Banks massively promote low rate mortgage

February 20, 2017, 04.01 PM  | Reporter: Galvan Yudistira, Nina Dwiantika
Banks massively promote low rate mortgage


JAKARTA. During the early of this year, some major banks ara massively launching promotion of housing mortgage loan products with the lower interest rate. This strategy aims at achieving the target of mortgage growth in this year.

For an example, PT Bank Central Asia Tbk (BCA) offers a housing mortgage loan program with a 6.0% of fixed interest rate for two years, as well as a housing mortgage loan product with a 6.88% of capping interest rate within three years. The promotion itself will last until 28 April 2017.

“We predict that BCA’s housing mortgage loan will grow by around 8%-10% in this year,” said Director of BCA Suwignyo Budiman, last week.

BCA is also partnering with a number of developers to attract the customers. According to Chief of Consumer Credit Business Division of BCA Felicia Mathelda Simon said, the provision of 6% interest rate requires customer’s funds on hold in three times of the initial installment.

If the customers refuse to allocate funds on hold in three times of the initial installment, BCA will impose a 0.5% higher interest rate than the rates of 6.0% and 6.88%. As information, recently, the average prime lending rate of BCA stands at the level of 10%.

Menawhile, PT Bank Mandiri Tbk offers housing mortgage loan product with a fixed rate of 6% within one year. Another hosuing mortgage loan product of the bank offers a 7%-8% fixed rate within three years.

Recently, the prime lending rate of Bank Mandiri’s housing mortgage loan stands at the range of 10.25%. According to the Director of Consumer and Retail of Bank Mandiri Tardi, the lower housing mortgage loan product targets the customers at the middle class segment.

Bank Mandiri is targeting to book a housing mortgage loan growth of 15%-20% to around Rp 34.49 trillion-Rp 35.99 trillion in 2017. Last year, the realization of Bank Mandiri’s housing mortgage loan amounted to Rp 29.99 trillion.

The markets of nBank Mandiri’s housing mortgage loan consist of the middle class segment with the ticket size of Rp 700 million-Rp 800 million, as well as the thigh class segment with the ticket size of Rp 2.5 billion.

PT Bank Tabungan Negara Tbk (BTN) also offers promotion housing mortgage loan product with the interest rates starting from 8% in order to boost the demands for housing mortgage loan. Consumer Director of BTN Handayani predicts that the housing mortgage loan allocations would remain sluggish in the quarter I-2017.

“At the early of this year, the demands for BTN’s housing mortgage loan were low, as the customers tended to adopt wait and see stance,” Handayani told KONTAN, Saturday (18/2).

BTN is targeting to book a 22% growth in the housing mortgage loan on year on year basis. This target is higher than the realization of housing mortgage loan growth in 2016 that stood at the level of 18.43%.

Handayani added, the allocation of BTN’s non-subsidized housing mortgage loan is expected to grow by 33%. Meanwhile, the allocation of subsidized housing mortgage loan is expected to grow by more than 17% in 2017. In terms of portfolio, BTN will maintain the portions of subsidized and non-subsidized housing mortgage loan as much as 55% and 45%, respectively.

According to BI (the Central Bank), the property credit grew by 15% to Rp 731.4 trillion as of the end of December 2016. The number of 15% has repeated the property growth rate in 2012.

Among various products of property credit offered, the segment of construction booked the highest growth at 24.2% to Rp 214.3 trillion, followed by real estate segment that increased by 22.2% to Rp 130.8 trillion.

Meanwhile, the segments of housing mortgage loan and apartment mortgage loan only grew by 8.1% to Rp 368.3 trillion in 2016. The banking regulatory predicts that the consumer credit will grow significantly in this year. (Muhammad Farid/Translator)

 

 

Editor: Sanny Cicilia

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