Getting a Mortgage in Bali as an Expat: Requirements & Rates

Disclaimer: This article is for informational purposes only. Foreign property ownership regulations and financing options in Indonesia can be complex and subject to change. We recommend speaking with a senior advisor before making any final decisions.

Key Takeaways

• Getting a mortgage in Bali as an expat is possible, but banks usually require a KITAS/KITAP, proof of income, strong credit history, and a large down payment
• Bali mortgage rates are usually around 7% to 12% per year, with loan tenures commonly limited to 10–15 years.
• Some Indonesian banks that offer financing options for eligible foreign buyers including Permata Bank, Commonwealth Bank, HSBC, and J Trust Bank.
• If you do not qualify for a mortgage, alternatives include developer installment plans, PT PMA financing, or offshore loans from your home country

Getting a mortgage in Bali as an expat is possible, but it comes with a strict set of requirements.

Indonesian banks generally operate conservatively when lending to non-citizens because foreign buyers cannot directly hold a Freehold Title (Sertifikat Hak Milik or SHM) and may carry a higher risk of leaving the country.

As a result, mortgage requirements in Indonesia typically involve higher down payments, limited eligible property options, and lower loan coverage. Most banks usually finance only around 50% to 70% of the property’s value, and leasehold properties are generally not accepted as loan collateral.

So, before you decide to apply for a loan to fund your property purchase or investment, let’s look at the details below.

Requirements for Foreigners to Get Local Financing From Indonesian Banks

These are some of the common requirements for foreign buyers applying for a mortgage in Indonesia. Please note that each bank may have different policies and additional requirements, so always conduct further checks directly with the bank.

• Residency Permit: Foreign buyers typically need to hold a valid KITAS (Temporary Stay Permit) or KITAP (Permanent Stay Permit) to qualify for a mortgage.
• Proof of Income: Banks require proof of stable income, usually through employment contracts, business ownership documents, or financial statements.
• Down Payment: A substantial down payment, typically 40% of the property value, is usually required.
• Credit History: A good credit history from the buyer’s home country may be required. Indonesian banks may also conduct their own credit assessments.
• Collateral: The property itself generally serves as collateral for the loan. Some banks may request additional guarantees or collateral.
• Indonesian Bank Account: Opening a local bank account in Indonesia is necessary to manage loan payments and related transactions.

In addition, according to Article 186 of the Agrarian and Spatial Planning/National Land Agency Regulation Number 18/2021, leasehold properties are also not accepted as loan collateral.

Read More: Do You Need a Specific Visa to Buy a Villa in Bali?

Restricted Nationalities and High-Risk Jurisdictions

It is important to note that some nationalities may face restrictions when applying for loans in Indonesia.

As of the latest FATF update in February 2026, three countries are listed as High-Risk Jurisdictions subject to a Call for Action (commonly known as the FATF “blacklist”):

1. Iran
2. North Korea / DPRK
3. Myanmar

Why are these countries blacklisted? They are considered high risk because of serious weaknesses in their systems for preventing money laundering, terrorist financing, and the financing of weapons of mass destruction.

FATF also publishes a list of countries under increased monitoring, often called the grey list:

• South Africa
• Bulgaria
• Burkina Faso
• The Philippines
• Haiti
• Cameroon
• Kenya
• Croatia
• Mali
• Monaco
• Mozambique
• Namibia
• Nigeria
• The Democratic Republic of the Congo
• Senegal
• South Sudan
• Syria
• Tanzania
• Venezuela
• Vietnam
• Yemen

These countries have committed to fixing the strategic weaknesses identified by FATF within an agreed timeframe and are subject to closer monitoring.

Countries under increased monitoring may still face stricter checks from banks and financial institutions, depending on the lender’s internal risk policy. Therefore, foreign buyers from these jurisdictions should confirm their eligibility directly with the relevant bank or financing provider before applying for a mortgage in Indonesia.

Understanding Bali Mortgage Rates and Loan Terms

Indonesian banks generally reduce risk exposure by requiring higher down payments and offering shorter loan tenures.

Note: Because Bali mortgage rates are relatively high compared to many Western countries, relying entirely on local bank financing can significantly reduce your net rental yields.

Read More: Can Foreigners Buy Property in Bali? Full Legal Guide for You

Indonesian Banks That Provide Mortgages for Foreigners

Some banks offer specific financing products designed to accommodate foreign buyers in Indonesia.

1. Permata Bank (Permata Syariah)

Permata Bank offers mortgage financing for foreigners through a specialized product called Permata KPR iB IMBT WNA, designed to finance residential property purchases.

Eligibility requirements include:

• Applicants must have lived and worked in Indonesia for at least 2 years, or operated a local business for a minimum of 4 years.
• Applicants must possess valid identification documents, including a passport, ITAS/ITAP stay permit, and proof of legal income.
• A minimum individual monthly net income of IDR 25 million is required.
• The property must have a minimum value of IDR 2 billion, with a maximum Loan-to-Value (LTV) ratio of 60%.
• The minimum loan amount starts from IDR 1 billion.
• The property must hold SHGB (Right to Build) status. Properties with SHM (Freehold Title) status must first be converted.
• Only ready-to-occupy properties are eligible.

Interestingly, this financing program is not limited to professionals or salaried employees. Foreign entrepreneurs may also apply under certain terms and conditions.

2. Commonwealth Bank

Commonwealth Bank also provides mortgage solutions for foreign buyers in Indonesia under several conditions, including:

• A valid passport
• A valid KITAS (Temporary Stay Permit) or KITAP (Permanent Stay Permit)
• Applicants must have a residential address in the same city as the bank branch processing the mortgage, including the residence, workplace, and property location.
• A local NPWP (tax identification number), if applicable
• Bank statements or financial transaction history
• Legal property documents (SHM or SHGB) used as collateral

This type of financing is generally limited to secured home loans (KPR) and multipurpose loans backed by collateral. Loan limits range from IDR 100 million to several billion Rupiah, typically covering up to 80–90% of the collateral value.

Unsecured personal loans (KTA) from Commonwealth Bank are only available to Indonesian citizens.

3. HSBC

Foreign nationals may also apply for financing through HSBC Indonesia, provided they hold a valid KITAS or KITAP and legally reside in Indonesia.

Requirements include:

• A valid passport and KITAS/KITAP
• Employment or expatriate status in Indonesia with the required minimum income level (typically around IDR 72 million to IDR 100 million annually)
• Salary slips, employment verification letters from an Indonesian company, and an NPWP (tax identification number)

4. J Trust Bank

J Trust Bank offers competitive mortgage rates and flexible repayment terms of up to 30 years for foreign buyers. The bank also provides financing of up to 80% of the total property value, subject to Indonesian property regulations.

Eligibility requirements include:

• Applicants must reside in Indonesia.
• A valid passport copy
• A valid KITAS or KITAP copy
• Complete property documents, including certificates, IMB/PBG, and PBB documentation
• Bank statements or savings account records from the last 3 months
• The maximum age at loan maturity is 55 years for employees and 65 years for entrepreneurs or professionals.
• Applicants must demonstrate stable income and employment.
• Employees must have at least 2 years of total work experience, including previous employment.
• Entrepreneurs and professionals must have a minimum of 3 years of experience in their current field or industry.

Steps to Apply for a Mortgage Through Indonesian Banks

1. Eligibility Review: Start by confirming that you meet the bank’s basic lending criteria, including income level, employment status, and credit background.
2. Document Preparation: Gather all required paperwork, such as your passport, tax documents, bank statements, and proof of income.
3. Initial Approval Check: Some banks offer an early screening or online application process to assess whether you are likely to qualify for mortgage financing.
4. Property Valuation: The bank will arrange an appraisal to determine the value of the property you plan to purchase.
5. Loan Agreement Signing: After the mortgage is approved and the property value is confirmed, the borrower and bank proceed with signing the loan agreement.
6. Legal and Registration Process: The required documents are notarized, and the property registration process is completed through the relevant government offices.
7. Final Loan Submission: The bank completes the final review based on the submitted documents, approved property valuation, and mortgage agreement.

Minimum Property Price for Mortgage Applications

Under Indonesian government regulations, foreign buyers must purchase property above a certain minimum value when applying for a mortgage in Indonesia:

Read More: 2026 Bali Property Price Guide: Villas, Land, Houses & Apartments

Bonus: Smart Financing Alternatives for Foreign Investors With Limited Capital

Even if you do not qualify for a mortgage, there are still several safe ways to finance your Bali real estate investment.

1. Developer-Financed Installment Plans (Off-Plan Buying)

One of the most popular financing methods in Bali does not involve banks at all. Many developers provide structured installment plans for off-plan construction projects.

In off-plan investment, buyers typically pay a 10% to 30% deposit to secure the property through a notary escrow arrangement.

The remaining balance is then paid in interest-free installments during the construction period, usually over 12 to 24 months and tied to construction milestones.

Read More: Investing in Off-Plan Villa Bali 2026: Pros, Cons, and ROI

2. Corporate Financing Through a PT PMA

Setting up a foreign-owned company (Perseroan Terbatas Penanaman Modal Asing or PT PMA) can unlock broader commercial financing opportunities.

A PT PMA can legally hold HGB titles, build a portfolio of villas, and qualify for business financing through local commercial banks or private equity lenders.

3. International Equity & Offshore Loans

Many investors bypass Indonesian financial institutions entirely by refinancing properties in their home countries.

Securing a lower-interest home equity loan or personal line of credit in Europe, Australia, or the Americas may allow buyers to purchase property in Bali as cash buyers, avoiding complex local financing procedures and relatively high Indonesian interest rates.

Conclusion

Getting a mortgage in Bali as an expat is possible, but it is not always simple. So, it’s important to understand the full process before applying.

If you do not qualify, there are still other ways to finance your Bali property investment, such as developer installment plans, corporate financing through a PT PMA, or offshore loans from your home country.

Before making any financial decision, always speak with a trusted property advisor, legal consultant, or bank representative. With the right guidance, you can choose the safest financing option and move forward with your Bali real estate investment more confidently.

FAQ