Types Of Housing Financing

Types Of Housing Financing – The Housing Finacing system is a mechanism and process that involves various actors in channeling funds from the owner of the funds or investors to parties who need funding or borrowers to meet needs and or own housing through intermediary institutions.

The housing finacing system in Indonesia accommodates not only formal financing, namely financing that relies on formal institutions or banks, finacing companies in channeling and meeting funding needs to meet housing needs, but also informal housing financing, namely financing that relies on informal institutions, such as home-based financing. community or cooperative, social gathering and good relations between friends and based on kinship.

The acquisition of a house by each person is different, some own a house by buying cash, buying a house through credit or homeownership financing (KPR), building in stages either at their own expense or by applying for financing to a financial institution, as well as a contract or lease. The difference in the way of acquiring a house is due to the level of financial or financial ability of each person is not the same.

Type Of Housing Provision System

Formal Housing

Formal housing is a house or housing that is built or prepared by an institution/institution that is a legal entity and goes through a licensing process following statutory regulations. Formal housing is built by a legal entity such as a contractor or developer and is usually applied in urban communities. Formal housing pays more attention to the supply side approach so that the selling value is considered more than the use-value.

Self-Help Housing

Informal housing or self-help housing is a process of fulfilling housing needs through the use of their resources in the form of labor and finacing. Self-help housing is built on the community’s initiative, both individually and collectively, and is usually carried out in a cohesive rural community. Self-help housing pays more attention to demand-driven development so that use-value is considered more than selling value.

Financing Scheme For Formal Housing

Bank Through KPR

KPR is a facility provided by banks to individual customers who will buy or renovate a house. Apart from banking, some companies channel financing from secondary institutions for housing financing. Meanwhile, the principle of KPR is to first finacing the cost of buying or building a house which is then paid in installments.

Subsidized Mortgages

Subsidized Mortgages are loans or homeownership financing that receive assistance or ease of obtaining houses for the government in the form of long-term low-cost funds and subsidies for housing acquisitions diterbitkan oleh Bank Pelaksana, baik secara konvensional. Common types of subsidies include:

  • KPR SSB or Interest Rate Difference is a homeownership loan issued by the Implementing Bank in a conventional manner that gets a reduced interest rate through the Housing Loan Interest Subsidy.
  • KPR SSM or Margin Difference Subsidy is homeownership financing issued by the Implementing Bank with sharia principles which gets a reduced margin through the Housing Loan Interest Subsidy.
  • Advance Subsidy is a government subsidy given to low-income people in the context of fulfilling part or all of the down payment on housing.

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