2025 Requirements for Commercial and Subsidized Home Mortgage in Indonesia

Buying a home through a Mortgage (KPR) remains a popular choice for Indonesians in 2025. This program helps many people own a house by paying in installments over a long period. However, to take advantage of this facility, it’s important to understand the requirements for KPR homes, whether for commercial or subsidized housing.

What Is a Home Mortgage in Indonesia?

A Mortgage (KPR) is a financing facility provided by banks or financial institutions to help people buy a home through installments.

Under this scheme, the bank first pays the seller the full price of the house, and the buyer repays the bank over a set period (usually 5 to 25 years) with an agreed-upon interest rate.

KPR can be used to purchase a new house, a second-hand home, an apartment, or even for home renovations. There are two main types of KPR:

• Commercial KPR, offered by banks with market-based interest rates and terms.
• Subsidized KPR, provided by the government for low-income households, featuring low interest rates and minimal down payments.

The main purpose of KPR is to make home ownership more accessible without requiring full cash payment upfront.

Read More: Credit Bureau as a Support System for the Government’s 3 Million Homes Program

Requirements for Commercial Home Mortgages

Commercial home mortgages are intended for people looking to buy non-subsidized homes. Generally, these mortgages offer greater flexibility in terms of home price, loan tenor, and interest rate options.

Some additional requirements for applying for a commercial mortgage include:

• The home price is not limited by the government.
• Income can come from employment, self-employment, or professional work.
• Down payment (DP) is typically 10–20% of the home price, depending on the bank’s policy.
• Loan tenor can range from 20 to 25 years.
• Additional supporting documents may be required, such as financial statements for the self-employed or practice licenses for professionals.

Commercial home mortgages are suitable for those seeking high flexibility and who have a more stable financial capacity.

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Requirements for Subsidized Home Mortgages

Unlike commercial mortgages, subsidized home mortgages are a government program through the Ministry of Public Works and Public Housing (PUPR) aimed at low-income households (MBR).

Some of the requirements for subsidized mortgages in 2025 include:

• Maximum household income of IDR 8 million per month (combined for husband and wife).
• Have never owned a personal home or received housing subsidies from the government before.
• The purchased home must be used as a primary residence, not for rent or resale.
• Home prices must not exceed the government-set maximum for the area.
• Low down payment (DP) and fixed interest rate for the entire loan term.

This program is especially helpful for first-time homebuyers, offering affordable installments and low interest rates.

Read More: Maintaining a Healthy Credit Score with Active Online Loan Applications

Learn More About Your Mortgage Options with CLIK Credit Bureau

Explore the different types of home mortgages available in Indonesia, from commercial to government-subsidized programs. With CLIK Credit Bureau, both individuals and companies can check credit eligibility, understand the requirements, and plan their financing, making it easier to achieve their dream of owning a home.