Want to Buy a House in the Middle of an Economy Full of Uncertainty, Try This Method My Money – 1 day ago

Jakarta, CNBC Indonesia – The Home Ownership Credit (KPR) program with a tiered fix scheme is often considered a solution when the Bank Indonesia (BI) benchmark interest rate increases. However, is this true?

With a tiered fixed mortgage, you have certainty regarding any increase in mortgage interest rates. Assuming your mortgage application has been approved by the bank, then the following is the amount of your mortgage interest:

• Years 1-3: 7.4%

  
  

• Years 4-6: 8%

• Years 7-10: 10%

Are you interested in this scheme? Before you decide to buy a house through a tiered mortgage, it is important to know the advantages and disadvantages of this product.

Predictable installments & so does your financial burden

With this method, the increase in your mortgage installments in the long term can be well predicted. You will also be calmer because in the long term, you can predict your financial burden.

One thing you have to do is maintain a stable income, and keep the amount of your emergency fund within the ideal limit.

If at any time a disaster occurs which will result in the loss of your income, the emergency funds can be used to pay installments.

Whether a tiered fixed or floating mortgage, mortgage interest may increase if there is an adjustment to the Bank Indonesia Reference Interest Rate. In general, banks set a maximum term for the fixed period in tiered fixed mortgages.

Let's just say, to be able to apply for a mortgage, the minimum term offered is 12 years, while the fixed period is 10 years.

If asked which is more profitable, a tiered fixed or floating mortgage, then both must be adjusted to the financial capabilities of the person concerned.

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