One of the facilities that can be used for your home is having credit (a mortgage). The source of mortgage financing could come from national banks, international banks, and Islamic banks.
Settled on a very rational mortgage when house prices are continuing to soar people who can afford to buy the house in cash are very rare. This is the reason why so many mortgage products offered by banks. All of them will want your business, and will call it’s offer superior. For example, the ease of the application process, reduction of administrative costs, low interest rates and so forth.
In spite of all the ‘benefits’ on offer, the consumer can still see the magnitude of the interest rate. Interest rates are the primary consideration in determining the choice of a bank mortgage. Naturally, if the term appears ‘cheap’, this cannot be so as mortgages are always identical keeping to the interest rates at the time.
The point about advertising ‘low’ or ‘best’ interest rates is that the bank’s priority is finding new customers. As a result, the amount of the interest rate offered by the bank is increasingly diverse. The same is true in the choice the customer has, namely the flat rate (fixed) or floating interest rates.
The average interest rate charged by the commercial banks (commercial) in the range of 8-9 percent is called by the flat rate that on average is valid for two years (the rate will stay the same). After that, the bank will charge a floating interest rate (up and/or down).
The Islamic mortgage is a product of Islamic banks in the financing of the home does not use the term interest. Sharia mortgage financed by using the principle of trading (Murabaha). That is, the installment payments have been set in advance and paid every month. The selling price is usually coupled with a profit margin agreed between Islamic banks and the buyers.
This mechanism makes monthly installments to be fixed at the end of the loan period. The amount of sharia mortgage installments will not be affected from changes in interest rates throughout the loan period. This system means customers do not have to worry if at any time the interest rate skyrockets. Besides other advantages is the absence of a penalty imposed if the customer wants to pay off the loan.
Just for the record, the current Islamic banks also have been subject to the rules of the loan to value (LTV) of Bank Indonesia. That is, homes above 70 square meters are still subject to a mandatory deposit or down payment of 30 percent.