Buying your first home can be a lengthy process, especially in today’s high-priced real estate market.

For first-time buyers, obtaining a mortgage may seem daunting due to rumours of a complicated process. However, purchasing your first home is not an impossible dream, especially when you’re armed with the right knowledge.

Before embarking on the journey of purchasing your first home, it’s advisable to understand the ins and outs of the mortgage application process. This way, you can prepare everything you need for a successful application.

Here are some essential tips for those of you looking to buy your first home with a mortgage:

Clean Up Your Credit History (BI Checking)

Before applying for a mortgage, banks will scrutinize your credit history. It’s crucial to maintain a healthy payment history, and a two-year clean record is especially vital leading up to your mortgage application. It is advisable to consult with a trusted financial advisor to understand the process of checking your credit history.

Manage Your Bank Account Activity

Frequent transfers between accounts may raise questions with your bank. Although not a major issue, it’s a consideration during your application. Therefore, it’s wise to maintain a steady banking pattern well in advance of your mortgage request.

Consider Your Down Payment

Bank Indonesia has granted banks the authority to determine the size of your down payment. If you have extra funds, maximizing your down payment is a smart move. A larger down payment can decrease your monthly instalments, making it more manageable.

Career Consistency Matters

Your employment history and consistency in your career play a significant role in your mortgage application assessment. To enhance your chances of approval, having at least two years of experience at one company is beneficial. Frequent job-hopping with uncertain employment status may reduce your approval chances.

Assess Your Financial Situation

Before officially applying for a mortgage, have a comprehensive discussion with your bank. Carefully calculate the down payment, monthly instalments, and the loan’s tenure. These factors will significantly influence your monthly payments.

Set Aside Funds for Furnishing Your New Home

Don’t forget to budget for furnishing your new home, as it’s not just about the down payment and monthly payments. You’ll need to ensure your new residence is comfortable and functional. Make a prioritized shopping list and allocate a portion of your budget for essential furnishings.

Survey the Local Area

Once you’ve found housing options online and one stands out, the next step is to survey it in person. Visiting the property in question allows you to get a real feel for the environment. Pay attention to the neighbourhood, your potential neighbours, and other factors that may impact your future there.

Choose a Home that Meets Your Needs

While it’s tempting to aim for a large and luxurious home, remember that your first home should cater to your needs. A big, beautiful home isn’t necessarily better. Prioritize your requirements and select a home that aligns with your current and future goals.

Assess Mortgage Loan Programs and Lenders

In addition to the home and its surroundings, you should evaluate the mortgage programmes and the banks offering them. Pay attention to the features each programme provides, interest rates, promotions, and penalties. Each bank has its unique policies, so comprehensive research is advised for a suitable choice.

Use a Mortgage Calculator Online for Insight

If you’re still uncertain about the mortgage process, using a mortgage calculator can provide a clear picture. LetsMoveIndonesia’s KPR Calculator offers a user-friendly mortgage calculator that can assist you in estimating your instalment, down payment, and other important information.

Interested to try forecasting your Mortgage Loan Projection? Access our Online Calculator here.

Read Contracts Carefully and Make Rational Decisions

As you move through the home-buying process, remember to approach it with a logical mindset. When you’re in the market for a home, especially as a first-time buyer, be sure to scrutinize all contracts, documents, and agreements. If you encounter unfamiliar terms, don’t hesitate to ask questions until everything is clear. Avoid making emotional decisions, and keep your eye on your ultimate goal: owning your first home.

Common Questions About First-Time Home Buyer Mortgage Indonesia

If I am not a first-time buyer, can I still use this service?  

Unlike some countries, Indonesian banks do not specifically categorise mortgages and the options are simpler. We can help anyone get a mortgage in Indonesia, pending their income and monthly expenditures.  

Is there any fee to get a mortgage from LetsMoveIndonesia?  

Yes, our advice and time is completely free. Just sign a cooperation agreement which ensures all conversations are kept between us and if you use a lender recommended by us, we are recognized as the introducer.  

LetsMoveIndonesia as Your Trusted First Time Mortgage Consultant

Moreover, for those considering the property market in Indonesia, you may benefit from seeking the expertise of a trusted mortgage broker and KPR consultant. LetsMoveIndonesia is one such institution that can guide you through the complex world of Indonesian real estate. Their experience and knowledge can be invaluable in helping you purchase your first home through the KPR system. Don’t hesitate to contact them to obtain the assistance you need for property acquisition in Indonesia.

Found this article interesting? Then check out our other useful articles about home loan mortgages here!

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