Relaxation rules, the free bank determine the mortgage advances

Filianingsih Hendarta, Deputy Director of the Department of Makroprudential BI Policy, explained that the down payment should encourage the growth of public consumption in the real estate sector. He explained that amid high interest rates, this new policy could become a stimulus for public consumption.

"In the current contraction zone, there must be a credit stimulus.We see that the growth of mortgages is still in a phase that can be accelerated.Based on previous experience in 2015 and 2016, the LTV's easing policy is able to encourage growth in real estate consumption, "said Filianingsih in Building Complex Office BI, Jakarta, Monday 7/7/2018. Risk of relaxing KPR of the increase in bad debt

Looking at the previous rules listed in the Regulation BI (PBI) Number 18/16 / PBI / 2016 on the LTV ratio for home loans, financing at value (FTV) for Property Financing, and Advance for Credit or Auto Financing, advance mortgage first property in a conventional bank of 15 percent. Meanwhile, progress in the banks ofthe sharia of 10 percent.

As for a second house of 20% for houses of type more than 70 square meters. And 15 percent if the house type less than 21 to 70 square meters. For the third house, the DP is set at 25 percent for houses on the type of 70 square meters and 20 percent for houses of type 21 to 70 square meters.

With this new rule, Filiani explained that banks can determine their own mortgage advance amount by considering their liquidity and their debtor portfolio. In fact, says Filiani banks can set the mortgage deposit to 0 percent.

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" Through this policy, we will allow the banking sector to self-manage the LTV / FTV amount of the first credit / financing in accordance with the badysis of the bank of its borrowers and risk management policies. from each bank "says Filiani. [194590]]

He explained that in determining the amount of LTV to the debtor, the bank must also pay attention to the prudential aspects in its application, so that only banks have a total net credit less than 5% and NPL KPR gross less than 5 percent can take advantage of this easing.From the beginning of the issuance of the provisions, the LTV / FTV policy also excluded the program

Due to the growing risk of bad credit or nonproductive loan (NPL), Filiani estimates that the banking conditions are always within safe limits. He explained that the NPL in the residential property sector is still maintained over the past two years. "We see its construction of bad debts there is an increase, but the mortgage is still managed from 2.77% in August 2016 to 2.87 in May 2018", has he said.

Increasing the Productivity of Other Sectors

In addition to taking into account the financial situation, BI is implementing a policy of easing mortgage payments because the real estate sector is considered to have a greater impact. important on the national economy. Filianingsih explained that according to his study, the property industry can increase the productivity of other sectors.

"If the property then develops in the cement industry, the paint on the carriage will go up.If the property is a road, then another industry will work," said Filiani.

According to the policy, Filianingsih believes that the national economy will also develop. He pointed out that the policy of easing the mortgage down payment in 2015 and 2016 has managed to push the growth of new mortgages from 6.21% to more than 12% so far.

In addition to facilitating the down payment on mortgages, BI has also eased credit and financing facilities through the inden mechanism up to a maximum of five institutions, regardless of the sequence. Filiani explained with this policy is expected to increase real estate investments.

BI also provides a new home financing regime of cumulative maximum research at 30 percent of the ceiling on the terms of the foundation after the credit agreement. Then a maximum of cumulative research up to 50% of the ceiling provided that the foundation is completed.

Next, a maximum of cumulative search up to 90% of the ceiling provided that roof coverage has been completed. Finally, the maximum cumulative disbursement up to 100 percent with the condition of the signing of the transfer minutes (BAST) that was completed with the act of sale and purchase covernote.

The BI also requires banks to ensure that all credit-granting transactions, including advances and progress disbursements, are made by the intermediary of the IB. accounts of debtors and promoters / sellers. [ad_2]
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