We want to talk about the KPR simulation. Bank Indonesia (BI) officially keeps the benchmark interest rate or BI rate at 7.5 percent. The decision was issued a day before the election of legislative elections in early April. The magnitude of the BI rate this time is long-lived because it has been in effect since November last year.
What does it mean if it is linked to housing loans (KPR)?
Yes, just get ready to take a deep breath because there is no story the bank will correct the KPR interest rate to be more friendly. Banks still charge high mortgage rates.
For those who already have loans, the burden of mortgage installments, especially those based on floating interest rates, will still be suffocating. Another case for those who intend to take a home loan, get ready to be exposed to high mortgage rates.
Understanding the amount of mortgage rates here is important because it involves the financial capacity to pay monthly installments, which is a maximum of 35 percent of monthly income. Therefore, it is highly recommended to simulate more home loan installments with new interest rates.
Mortgage simulation is the first step to adjust our financial capacity with the installment obligations later. This simulation is an illustration of the amount of bank loans that can be tolerated so that there is no problem in the future.
How to do a mortgage simulation?
Doing a mortgage simulation now is fairly easy. Quite a lot of banks that provide mortgage calculator features on their site. Live googling on the internet, then many mortgage loan options to choose from. It should be noted, the KPR calculator only functions as a general description.
When you know the financial capacity limit that can be borne to take a mortgage, the next stage is a survey of several banks. Be diligent to go to the base bank saving you know! Suggestions that are worth applying because they can compare mortgage products from several banks to get low interest rates.
Or you can glance at mortgage product offerings if products from conventional banks cause confusion due to fluctuations in interest rates. Islamic mortgages can protect customers from rising and falling credit interest rates. These mortgages apply fixed installments for the duration of the loan.
What needs to be emphasized here is that mortgages are not familiar with the calculation of interest as is usual for conventional banks but instead adopt a profit sharing system. As a result, the value of Islamic loans is the value of home purchases plus margins. The bank has already told the margin value to be collected when the customer takes a loan.
During the loan period, customers are required to pay in installments on the value of the loan plus the margin requested by the bank. Therefore, the installments remain until the loan period ends. A popular financing scheme is buying and selling.
The advantage of taking Islamic mortgages is certainty. Certainty here means that during the installment credit period will always remain.
So, fluctuations in interest rates will not affect the amount of installments that become obligations every month. In addition, when they have more money and want to pay off more quickly, KPR Syariah does not recognize any fines.
Unfortunately, the maximum mortgage loan period is only 15 years. In addition, there is a significant amount of late payment penalties.
Apart from that, it’s good to consider Islamic KPR if you see the condition of interest rates are not friendly. Or just ask about sharia unsecured loans (KTA) for other purposes.