What is the Minimum Down Payment for a Property Loan?

Bank Indonesia Regulation No. 18/16/PBI/2016 on Loan to Value Ratio for Property Loans, Financing to Value Ratio for Property Financing, and Down Payments for Motor Vehicle Loans and Financing regulates the limits on property ownership loan values. For detached houses larger than type 70, the maximum loan ceiling is 85 percent of the property value. This means that the down payment for a house with an area of 70 square meters is a minimum of 15 percent of the property value, the exact amount depending on the bank's assessment.

For apartment units of type 22-70, the minimum down payment is 10 percent of the total property value. For apartment units larger than type 70, consumers must pay a minimum down payment of 15 percent of the property value.

The gubernatorial candidate pair Anies Baswedan-Sandiaga Uno promised zero-percent down payment (DP) financing for home ownership during their campaign. This promise will be difficult to realize as it violates BI Regulation No. 18/16/PBI/2016. Banks will certainly be hesitant to disburse loans if the regulations are unclear.