Friday, September 20, 2013

LTV and Mortgage Rule Tightening to Keep Property Loan

Bank Indonesia's efforts to tighten rules on LTV , including pivot limiting distribution of mortgage lending is done to maintain the property remain to be done with caution . Bank Indonesia ( BI ) confirms tightening loan-to- value ratio rule asset ( loan to value / LTV ) is done to maintain the property loan growth is still quite high , still run by the precautionary principle .
" Well what I want to convey , property loan growth until last July are still high in some segments of the range 25-67 % growth , " said Governor of Bank Indonesia , Agus DW Martowardojo , told reporters in Jakarta , Friday, September 20, 2013 .

He added that , through the rules trying to keep the BI LTV lending in the property sector remains healthy , and stay awake the application of the principle of prudence . So , said Agus , the overall financial system stability is maintained , and to believe consumers are protected .

In its official statement some time ago , the central bank will tighten the rules by applying LTV LTV ratio is different for home loans and apartments on the second , and so on . Previously , LTV rules , which stipulate mortgages and Loan Apartements for type 70 m2 and above, subject to a maximum LTV of 70 % , good for first or subsequent financing . Similarly, the debtor must set aside personal funds of 30% of the price of a house or apartment as a down payment .

Through sharpening LTV rules , then for both ownership and mortgages through Loan Apartements type 70 m2 up , set a maximum LTV ratio of 60 % , whereas for the third possession and so on , set a maximum of 50 % LTV . As for Apartements Loan Type 22-70 m2 , set the maximum LTV financing 80 % for the first , but for both the maximum LTV financing is set at 70 % , and for the third and so the maximum LTV financing 50 % .

In addition to the distinction LTV ratio for mortgage first , second , etc. , the central bank also mewacanakan to limit mortgage financing and Loan Apartements with pivot system . According to Agus , the financing of the property can only be done on the pivot for the first time to use the credit system to provide support specifically for debtors who have recently passed the first home mortgage system .

"If associated with the pivot , it's keeping the precautionary principle that healthy property loans , the associated pivot allowed the first house . For second homes and so are not allowed to pivot , because it needs to protect consumers in order to see the house and occupy new homes and bank credit than that ( can ) liquid , " he said

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