Having your own home is everyone’s dream, including Yunus, a 25-year-old employee. For this week, Yunus has been keen on scrolling online buying and selling sites, aka looking at house prices in the suburbs of the capital Jakarta, from his smartphone.
“Looking for a house is like looking for a mate. It cannot be fast and need patience. When I find a suitable one, the price is really expensive. Turn to find the price is OK, eh the location is not suitable, “he told Good Finance.
He admitted the price of tread houses located strategically on the outskirts of Jakarta is no longer cheap. However, this fact did not discourage him from having his own home. Although his salary is mediocre and still single, this native man born in Central Java believes that living in his own house is much more pleasant than a homestay.
I really want to have my own home
It’s been 5 years that I have boarded and boarding house prices continue to rise. I’d better look for a house and then buy it using a mortgage. For me, paying my own mortgage is much better because the house is my asset, “he said.
Buying a house on a mortgage (mortgage) is the best way for someone with a mediocre financial ability or do not have enough money to buy a house in cash. However, choosing the best mortgage was not easy for all generations in the time now.
A glimpse of Jonah’s story above can be the same as your life story. Choosing the best home and mortgage requires a special strategy so that finance is not dying. Avoid just choosing a mortgage so that you are safe from the ‘Batman trap’ of mortgage interest, which seems ‘low’ but actually ‘high’.
For those of you who intend to buy a house in installments using mortgages, must first consider these 3 things to be safe from the mortgage trap. Here are tips on choosing the best mortgage from Good Finance.
Avoid the Low-Interest Trap
Understand about mortgage rates. There are two types of mortgage rates, namely fixed (fixed) and floating (floating). The difference is that fixed interest is the interest rate that is fixed at a certain level for the duration of the credit period. Meanwhile, floating interest is interest whose value can change according to the Bank Indonesia reference interest rate rules.
You need to be careful with the rise of cheap low-interest mortgage offers. Often consumers are unaware of the KPR interest trap, such as interest promos that look ‘low’ but actually ‘higher’ after being calculated overall.
Mortgages with low fixed interest rates but short periods are not guaranteed mortgage installments will be cheaper. For example, KPR bank X offers a low-interest rate fix of 6% during the first 2-year installments. Then, in the third year, you are required to pay mortgage installments with the applicable floating rate. Certainly, the repayments are higher than the previous 2 years, and if calculated thoroughly, you actually lose money.
Low mortgage rates early are not the solution. A much better and profitable way for you is to choose mortgage products that provide low-interest rates with a long fixed interest period with a 6.65% fixed interest for 5 years. You can enjoy cheap installments, five-year fix. Not bad, right?
Measure Financial Ability, Perform Installment Simulations
For those of you who want to buy a house, remember the amount of mortgage installments must be adjusted to financial capacity. How to measure it is to do a mortgage loan simulation first before the ‘contract’ occurs or approve a mortgage loan. From here you can check your financial capabilities such as monthly mortgage payments, additional mortgage fees, late or late fees, and so on.
When checking the simulation mortgage calculation, try to make the installment amount not more than 30% of total income. To be more profitable, choose a mortgage that offers features free of charge.