Monday, September 23, 2013

Mortgage Debtors Are Ready Stuck by Interest Loans

LTV policies imposed mid- 2012, was unable to withstand the surge mortgages . Is the mortgage still flowing after the price of subsidized fuel and Bank of Indonesia’s Rate rises ?

Mortgage debtors get ready to spend more . The reason , some banks plan to raise mortgage rates starting in August . Did not rule it will follow other banks .

Planned increase in the mortgage rate is the impact of rising funding costs ( cost of funds ) banks , after rising fuel prices and the subsidized  Bank of Indonesia’s rate . In addition to the cost of funds , it is caused by liquidity conditions are more stringent before subsidized fuel prices rise . The banks are already anticipating it in order to maintain liquidity when macro - economic conditions and monetary increasingly flushed due to a surge in inflation.

Indeed , so far claiming many banks are still not going to take the mortgage interest rate adjustment . They will observe more macro - economic situation that developed in the onslaught of increases in the price of basic commodities . In addition , banks are likely still considering the current credit conditions . Bank of Indonesia ( BI ) launchs , credit growth slowed until the end of May 2013 to 21.00 % (year on year or yoy ) . Meanwhile , the growth of consumer credit decreased to 18.40 % ( yoy ) .

Next to Bank of Indonesia is predicted to re- raise the Indonesian Bank’s Rate . Some economists from banks also agrees the need for BI rise again . If that really happens , banks will face liquidity conditions in the market are more stringent and banks had to raise interest rates on deposits to seize the funds . As a result , banks are not willing to lose the margin is too large to raise lending rates , mortgages are no exception .

In the last year many banks maintain lending rate ( prime lending rate ) mortgages , in fact rarely cut it . In the ranks of the top 10 banks prime lending rate , which is pretty much a national bank prime lending rate mortgages corrected in May 2013 compared to May 2012 . For example , PaninBank have lowered BNI 0.76 % and 0.05 % .

Meanwhile , Bank CIMB Niaga , Bank Danamon , as well as lower BTN respectively 0.20 % , 0.25 % , and 0.30 % . Five other banks tend to maintain prime lending rate , no increase or decrease . This is the interest rate competition launched by major banks in Indonesia.

Then , how the movement of mortgage prime lending rate in five months running this year ? When you see the movement of the prime lending rate per month , the majority of banks still prefer to keep it more . However, PaninBank who choose to raise its prime lending rate by 0.13% to 10.13 % in May.

Now things started to turn around . The bank has also started the mortgage loan rate hike since July 2013 . Director of Consumer BCA , Henry Koenaifi , say , 2-3 year fixed mortgage program that flowering of 7.5 % has increased 0.5 % to 8 % . In fact , the bank led by John Setiaatmadja has designed a rise in mortgage rates her active in August 2013 by 0.5 % to 1 % .

What about other banks ? The other a matter of time . How much longer will banks survive with diminishing margins ? The evidence suggests , mortgage rates would soar . In fact , people who become customers of central bank faced with the pressure of prices of basic commodities that eroded earnings . This will further increase the risks to be faced by banks .

However, the mortgage may not necessarily be shunned customers because interest rates are squeezing . There are still many people who need homes . In fact , the association property developer had mentioned , the demand for housing in Indonesia reached 3 million units annually . Indonesia still faces a backlog problems ( housing shortage ) . So , it's not unusual , the condition will still give birth any residential demand in large numbers .

Issues of concern are pouring mortgages remains high , which is not offset by the ability of the debtor economy . It can be ascertained , the ability of debtors to pay installments increasingly weakened . Moreover, the costs of living more expensive .

The property sector has also left a dark note when the economic crisis of 1997/1998 . Therefore, Bank of Indonesia had never erase those concerns . Since two years ago, Bank of Indonesia has warned mortgage growth braked slightly so as not to cause economic heating . Moreover, this sector has import content . Anticipate problems property bubble , Bank of Indonesia has issued a policy loan to value ( LTV ) in March 2012 .

However , the policy is not a panacea that can control the pace of mortgage . That is, the growth of mortgage is quite high . Therefore, additional moves were adopted . Therefore, the increase in fuel prices and interest rates also seem to have put the brakes on loans to the property sector splash .

Regulators are now complete LTV policy . The policy is directed as a refinement of the circular LTV regulation of Bank of Indonesia on the application of risk management at banks that provide mortgages . Including setting a second home ownership and so on . The hope , the amount of the down payment (down payment or DP ) are charged to borrowers would minimize the risks faced by the banking sector .

Property sector can not be underestimated . This sector to the national economy is one of the locomotives . The property sector has absorbed a lot of manpower and have a lot of business with a chain of other sectors , including banking . However , once the sector will roll bad impact on other sectors . Historical evidence , the explosion of bad loans in the monetary crisis in 1997 largely contributed by the property sector . Not only in Indonesia. Many other countries are affected, including the superpowers , the United States . Surely we do not want that to happen in Indonesia!

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