This is a List of Banks Offering the Lowest Mortgage Interest Rates

Seven out of ten banks with the lowest mortgage interest rates, including private and foreign banks, dare to offer home ownership loan (KPR) interest rates below 10 percent per annum. Bank Nusantara Parahyangan offers the lowest rate at only 9.13 percent per annum. Interestingly, one of the major banks, Bank BCA, is also on this list. The intense competition in the housing credit market has led several banks to offer low interest rates to attract customers.

Approximately 77.22 percent of home financing is done through mortgage facilities (KPR), while around 15.91 percent is paid in cash installments. Only 6.88 percent of consumers can afford to buy a home in cash.

According to Bank Indonesia's quarterly report, the total disbursement of KPR and apartment ownership loans (KPA) in the fourth quarter of 2016 (up to November) reached Rp 362.84 trillion, a 1.9 percent increase compared to the previous quarter. Meanwhile, total banking credit in the same period also grew by 1.66 percent compared to the previous quarter.