Conventional or non-subsidized Home Ownership Credit (KPR) is a credit facility provided by banks to individual customers who will buy or repair a house. In terms of KPR, this is determined by the banking system so that the determination of interest rates and the amount of credit is carried out by banking policy.

For people with middle to lower incomes, there is a government program that offers subsidized mortgages. So that it can reduce the amount of credit or interest rates that are not as big as conventional mortgages. In general, the limits set by the Government in providing subsidies are the applicant's income and the maximum credit granted. For those of you who want to know more about subsidized mortgages, here's a detailed explanation that you can find in this article:

  • What is Subsidized Mortgage?
  • How to Apply for Subsidized KPR
  • The difference between subsidized and non-subsidized KPR
  • Banks that provide subsidized mortgages

The following is a detailed explanation of subsidized mortgages and their requirements which you can see below.

What is Subsidized Mortgage?

Subsidized KPR is a KPR regulated by the government, in collaboration with the Ministry of Public Works and Public Housing of the Republic of Indonesia. The interest rate given is quite light and flat at 5% and that is a fixed rate for the term of the credit. This KPR is intended for middle to lower income people in order to meet the needs of subsidized housing or repair of houses they already have.

Subsidized KPR aims to ease credit and subsidies in increasing funds for development or home repairs. Because subsidized mortgages are regulated separately by the government, not every person who applies for credit can be given this facility. This subsidized mortgage is also not subject to VAT in the price of the house, so that it is easier for people to make this mortgage.

Subsidized mortgages can be an alternative for those of you who want to buy a house on a limited budget. But you can also look for affordable housing in areas around Jakarta, such as in the Parung Panjang area, Bogor. Find a list of homes for sale under IDR 300 million here!

How to Apply for Subsidized KPR

As is well known, the initial purpose of subsidized KPR is for the category of low-income people. Not all categories of people can get subsidized housing facilities. There are several conditions if you want to get it, the conditions include:

  • Indonesian citizens
  • Married or 21 years old
  • The prospective beneficiary or partner (husband/wife) has never owned a property and has never received a government subsidy for home ownership
  • The recipient's salary does not exceed IDR 7 million for Flats Welfare Houses and IDR 4 million for Tapak Welfare Homes
  • The recipient has a steady job for at least 1 year
  • Subsidized KPR recipients must have an NPWP or SPT and PPh
  • Comply with the terms of use

As for the documents that must be prepared in applying for this subsidized mortgage, among others:

  • The credit application form is accompanied by a recent passport photo of the applicant and spouse
  • Photocopy of the applicant's and spouse's KTP, KK, marriage or divorce certificate
  • Statement of income or latest salary slip, photocopy of SK for employees
  • Trading business license, company registration certificate, and domicile certificate as well as financial reports for self-employed applicants
  • Photocopy of license to practice for professionals
  • NPWP photocopy
  • Copy of bank statements for the last 3 months
  • Affidavit has never owned a house
  • A statement letter has never received assistance for housing ownership from the government.

The difference between subsidized and non-subsidized KPR

Not only the price of subsidized and non-subsidized KPR houses that have significant differences. Other differences include the following:

1. House prices

The most significant difference between subsidized and non-subsidized mortgage housing is the price. For houses taken with subsidized mortgages, the price is much cheaper because they receive financial assistance from the government and are not subject to VAT.

Interest rates are also lower with flat interest. In contrast to houses taken with non-subsidized mortgages, the price can be much more expensive than houses with subsidized mortgages with higher interest rates.

2. Facilities

Houses with non-subsidized mortgages have much better facilities than subsidized houses. In contrast to subsidized housing which is only equipped with a bedroom, bathroom and living room. The rest you have to pay for yourself.

3. Size or type of house

In addition to price, the difference between the houses taken with subsidized and non-subsidized mortgages can be seen from the size and type of houses offered. Subsidized houses usually have a maximum area of 36 m2 or type 36. Meanwhile, for houses with non-subsidized mortgages, the maximum area can exceed 36 m2.

4. Location

The location of subsidized and non-subsidized housing is also very different. Houses with non-subsidized mortgages are usually in strategic locations. Meanwhile, houses with subsidized mortgages are usually located on the outskirts of the city and far from public facilities or even the city center. Even so, developers are starting to build subsidized houses that will later become part of a city that is being developed.

Banks that provide subsidized mortgages

Come to the implementing bank branch and fill out the application form to apply for a subsidized mortgage.

Based on the signing of the banking cooperation with the Public Housing Savings Management Agency in early January 2023, there are 38 Official Banks that are distributors of subsidized mortgages. For those of you who want to apply for subsidized mortgages, you can check the 38 subsidized mortgage lending banks as follows:

  • Bank BTN
  • Bank BTN Syariah
  • Bank BNI
  • Bank BNI Syariah
  • Mandiri Bank
  • Bank BRI
  • Bank BRI Syariah
  • Bank BRI Agro
  • Bank Artha Graha
  • BPD BJB
  • BPD South Sumatra Babel
  • BPD Sumsel Babel Syariah
  • BPD NTB Syariah
  • BPD East Java
  • BPD East Java Syariah
  • BPD North Sumatra
  • BPD Sumut Syariah
  • BPD NTT
  • BPD Kalbar
  • BPD Kalbar Syariah
  • BPD Nagari
  • BPD Nagari Syariah
  • BPD Aceh Syariah
  • BPD Riau Islands
  • BPD Riau Kepri Syariah
  • Sharia BPD DIY
  • BPD Kalsel
  • BPD Kalsel Syariah
  • BPD Jambi
  • BPD Jambi Syariah
  • BPD Sulselbar
  • Sulselbar Syariah
  • BPD Papua
  • BPD Central Java
  • Bank Jateng Syariah
  • BPD Central Sulawesi
  • BPD East Kalimantan Tara
  • BPD Kalteng

Those are the 38 official banks that are distributors of subsidized mortgages. To be able to apply for subsidized mortgages, you can go directly to the nearest bank branch.