Do you want to buy a house by credit? Will you be included in the criteria of people who are rejected when applying for mortgage payments?
If you intend to apply for a mortgage, don’t be careless!
Prepare your submission to be more smooth and immediately accepted by the bank by avoiding the rejected criteria which will be discussed through the following Herne the Hunter article! Happy reading!
Why Installment Home Loans?
Those of you who have been looking for a home must understand their grief. Starting from finding a house that is strategically located, the price is right in the pocket, until the purchase process.
The name is buying a house, certainly can not be equated with buying fried foods. Because the price is expensive, you must be more thorough and patient in your search and purchase. Buying a house is also sure to have obstacles, whether the price is not appropriate, to fight over the house with other interested people. Well, if you do not want to continue because money is not enough, of course the Home Ownership Loan (KPR) can be the solution.
The main advantages of using a home loan facility are:
- Large cash needs are overcome because borrowers only need to provide advance payments and do not need to prepare large amounts of funds.
- There is a large installment relief due to expectations of increased income mainly because mortgages generally take place in the long term.
But any were rejected when applying for mortgage payments, aka KPR. If the submission is rejected, it is certainly difficult because you have to look for other bank alternatives. Why is that so huh?
For the possibility of a higher accepted submission, Herne the Hunter invites you to look at some criteria for people who were rejected when applying for the following mortgage installments.
But before that, the thing you have to remember is a financial plan. The financial plan must be carried out by everyone in order to know what things must be and can be planned financially in the present to the future. Doing a financial plan is not as easy as imagined. Many things must be considered and other things so mistakes can be avoided,
If you want to learn more in financial planning, you can look for a number of references that are relevant to this
5 Criteria for People Denied When Installing Home Loans
As stated earlier, many people always confide in me about filing their home loan installments that are rejected. The most annoying thing for them, of course, is ignorance of the reason for his rejection.
Do they not meet the requirements or is the credit score bad? Or because their names were blacklisted by Bank Indonesia without being aware of it? Or is there something else that causes this? All processes in accepting or rejecting home loans (KPR) actually have a standard, so that the acceptance or rejection is certainly based on clear reasons.
This is due to banks or financial institutions suppressing the value of Non-Performing Loans (NPL) caused by the amount of default. This value does determine the health of a bank or related financial institution, where a bank with a high NPL means an unhealthy bank. The limitation of the safe NPL ratio itself is generally at the 5 percent level so that the bank still gets funding for credit.
Well, if you also experience a repayment of home loan installments, let’s look at some criteria for people who were rejected when applying for a mortgage. Thus you can avoid these 5 criteria for submitting your next mortgage:
# 1 Still Have Other Credit Installments
One criterion for rejection when applying for home loan installments is whether or not there is another ongoing credit. For example, you still have other credit (for example: motor vehicle loans, credit card arrears, etc.).
If so, you should pay off your existing credit first, then apply for a home loan. Because if you still bear debt or other credit, your submission has the potential to be rejected by the bank.
This is based on the assumption that it would be very risky to distribute credit to prospective debtors who are known to still have debt dependents. The bank considers that you still have a lot of credit burden, and are at risk of having difficulty paying it off. Therefore, first make sure your debt or credit has been paid off before applying for a new home loan installment.
# 2 High Debt Ratio
If you borrow a sum of money from a bank, the bank will take into account the debt ratio. The bank uses these ratios to measure the financial ability of the prospective debtor Debt ratio is a comparison between income per month with ongoing credit installments.
Debt ratios determined by banks usually do not exceed 30 percent, this is done to anticipate bad credit. Why is the greater the debt ratio the worse? Because if the ratio is more inclined to debt, then you can be sure you will find it difficult to make ends meet.
If your debt ratio has exceeded 30 percent, chances are that credit is not accepted. So, first calculate the debt ratio before applying for a home loan by dividing the total debt by the total assets you have.
For example, the following is a debt ratio calculation:
- Income: IDR 15,000,000 / month
- Credit card installments: IDR 2,000,000 / month
- Installment of car loan: IDR 2,000,000 / month
- Installment of home loans: IDR 2,000,000 / month
Debt Ratio = Amount of debt: Income
Debt Ratio = IDR 6000,000: IDR 15,000,000 = 40%
# 3 Non-permanent Income
In applying for a mortgage, each bank will provide terms and conditions that need to be fulfilled before moving on to the next stage.
Although each bank usually has different requirements, the following are the requirements for general documents that need to be prepared as the terms of the loan application, as follows:
- Photocopy of KTP / Passport / KITAS / KITAP husband and wife (if married).
- Family Card or proof of marriage (if married).
- Last month’s salary slip or salary statement.
- Photocopy of Company Deed and or SIUP for employers or employment certificate for employees.
- Photocopy of the last 3 months’ statement.
- Photocopy of Practice License.
- Photocopy of the Last 1 Month Credit Card Bill.
- Photocopy of Credit Card.
- Photocopy of Land Certificate.
- Photocopy of Building Construction Permit (IMB).
- Photocopy of the certificate from the house developer / seller who states that he agrees to sell the house.
Looking at the underlined conditions, you certainly see that these two conditions lead to an assessment of your income. This requirement is used by banks to analyze the ability of prospective debtors to make installment payments.So, the bank wants the prospective debtor with a fixed income so that the risk of default can be minimized.
# 4 Doesn’t Have an NPWP
Let’s go back to the mortgage requirements on the third point, NPWP is one of the document requirements that also needs to be fulfilled. Why is that? NPWP is indeed a requirement for credit submission because it is required by the rules created by the Financial Services Authority (OJK).
In addition, having a NPWP is a feature that indicates that the prospective debtor is a person who obeys paying taxes. Obedience of the prospective debtor in paying taxes will later be proven by submitting an annual tax return to the bank. So, essentially the requirements for applying for a mortgage are not careless, but based on many considerations that will show your financial ability and credibility.
# 5 Enter the OJK SLIK Blacklist
Don’t be surprised if your home loan application is rejected because your name is listed on the OJK SLIK blacklist. This list was also called the BI Checking blacklist and is now the authority of the Financial Services Authority (OJK).
Therefore, before applying for home loan installments, you should check the blacklist in the OJK SLIK instead of BI Checking. From this SLIK OJK you can see what your credit collectability is like.
It should be noted that your collectibility is considered good if you get quality 1. While collectibility is doubtful if you get quality 2, quality 3, quality 4, or quality 5. Doubtful collectability has the potential to be blacklisted.
Just like BI checking, you can avoid entering the OJK SLIK blacklist by discipline to pay credit installments. Try to be on time and the right amount in each period. The point is you need to make sure that your financial history is good. In other words, there is no history of bad credit or failure to pay if you have done credit before, either in the form of a mortgage (mortgage), car or motorcycle credit, and others.
Therefore do not underestimate this one thing.
Let’s Prepare Your Finances Before Home Loans!
As mentioned earlier, the rejection criteria for mortgages or home loans generally lead to your financial condition. Therefore, remember to always estimate your financial capacity to pay for your home loan and be ready to fulfill all mortgage requirements properly.
If you are still having trouble measuring your financial capacity to buy a house, you can plan your home down payment using the Herne the Hunter Application. Thus you can find out how much money you have to prepare for a home mortgage.
If you are a new user, please register here or download it on the Google Play Store, then take advantage of the “House Buying Fund” feature from Herne the Hunter.
In addition to estimating finance, you should also improve your finances if you feel you have not met the qualifications to apply for a mortgage. It’s useless to ask if you know you will be rejected right?
To improve your finances, you can apply the following easy tips:
- The amount of installments and debt must be less than 30 percent of the transfer and / or the movement of money in savings at least 10-12 times the amount of monthly installments. For example: monthly installments of IDR 6 million, then there is at least Rp 60 million to Rp 72 million in savings.
- Have a credit card with the appropriate limit. Although not mandatory, there is added value if you have a credit card. Especially if you have a credit card with a minimum limit of IDR 20 million.
- A plus if you have a large enough deposit.
Avoid the criteria for the smooth submission of your home loan
In short, when you plan to buy a house using a home loan or mortgage facility, pay attention and avoid some of the criteria rejected above. Learn and prepare carefully for the smooth running of your home loan process starting from the submission to the future implementation.
Do you have questions about the 5 criteria of people who were rejected when other home loan installments? Leave your comment below. Our Financial Planner is ready to help you, thank you.