all verification and appraisal processes are complete, the bank will make a decision. If approved, you will receive a home ownership credit application approval letter.
7. Credit Agreement
If your credit application is accepted, the next step is to sign the credit agreement. You and the bank will agree on the loan terms.
8. Fund Disbursement
After the credit agreement, the bank will disburse the KPR funds for the purchase of subsidized houses. These funds will usually be channeled directly to the developer or seller of subsidized houses.
9. Installment Payment
Start installments according to the agreement in the credit agreement. Make sure to pay installments on time to avoid problems in the future.
Tips for Subsidized Housing KPR Application to Be Approved
Here are some tips so that your subsidized KPR application is approved:
1. Prepare Documents Completely
Make sure all required documents, such as KTP, NPWP, pay slip, and work certificate, are complete and valid. Neat and complete documents will speed up the verification process.
2. Check Credit History
Check and improve credit history before applying for subsidized KPR. Avoid arrears or late payments, as this can affect the bank's assessment.
3. Choose the Right House
Choose a subsidized house that meets the subsidized KPR requirements and fits your budget. Make sure the house is registered in the subsidy program.
4. Ensure Financial Capability
Have sufficient savings to meet the DP and other costs related to the purchase of subsidized houses, such as notary fees and insurance. Calculate your financial ability to pay installments. Don't force yourself to take a loan that is larger than your monthly payment ability.
5. Apply for KPR to the Right Bank
Choose a bank that has a subsidized KPR program and good reputation. Before applying for credit, compare interest rates and terms offered by several KPR provider banks.
6. Follow the KPR Application Requirement Process
The KPR application process takes time, between 2 to 6 weeks, depending on the completeness of documents required during the KPR application process and the bank examination process. Follow each step patiently and don't hesitate to ask the bank if anything is unclear.
By understanding the process, requirements, and tips for applying for subsidized KPR, you are now better prepared to realize your dream of owning decent housing. Hopefully this information helps you take the right steps for the subsidized home ownership application process.
Interested in starting to own your dream house? Visit the BTN website to find various information and subsidized KPR services that suit your needs. Get complete information and guidance in your KPR application process. Realize your home dream today with BTN.co.id.
