{
    "success": true,
    "data": {
        "id": 1757753,
        "msgid": "dont-go-bust-the-ideal-mortgage-repayment-cap-based-on-salary-1779542112",
        "date": "2026-05-22 16:28:52",
        "title": "Don't Go Bust: The Ideal Mortgage Repayment Cap Based on Salary",
        "author": "Sakina Rakhma Diah Setiawan",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Finance",
        "summary": "With Bank Indonesia's benchmark rate rising to 5.25%, monthly mortgage payments may rise, especially for floating-rate loans. The article explains the 28\/36 rule (28% for housing costs and 36% for total debt) and how front-end and back-end debt-to-income ratios guide mortgage approvals. It also notes that higher rates could make instalments more expensive than during a period of lower rates.",
        "content": "<p>Jakarta \u2014 The rise in Bank Indonesia\u2019s benchmark rate (BI Rate) to\n5.25 percent once again affects households\u2019 calculations when taking out\na home loan (KPR). When the BI rate increases, monthly mortgage payments\ncan rise, particularly for floating-rate loans. In this context, the\nquestion many people ask is: what percentage of salary should ideally be\nallocated to mortgage payments? This ratio is one of the key benchmarks\nbanks use to assess creditworthiness.<\/p>\n<p>In practice, the rule most commonly used is the \u201828\/36 rule\u2019. The\nrule states that a maximum of 28 percent of gross monthly income should\nbe allocated to housing costs, including mortgage payments, property\ntax, and home insurance. Meanwhile, total monthly debt, including the\nmortgage, should not exceed 36 percent of monthly income. Additionally,\ntotal other instalments such as credit cards, vehicle loans, or personal\nloans should not exceed Rp 3.6 million per month.<\/p>\n<p>Investopedia notes that many lenders use this ratio as a reference in\nthe mortgage approval process because it is thought to reflect the\nborrower\u2019s ability to maintain financial health in the long term. The\n28\/36 rule is also related to the front-end debt-to-income ratio or\nmortgage-to-income ratio, i.e., the percentage of monthly income used\nspecifically for housing costs. Meanwhile, the back-end ratio calculates\ntotal debt obligations relative to monthly income. This component\nincludes mortgage payments, vehicle payments, credit cards, and other\nloans.<\/p>\n<p>The rise in the BI Rate to 5.25 percent makes these calculations more\nimportant. A higher benchmark rate is usually followed by increases in\nbank lending rates, including for mortgages. Consequently, monthly\ninstalments could become more expensive than when rates are low.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/dont-go-bust-the-ideal-mortgage-repayment-cap-based-on-salary-1779542112",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}