How Much Is a Home Down Payment? 2026 Mortgage Down Payment Rules and How to Prepare

The down payment (DP) is often the first hurdle when buying a home with a mortgage (KPR) in Indonesia. The most common question is simple: what percentage down payment do you actually need? Is there a minimum rule, and is a bigger or smaller down payment better?

This article covers the mortgage down payment rules in place in 2026, down payment simulations and their effect on instalments, and how to prepare.

What Is a Down Payment?

A down payment is the part of the home price the buyer pays upfront. The rest is financed by the bank through a KPR and repaid monthly.

For example, for a Rp 1 billion home with a 20% down payment, the buyer pays Rp 200 million upfront and the bank finances Rp 800 million.

Down Payment Rules: Bank Indonesia's LTV Ratio

The size of a mortgage down payment is linked to Bank Indonesia's Loan to Value (LTV) rule, the maximum loan a bank may provide relative to the property's value. For sharia financing, the term is Financing to Value (FTV).

• With an LTV of 90%, the bank may finance up to 90% of the home's value, so the minimum down payment is 10%.
• With an LTV of 100%, the bank may finance the full value, so the down payment can be 0%.

Currently, Bank Indonesia has relaxed the LTV and FTV ratios for property loans to up to 100% for all property types, including landed houses, apartments, and shophouses. At its Board of Governors meeting on 21 October 2026, BI extended this policy until 31 December 2027.

Two important points to understand:

• This relaxation only applies to banks that meet certain non-performing loan criteria.
• BI's rule is a maximum limit, not an obligation. Each bank may still ask for a down payment based on its own risk assessment.

So, What Percentage Down Payment in Practice?

There is no single figure for everyone. The down payment asked for usually depends on:

• The bank's policy and the KPR product chosen.
• The applicant's profile, such as income, occupation, and credit history.
• The type and value of the property, such as new or resale.
• Developer promotions, such as down payment subsidies or no down payment offers.

In practice, down payments of 10% to 20% are fairly common, but the exact figure should be confirmed directly with the bank.

Down Payment Simulation and Its Effect on Instalments

Illustrative example: a Rp 1 billion home, a 20-year tenor, and a fixed rate of 8% a year.

• 10% down payment (Rp 100 million): a Rp 900 million loan, with instalments of about Rp 7.53 million a month.
• 20% down payment (Rp 200 million): a Rp 800 million loan, with instalments of about Rp 6.69 million a month.
• 30% down payment (Rp 300 million): a Rp 700 million loan, with instalments of about Rp 5.86 million a month.

In this example, each extra 10% down payment lowers the instalment by about Rp 840 thousand a month and reduces total interest over 20 years by about Rp 100 million.

The figures above only illustrate an annuity calculation at a fixed rate and are not any particular bank's offer. In practice, mortgage rates are usually fixed at first and then floating. Calculate with your own figures in the 2026 Mortgage Calculator, and learn about rate schemes in Mortgage Interest.

Bigger or Smaller Down Payment: Which Is Better?

Advantages of a bigger down payment:

• Lower monthly instalments.
• Less total interest over the loan.
• Potentially better approval chances, as the loan portion is smaller.

Advantages of a smaller down payment:

• You can buy sooner without waiting for savings to build up.
• Cash stays available for other needs, such as an emergency fund or furnishing the home.

The best choice is a down payment that does not drain all your savings. Keep funds aside for other costs and emergencies.

Do Not Forget Costs Beyond the Down Payment

When preparing your down payment, also budget for other upfront costs:

• A booking fee.
• Buyer's taxes, namely BPHTB, plus PPN for new homes. Estimate BPHTB with the BPHTB Calculator, and see the tax summary in Property Tax in Indonesia.
• Mortgage costs, such as provision, administration, appraisal, insurance, and notary fees.

The full breakdown is in The Cost of Buying a House in 2026.

How to Prepare a Down Payment

1. Set a target home price based on what you can afford in instalments, then work out the down payment needed.
2. Open a dedicated savings account for the down payment, separate from your daily account.
3. Save automatically each month as soon as your salary comes in.
4. Cut back on consumer instalments to free up savings and keep your credit profile healthy.
5. Use extra income, such as bonuses or holiday allowances, to reach your target faster.
6. Compare developer promotions that can ease the down payment.

Down Payment Promotions from Developers

Besides bank policies, some developers offer promotions that ease the down payment. Some provide a down payment subsidy, where part of the down payment is covered by the developer, and some offer no down payment. How these schemes work and what to check is covered in No Down Payment Homes.

In Damai Putra Group areas, for example:

• The New Hoshi and CRESTA in Kota Harapan Indah, with down payment subsidy promotions.
• Feia in Segara City, with a no down payment promotion.

Promotion terms may change at any time, so please confirm the latest details with the marketing team.

Frequently Asked Questions

What percentage down payment do I need?
There is no single figure. BI currently allows financing of up to 100% for banks that meet the criteria, but each bank sets its own down payment. In practice, 10% to 20% is fairly common.

How long does the 100% LTV policy last?
Bank Indonesia has extended it until 31 December 2027.

Is a bigger down payment better?
A bigger down payment lowers instalments and total interest, but it should not use up all your savings. Keep funds for other costs and emergencies.

What is the difference between a down payment subsidy and no down payment?
A subsidy means part of the down payment is covered by the developer, while no down payment means the buyer pays none at all. Ask about the details, as the effect on instalments can differ.

Does the down payment include taxes and notary fees?
No. The down payment is only part of the home price. Taxes, mortgage costs, and notary fees need to be prepared separately, unless covered by a promotion.

This article is general information and not financial advice. Down payment and mortgage terms differ between banks, so please confirm the details directly with your chosen bank.

For more information about Damai Putra Group homes and promotions, contact the Damai Putra Group Marketing Gallery via WhatsApp Official 0811 4466 888 or visit www.damaiputra.com.