JAKARTA (Yosefardi) – Starting September 30, 2013, Bank Indonesia implements new regulation on loan-to-value (LTV)/financing-to-value (FTV) for property ownership loan and consumer loans with property as collateral.
The new regulation was released on September 24, 2013 to respond growing property index, which outpaced GDP per capita.
Prperty ownership credit covered in the new LTV/FTV included loans for landed house, apartment, home-office, and shop ownership plus consumer loans with property as collateral.
Based on new regulation, loan for first housing and apartment with above 70m2 space/area imposes maximum 70% LTV, maximum 60% for second property ownership, and maximum 50% for third property ownership.
The lower LTV means the higher downpayment made by a consumer. For first property ownership with LTV of 70%, the downpayment is set for minimum 30%. Or downpayment of minimum 40% for LTV 60% and downpayment of minimum 50% for LTV 50%.
While first property (housing, shops, office) with space of between 22-70 m2 is not applied with LTV regulation.