For those of you who want to buy a home through a mortgage facility (Home Ownership Credit), avoid mistakes by taking the shortest repayment period. Maybe you feel that the installment for 20 years, for example, is a very long time and seemingly endless. Therefore, you try to pay it off as quickly as possible by taking the shortest installment period. This can be dangerous, and you may need to do your hardest effort to stop foreclosure in the future.
If you intend to buy a home for your family’s residence, the shortest period option is not the right thing. It would be better if you take a long period, so you can manage your finances for other things that are also important, for example for school fees, buying a car, upgrading the house, and so forth. To save more money, you can pay a 10% mortgage deposit, as offered by KPR BRI, depending on the type of developer, so that the remaining money can be allocated for other needs. For home renovation, you can also use the facilities of the bank, one of them from KPR BRI as well. Therefore, if your monthly income is limited, just take the longest installment period.
The fix: Calculate your monthly fixed expenses, and see how much money you can spend to pay the mortgage loan. After that, just choose a mortgage that suits your financial condition.
Also, do not forget to think about hidden costs. You may be complacent when you find a house with a very cheap price and then your savings money is sufficient to pay a mortgage deposit of 30% of the price of the house. Then, you hurry to apply mortgage to the bank so as not to lose the house. The shadows of having a house in its own name are already in your mind. As it turns out, when the process of handling home letters, there are many small fees you have to pay again, such as stamp duty, application fees, legal fees, and so forth.
The fix: Browse on the Internet or ask the property agent about the unexpected costs that must be incurred when going to buy a house.