The Ultimate Guide to Home Loans: Types, Benefits, and How to Calculate Your Mortgage




Owning your dream home is now more achievable than ever, thanks to home loan installment plans or mortgages (commonly known as KPR in Indonesia). With this system, you don’t need to pay the full price upfront—instead, you just cover the down payment and pay the rest in installments over an agreed period.

However, choosing a mortgage plan isn’t something you should rush into. It’s crucial to understand the different types of home loans available, their benefits, and how to calculate your monthly payments to ensure they fit your financial situation.

In this guide, we’ll walk you through everything you need to know about home loans—from the different types and how to apply to mortgage calculations. Let’s dive in!

Why Choose a Home Loan? The Benefits Explained

  1. Own a Home Without Paying Everything Upfront

A mortgage allows you to buy a house without needing to pay hundreds of millions of rupiah all at once. Typically, you only need to cover a down payment of 10%–30% of the house price, and the rest can be paid in manageable installments.

  1. Flexible Loan Terms for Affordable Payments

With loan terms extending up to 20 years, monthly payments become more affordable and less of a burden on your income.

  1. Access to Better Properties

Many property developers offer mortgage plans for homes in strategic locations with great facilities, allowing you to live in a more comfortable and well-connected environment.

  1. Long-Term Investment Opportunity

Real estate values tend to increase over time. This means that aside from securing a home, your property could also serve as a valuable investment.

  1. Builds Your Financial Credibility

Making consistent, on-time mortgage payments improves your credit history. A strong credit score can help you secure future loans, whether for personal, vehicle, or business financing.

Types of Home Loans You Should Know

  1. Subsidized Mortgage (KPR Subsidi)
  • Designed for low-income households
  • Fixed interest rate throughout the loan term
  • Lower down payment and monthly installments
  • Limited housing options in specific locations
  1. Non-Subsidized Mortgage (KPR Non-Subsidi)
  • Available to anyone, regardless of income level
  • More flexible loan terms with fixed or floating interest rates
  • Wider selection of properties in various locations
  • Generally higher interest rates compared to subsidized loans
  1. Conventional Mortgage (KPR Konvensional)
  • Standard loan agreement with a bank
  • Can be used for any type of property
  • Interest rates may fluctuate depending on the bank’s policies
  1. Islamic Mortgage (KPR Syariah)
  • Interest-free and follows Islamic financial principles
  • Uses Murabahah (buy-and-sell) or Nisbah (profit-sharing) agreements
  • Fixed installment payments, unaffected by interest rate changes
  • Typically requires a higher down payment compared to conventional mortgages

Steps to Apply for a Home Loan

  1. Choose Your Dream Home

Find a house that meets your needs and budget. Consider location, accessibility, nearby facilities, and the surrounding environment.

  1. Verify the Developer’s Reputation

Don’t get lured by low prices before checking the developer’s credibility. Make sure they have the necessary licenses and are partnered with reputable banks.

  1. Prepare a Booking Fee

Most developers require a booking fee ranging from Rp5 million to Rp10 million to secure your chosen property. Be certain about your decision before paying, as this fee is often non-refundable.

  1. Pay the Down Payment (DP)

The down payment typically ranges from 10% to 30% of the house price. If you have extra savings, it’s advisable to pay a higher DP to reduce your monthly installment amount.

  1. Understand the Mortgage Terms

Be sure to review the bank’s interest rate system—whether it’s fixed, floating, or hybrid. Choose a repayment term that aligns with your financial capabilities.

How to Calculate Your Monthly Mortgage Payment

Let’s say you want to buy a house worth Rp300 million with a 15% down payment, a 10-year loan term, and a fixed 10% annual interest rate. Here’s how to calculate it:

  • House Price: Rp300 million
  • Down Payment (15%): Rp45 million
  • Loan Amount: Rp255 million
  • Loan Term: 10 years (120 months)
  • Annual Interest Rate: 10%

Monthly Installment Calculation Formula

(Loan Amount × Interest Rate × Loan Term) ÷ Total Months

= (Rp255,000,000 × 10% × 10) ÷ 120
= Rp3,369,844 per month

For a more precise calculation, you can use an online mortgage calculator to adjust the numbers based on your specific needs.

Choosing the right home loan requires careful consideration. Be sure to select a mortgage plan that fits your financial situation, understand the repayment structure, and ensure that your monthly installments are manageable without compromising your other essential expenses.

With the right preparation and financial planning, owning your dream home is no longer just a dream—it’s within reach!

For those of you ready to turn your dream of owning a home into reality, Nobu KPR is the perfect mortgage solution! Enjoy hassle-free home financing with benefits like instant contract signing, zero fees, installments starting from just Rp1 million, and a 0% down payment.