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When applying for a loan such as a Mortgage (KPR) at a bank, the term 'threshold credit limit' often arises. According to the Great Dictionary of the Indonesian Language (KBBI), 'threshold' refers to the maximum limit (of costs, credit, etc.) provided.
In the loan application process, the amount granted by the bank or other financial institutions to the customer will not exceed the predetermined threshold.
In this article, Lets Move Group will discuss the meaning of the Threshold Credit Limit in applying for a Mortgage (KPR), factors influencing the value of the Mortgage Threshold, how to calculate the Threshold, and leading banks that offer relatively high Mortgage loan Thresholds.
Mortgage Threshold: Definition, Determining Factors, and How to Obtain It
What Is 'Threshold' According to KBBI?
According to the Great Dictionary of the Indonesian Language (KBBI), 'threshold' refers to the highest limit or maximum value set for something, whether in a physical context (such as a ceiling) or non-physical (such as a budget or loan).
What Is a Mortgage Threshold?
In finance, threshold credit limit is the maximum amount of money that can be lent or allocated for a financial product, such as credit, loans, or financing. This is determined based on the debtor's feasibility analysis and the financial institution's policies.
A Mortgage Threshold (Kredit Pemilikan Rumah or KPR) is the maximum amount of funds approved by the bank for property financing, calculated based on the property's value, the borrower's repayment ability, and the Loan-to-Value (LTV) provisions set by the Financial Services Authority (OJK). For example, for a house valued at IDR 1 billion with an LTV of 80%, the Mortgage Threshold would be IDR 800 million.
Example of a Threshold Credit Limit
The concept of a threshold is applied in finance as the loan limit that can be applied for when submitting a Mortgage (KPR).
For example, if a customer wants to purchase a house priced at IDR 2 billion and, after applying for a Mortgage (KPR) programme, the bank sets a threshold of 70%, the customer can only borrow IDR 1.4 billion, while the remaining 30% must be provided as a down payment. This reflects the function of the threshold as a risk control measure for both the bank and the borrower.
Factors That Help Determining the Mortgage Threshold
In Indonesia, each bank has different policies in setting the Mortgage (KPR) credit threshold (maximum loan limit). Certain banks have higher credits, or even lower total credit, as well as varying rules based on risk profiles, financial capabilities, and target markets. Here are some factors that determine the Mortgage Threshold provided by banks to customers:
1. Income
The financial capability of the debtor is assessed through income, credit history, and owned assets. Cash flow also influences the credit score decision provided by the bank offering the Mortgage (KPR) programme.
The bank will assess:
- Income stability (whether fixed/monthly or variable)
- Installment-to-income ratio (usually a maximum of 30-40% of monthly income)
- Financial history (bank statements, payslips, or tax reports)
- Assets or savings (as additional collateral support)
Typically, these requirements are provided at the initial application stage or requested during form filling before applying for a home purchase Mortgage (KPR).
2. Financial History (Credit Score)
Previous payment history or installments are factors that determine credit score from the Financial Information Service System (SLIK) of OJK to serve as a credit report. This score will determine creditworthiness, whether the debtor has a smooth history or issues such as bad credit.
Lenders generally prefer prospective debtors with a minimum Credit Score of "Good," (paid bills on time), while borrowers with poor credit history risk being rejected or given a lower threshold.
3. Appraisal
In addition to debtor factors, the value of the property collateral is also a key determinant through the appraisal process. Banks usually provide loans amounting to 70-90% of the max. property's assessed limit based on the property's legality, location, and physical condition.
| Perlu Kamu Ketahui:
Beberapa bank memiliki program khusus seperti KPR subsidi (FLPP) dengan plafon terbatas untuk masyarakat berpenghasilan rendah, sementara bank syariah menggunakan prinsip akad tertentu dalam perhitungan marginnya. Oleh karena itu, penting bagi calon debitur untuk membandingkan penawaran dari berbagai bank atau berkonsultasi dengan konsultan KPR sepeti Lets Move Group untuk mendapatkan skema KPR yang paling sesuai dengan kebutuhan dan kemampuan finansial mereka. |
Available Credit Limits Across Several Bank Lenders
BNI Threshold Credit Limit
BNI Griya provides a comprehensive mortgage facility for a variety of property needs—ranging from purchase, construction, and renovation, to refinancing (take over) of residential homes, apartments, shop-houses, and even plot land. With an attractive interest rate starting at 4.5% and a threshold credit limit of up to IDR 20 billion, this product is suitable for a wide spectrum of borrowers.
Key Features:
- Competitive interest starting at 4.5%
- Threshold credit limit up to IDR 20 billion
- Available for both new and pre-owned properties
- Easy application via official channels
BCA Threshold Credit Limit
BCA offers a flexible KPR programme with a maximum amount of credit limit between IDR 250 million to IDR 5 billion and a maximum tenure of 25 years. In 2024, BCA introduced a special interest rate starting from 2.67%
Sample Calculation:
- Property price: IDR 300 million
- 20% deposit: IDR 60 million
- Monthly Installments:
- Year 1–3: IDR 1.4 million/month (interest 3.68%)
- Year 4 onwards: IDR 2.4 million/month (estimated interest 12%)
Find Out More
BTN Threshold Credit Limit
BTN presents a flagship mortgage solution through KPR Platinum, featuring:
- No maximum limit on threshold credit
- Loan tenor up to 30 years
- Fast-track processing with insurance coverage
- Partnerships with hundreds of leading property developers
Mandiri Threshold Credit Limit
Bank Mandiri offers one of the highest threshold credit limits in the market for its customers.
- Credit limit up to IDR 25 billion
- Maximum tenure of 20 years
- Special scheme for Mandiri payroll clients with low initial deposit
- Access to over 900 developer projects nationwide
Find Out More
BRI Threshold Credit Limit
As one of Indonesia’s largest state-owned banks, BRI caters to millions of clients with accessible and affordable KPR options.
- Threshold credit between IDR 200 million to IDR 4 billion
- Effective interest rate starting at 2.88% in 2024
- Streamlined and user-friendly application process
Find Out More
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How to Apply & Get High Credit Limit According to Your Needs
Understand how to secure and adjust your Mortgage (KPR) threshold credit limit to match your personal financial circumstances. Here are some practical strategies from the experts at Lets Move Group.
Choose a Property That Matches Your Financial Capability
One of the most common mistakes prospective buyers make is aiming for a home that stretches their finances too thin. Don’t fall into the trap of chasing luxury properties if your budget doesn't align. Take a thoughtful approach by assessing:
- Your monthly income
- Regular expenses
- Your ability to save for a deposit
By selecting a property that realistically fits your financial position, you’re more likely to obtain a Mortgage limit that aligns with your affordability, without putting your family’s finances at risk.
Adjust Your Deposit (Down Payment)
The deposit isn’t just a formality—it plays a vital role in influencing your Mortgage threshold. The larger the down payment you’re able to provide, the lower the risk perceived by the bank, and the greater your chances of securing a higher KPR limit.
LMG’s expert tip: Set aside at least 20–30% of the property value as your ideal deposit.
New Credit: Negotiate Instalments and Interest Rates
Never feel pressured to accept the first offer from a bank. As a smart borrower, you’re entitled to negotiate for:
- Longer tenures with lighter monthly payments
- Competitive interest rates through promotional programmes
- Reduced administration fees
Consider working with a professional Mortgage consultant such as Lets Move Group to assist you in navigating these negotiations with confidence.
What Is a Mortgage Threshold Drop and Why Does It Happen?
A “Mortgage threshold drop” refers to the reduction in the maximum approved loan limit after the bank completes a reassessment. This often occurs due to factors such as changes in banking regulations, decrease in property valuation. the borrower's financial profile no longer aligning with updated bank criteria
This situation can be challenging, especially if you’ve already set a clear budget. So, how can you prevent it from happening?
Tips Agar Plafon Pinjaman Tidak Turun dan Sesuai dengan Keinginan
Conduct Thorough Research
Before applying for a Mortgage, make sure you understand the various loan products offered by different banks. Compare interest rates, repayment periods, and the most recent policies on Threshold Credit Limits. Use resources like bank websites, financial advisors, or a trusted KPR consultant.
Increase Your Deposit
A higher deposit typically results in better trust from the bank. Ideally, prepare to pay at least 30% of the property price up front. This significantly reduces perceived risk and can influence a more generous Mortgage approval.
Negotiate Monthly Repayments
If the bank’s approved limit falls short of your expectations, try negotiating the monthly repayment amount. Clearly present your financial capacity—this includes stable income, minimal liabilities, and a positive credit history.
Discuss Interest Rates
Interest rates have a major impact on your Mortgage limit. Where possible, opt for a fixed interest rate early on, or if applying for a Sharia-compliant KPR, try negotiating the bank’s profit margin.
Apply with Another Bank
Don’t limit yourself to just one bank. Explore and compare Mortgage limits from several providers. Working with a Mortgage consultant like Lets Move Group can simplify the process, giving you access to better deals without the administrative hassle.
How to Calculate Your Mortgage Threshold Credit Limit
Understanding how your Mortgage Threshold Credit Limit is calculated is a crucial step before applying for property financing. Here are the standard calculation methods used by banks, along with a few tips to help you maximise your borrowing potential:
1. Based on Financial Capacity (Debt Service Ratio – DSR)
Most banks allocate a maximum of 30–40% of your monthly income to mortgage repayments.
Formula:
Mortgage Limit = (Monthly Income × DSR) ÷ (Monthly Interest Rate + 1/Tenure in Months)
Example:
- Monthly income: Rp 15 million
- DSR 30% → Rp 4.5 million/month
- Interest rate: 10% p.a., tenure: 15 years (180 months)
Maximum repayment = (Rp 15M × 30%) = Rp 4.5M/month Threshold Credit Limit = Rp 4.5M ÷ [(10%/12) + (1/180)] ≈ Rp 500 million
2. Based on Property Value (Loan to Value – LTV)
Most banks will fund 80–90% of the property’s value, though this may be lower for second-hand homes.
Formula:
Mortgage Limit = Property Value × LTV Percentage
Example:
- Property price: Rp 1 billion
- LTV 80% → Mortgage Limit = Rp 800 million
Additional Determining Factors
- Borrower’s Age: Older borrowers (especially over 50) are often given shorter mortgage terms.
- Credit History: A strong credit score can increase your eligible limit.
- Type of Property: New builds usually qualify for a higher LTV ratio compared to second-hand homes.
Apply for a Mortgage Easily and Efficiently with Lets Move Group
As a trusted partner in Indonesia’s property market, Lets Move Group offers a Mortgage (KPR) application service that’s not only fast and reliable, but also stress-free and straightforward.
