Taking a KPR House Can Make You Broke, Myth or Fact?

Kapanlagi.com - In order to realize the dream of having their own home, KPR or home ownership credit is often chosen as one of the popular options. Especially now that property prices are soaring and the availability of housing land is limited. Want to find a strategically located house, but most of them are exorbitantly priced, which is obviously frustrating.

But, many people say that taking a house with the KPR system can make you broke because of the high costs. Is it true? Take a look at the actual facts so you don't fall into KPR myths!

Find a House that Fits Your Ability

The first thing you must do before deciding to take a KPR is to find a house with a price that fits your ability. This step can help make your KPR planning more realistic and increase the chances of getting approval from the bank.

It is also important to know the maximum price of a house that can be purchased according to your ability. According to one of the leading financial planners in Indonesia, the ideal maximum amount a person can spend on buying a house is 5 times their annual salary, so that during the KPR process it won't make you broke.

So, for example, if the income for a fresh graduate who just got their first job is Rp5 million. So, the income in 1 year is about Rp60 million. If multiplied by 5 years, it means the maximum price of a house that can be purchased is Rp300 million.

Pay off Other Installments that Can Burden

Paying off mortgage installments consistently over a long period of time is definitely a heavy responsibility. To avoid financial difficulties in other personal matters, check the amount of other ongoing installments, such as paylater, credit cards, or other loans if any.

As much as possible, identify in advance all the history of loan facilities, both with collateral (Secured Loan) such as Motor/Car Ownership Credit (KPM) or without collateral (Unsecured Loan) such as Credit Cards, Unsecured Loans, or Paylater, by making regular installment payments or by settling some loan facilities first so as not to burden and cause financial difficulties.

Prepare Down Payment and Calculate Other Additional Costs

This is one of the most common causes of financial difficulties due to lack of preparation. Ideally, when taking out a mortgage, you should already have savings in a certain amount that can be allocated for the down payment. The amount of the down payment itself varies, depending on the policies and programs of each Developer, some determine the down payment to be 5%, 10%, 15% of the selling price or even 0% (specifically for subsidized houses). So it can be estimated beforehand.

In addition to preparing the down payment, it is also important to prepare funds for other costs, such as Bank Provision and Administration Fees, Life Insurance Premiums and Fire Insurance, Appraisal Fees, Notary Fees, approximately around 5% of the mortgage ceiling. So prepare the costs that need to be prepared at the beginning before submitting the mortgage application.

Learn the Offered Mortgage Rules, Including the Interest Rate

This is one of the common causes of financial difficulties in mortgages, which is not studying the offered mortgage rules. The amount of installments usually approved by the Bank should not exceed average 40% - 50% of income or Take Home Pay per month, because financial analysis will be based on tiering of Salary/Take Home Pay.

In addition, also pay attention to the applied interest rate scheme. Some banks offer a flat interest rate so that the amount of installments will remain the same until it is paid off. However, there are also banks that provide a floating interest rate, so the amount of installments will be adjusted according to the increase in Bank Indonesia's interest rate.

Now, this often misunderstood floating interest rate is what makes it seem like mortgage installments keep soaring every year. However, if understood and planned properly, it can be easily overcome. And even if you are already trapped with high soaring house installments, there is still a way out that can be chosen. One of them is by switching to Home Ownership Financing (PPR) iB Danamon Syariah! What is it?

So, iB PPR from Danamon Syariah is a financing facility offered by KPR Danamon to customers to transfer their mortgage from another bank to Bank Danamon. The outstanding or remaining principal financing from the previous bank will be transferred to Bank Danamon.

Because according to Sharia principles, this financing can be done with the principles of Joint Capital Agreement (Musyarakah Mutanaqisah/MMQ) and Lease Ending with Ownership (IMBT).

For those who don't know, MMQ is a financing agreement with the principle of joint capital between customers and banks for property purchases. Installment payments are made by Customers to gradually purchase a portion of the bank's capital so that the Customer's capital portion will increase and at the end of the financing, the property will fully belong to the Customer.

Meanwhile, the IMBT contract is a financing agreement with a lease agreement between the IMBT object owner (Bank) and the lessee (Customer). Eventually, the ownership of the IMBT object will be transferred from the Bank to the Customer according to the agreement within the financing.

This take over facility is not only applicable for home purchase financing, but can also be used to take over apartment ownership financing (PPA) and Multi-Purpose Financing (PMG), and so on.

As long as the requirements are met, you can apply for Sharia Take Over Financing from Bank Danamon. There are many benefits that customers can experience by using this program:

• Competitive margin
• Financing tenor can be up to 20 years
• Light installment payments
• Can apply for additional credit limit
• Financing with top-up application for various needs

In addition, the tenor of up to 20 years, where the longer the financing period, the lighter/smaller the installment payments will be, and the maximum financing limit can be up to 15 billion.

Find out more about PPR iB from Danamon Syariah by watching the Danamon Financial Friday video that presents explanations from Danamon Experts here. Also, watch other Danamon Financial Friday videos that provide tips, information, and inspiration in financial management, which airs every Friday on Youtube and Vidio!

(kly/tmi)