ILLUSTRATION. Existing KPR customers scream that the KPR interest will not go down, new customers actually profit
Reporter: Dina Mirayanti Hutauruk | Editor: I knew Laoli
KONTAN.CO.ID – JAKARTA. The downward trend in the Bank Indonesia (BI) benchmark interest rate did not have much impact on existing housing loans (KPR). This is because banks have not transmitted much of the BI rate to the reduction in floating mortgage interest rates. Banks prefer to focus on providing fixed interest promos at low rates.
So, this downward trend in interest rates is only beneficial for new mortgage customers. If you apply for a mortgage at this time, the variety of fixed interest offers is quite low, ranging from one year to five years. In fact, there are banks that offer fixed interest rates of up to 10 years but of course higher than the fixed interest rate of one to five years earlier.
Meanwhile, existing KPR customers, especially those who have entered into floating interest rates, still have to pay in installments at high interest rates. Currently, floating mortgage interest rates are in the range of 11% and above, and some have even touched 14%.
BI again cut the benchmark interest rate by 25 basis points (bps) to the level of 3.75% at the BI Board of Governors (RDG) Meeting in November 2020. So that, when totaled, the benchmark interest rate has fallen 1.25% this year. Even if it goes further backwards, the BI rate has fallen 2.25% from July 2019.
Also Read: Collecting the banker’s promise to lower lending rates
The bank admits that it has no plans to lower the mortgage interest rate in line with the reduction in the benchmark interest rate. They focus on providing fixed interest promos until the end of the year.
BNI GM Product Management Divition Teddy Wishadi said, BNI Griya interest will be maintained according to the current rate while paying attention to industry conditions, competitors, and credit quality trends during the pandemic.
“Until the end of the year, BNI Griya continues to offer a fixed promo interest rate program of one to five years, starting from an effective 4.74% pa and a grace period of up to 2 years which will ease installments because it only pays interest,” he said at Kontan.co.id, Friday (20/11).
Teddy did not mention the current BNI KPR floating interest rate, but as of April 2020 it was still around 13.5%.
Also Read: Small banks find it difficult to reduce credit interest
Meanwhile, Bank Mandiri claims to have reduced mortgage interest a lot this year. Bank Mandiri’s EVP Consumer Loan Ignatius Susatyo Wijoyo said the company’s floating mortgage interest rate was already 11%, down from 12.5% at the end of last year.
“Even for certain customers, we can give up to 10%. That’s for good customers, but we give a maximum of one year,” he said.
In addition, Bank Mandiri also provides fixed rate promotions with low rates. For one year fixed interest rate, this state-owned bank offers 4.59% interest. Then 5.99% fixed for a period of three years, and 6.85% fixed for five years.
DONATION, Get Free Vouchers!
As an expression of gratitude for your attention, there are free vouchers worth donations that can be used to shop at the KONTAN Store.
Reporter: Dina Mirayanti Hutauruk
Editor: did you know Laoli