Subsidized Mortgage Interest Stays 5% Despite BI Rate Hike
Jakarta. The government said Friday that the subsidized mortgage interest rate would stay at 5% despite the central bank's recent move.
Bank Indonesia raised its benchmark interest rate by 25 basis points to 5.75% on Thursday. Housing Minister Maruarar Sirait told reporters that the government would make sure that housing financing remains affordable for the low-income communities.
"To this day, we have not raised it [the interest rate for subsidized mortgage]," Maruarar said.
"These subsidies are for the low-income households who deserve it."
In other words, the interest rate for the subsidized mortgages would remain at a fixed rate of 5% throughout the tenor.
Aside from the higher BI Rate, the central bank also lifted the deposit facility interest rate by 25 basis points to 4.75%. Lending facility interest rate also rose by 25 basis points to 6.5%.
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