Bank Mandiri offers mortgage rates starting at 4.59% fixed a year to 8.8% fixed for 10 years

ILLUSTRATION. KPR Bank Mandiri

Reporter: Dina Mirayanti Hutauruk | Editor: Anna Suci Perwitasari

KONTAN.CO.ID – JAKARTA. Banks are trying to stimulate the property market, which is currently slowing down amidst the pressure of the Covid-19 pandemic. The slowdown in property sales has resulted in sluggish distribution of Home Ownership Loans (KPR).

The strategy in terms of mortgage interest is one of the steps the bank takes to stimulate the market. Currently, banks are competing to offer mortgage interest programs to encourage property sales and mortgage disbursements amidst the downward trend in Bank Indonesia’s benchmark interest rate, which has fallen 1% this year to 4%.

There are banks that choose to offer fixed low-interest mortgages but are only valid for one year and three years. There are also those who choose to provide certainty to customers with a slightly higher interest rate but still valid for 10 years.

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Bank Mandiri has chosen to offer several variations of the KPR interest program that can be the choice of prospective home buyers. For the lowest, this state-owned bank offers mortgage rates of 4.59% fixed for a year and 6.86% fixed lima.

Meanwhile, to provide certainty for long-term home installments, this state-owned bank offers a fixed rate of 8.88% for 10 years for Bank Mandiri employees and a fixed 9.9% for 10 years for the public.

This Bank Mandiri KPR interest program will be valid until this October for the company’s 22nd anniversary. The interest promo will also be packaged with discounts of provision and insurance fees of up to 22%.

EVP Consumer Loans Bank Mandiri Ignatius Susatyo Wijoyo said the KPR interest program was limited to one month to stimulate the market. The company realizes that only implementing online sales will not be very effective in boosting KPR distribution.

“So we provide options for end users who want to buy a house. If you want cheap interest, now is the time,” said Satyo to Kontan.co.id, Tuesday (6/10).

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Bank Mandiri offers several options for KPR interest promotions because it realizes that each person has different cash flow conditions. According to Satyo, for people who have tight cash flow at this time but have the potential to have the ability to pay more in installments in the future, the choice of the lowest interest rate that applies a year can be an option.

As for people who can measure that in the future the potential increase in their salary will not be high, a fixed promo that is valid for 10 years is most suitable for them, according to Satyo.

As for flowers floating or Bank Mandiri’s floating KPR interest rate is currently around 11.9%. Especially for the interest program 9.9% fixed 10 years will likely be extended until the end of the year. To get this promo, the KPR tenor must be at least around 12-15 years.