A Guide to Apartment Ownership Loans

Buying an apartment with apartment ownership loans is not as difficult as it seems, see what you need here!

Panduan pengajuan KPA Imdonesia, how to grant Apartment loan in Indonesia
Minute Read

3 mins

Published

04.02.2022

Owning a house is everyone’s dream and an apartment is an excellent option! 

Without a doubt, being able to buy your dream apartment can be one of life’s biggest achievements, and in what way can you make your dream a reality? An apartment ownership loan—the perfect solution for millions who dream of owning their own apartment.

When seeking to buy an apartment building, most people take out an apartment ownership credit to help them purchase their first home. But what is an apartment ownership loan? How do you apply for it? Lokalist has set up a guide on what you need to know before applying for an apartment ownership loan, read through the rest of this article!

Panduan pengajuan KPA Imdonesia, how to grant Apartment loan in Indonesia

What is an Apartment Ownership Loan?

Apartment ownership loans can be a viable option for many buyers in the market to purchase an apartment building. Just like a house ownership loan or kredit pemilikan rumah (KPR) that is no longer a stranger to our ear, an apartment ownership loan—known as kredit pemilikan apartemen (KPA)—works the same way as a house ownership credit does: A loan given from a bank or financial institution to those who want to buy an apartment, be it a newly-built or a preowned apartment building.

Buying an apartment through an apartment ownership loan will save you from the risk of loss, especially in purchasing apartments that are still under construction as there will be an additional guarantee of protection provided by the bank if at any time the developer is not able to complete the apartment construction project.

Additional property insurance is also available during your installment period that will cover fire and earthquake.

What You Need When Applying for an Apartment Ownership Loan

Keep in mind that every bank or financial institution has certain requirements that may differ from each other. But to help you get started with your apartment ownership loan, Lokalist has listed down all the lists for you.

  • An Indonesian citizen with a minimum age of 21 years or married, and no more than 65 years old.
  • Have the status of permanent employee/entrepreneur/professional.
  • The minimum length of work for employees is one year, and the length of business/profession is at least one year.

Panduan pengajuan KPA Imdonesia, how to grant Apartment loan in Indonesia

Documents to Prepare

For employees

  • Application form.
  • A copy of spouse’s identity card
  • A copy of Family Card (KK)
  • A copy of marriage/divorce certificate
  • A copy of Taxpayer Identification Number (NPWP)/annual SPT
  • A Copy of permanent employee appointment letter
  • Salary slip
  • A copy of bank statement for the last 3 months
  • Photo of applicant and spouse (if married)

For entrepreneur

  • Application form.
  • A copy of spouse’s identity card
  • A copy of Family Card (KK)
  • A copy of marriage/divorce certificate
  • A copy of Taxpayer Identification Number (NPWP)/annual SPT
  • A copy of SIUP
  • A copy of the deed of establishment of the company
  • A copy of bank statement for the last 3 months
  • Photo of applicant and spouse (if married)

Panduan pengajuan KPA Imdonesia, how to grant Apartment loan in Indonesia

The Cost of an Apartment Ownership Loan

Aside from the 20-30% down payment that you need to pay upfront, you will also need to whip up some additional fees, such as:

  • An administration fee, Rp 250.000-Rp 500.000
  • Assessment fee (survey), Rp 300.000-Rp 750.000
  • Bank provision fee, 0.5%-1% of the total loan
  • Insurance costs during the current loan, 1%-2% of the apartment price
  • Seller tax, 5% of the agreed apartment price
  • BPHTB tax, 5% of the apartment price minus the NJOPTKP price

 

Buying an apartment with apartment ownership loans is not as difficult as it seems, and with such low down payments, apartment ownership loans can help you achieve your real estate investment goals faster than ever before.