Can foreigners get mortgages for Bali property in 2025?

Authored by the expert who managed and guided the team behind the Indonesia Property Pack

Yes, the analysis of Bali's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Bali. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Denpasar, Ubud, and Seminyak. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

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Daniel Rouquette 🇫🇷

CEO & Co-Founder at Villa Finder

Daniel Rouquette is very knowledgeable about the Bali villa market, as Villa Finder offers a vast selection of properties across the island. As the CEO and Co-Founder of Villa Finder, he has been leading the company since 2012, providing high-quality villa rentals and personalized concierge services. With over 4,000 villas in 28 destinations, Villa Finder has become a trusted name in luxury short-term rentals in the Asia-Pacific region.

Can foreigners legally own property in Bali or is it only leasehold rights?

Foreigners cannot own land outright in Bali, as Indonesian law restricts freehold land ownership to Indonesian citizens only.

Foreigners can legally control and profit from Bali property through three main structures: leasehold rights (Hak Sewa), Right to Use permits (Hak Pakai), or ownership through a foreign investment company (PT PMA). Each structure offers different levels of control and security for property investors.

Leasehold agreements typically run for 25-30 years with renewal options, while Hak Pakai provides up to 25 years of extendable use rights that are registered with Indonesian land authorities. PT PMA ownership allows foreigners to hold property through a qualifying foreign-owned company structure, primarily used for commercial or investment purposes.

It's something we develop in our Indonesia property pack.

What types of property in Bali are eligible for mortgage financing in 2025?

Villas, apartments, and commercial units are all eligible for mortgage financing in 2025, provided they are held under proper legal structures that banks accept.

Properties held under Hak Pakai, leasehold agreements, or PT PMA structures can qualify for mortgage financing from Indonesian and international lenders. Banks typically require properties to have clear, documented titles and be located in areas approved for foreign investment.

Freehold properties are not directly eligible for foreigner mortgages unless first converted to Hak Pakai or held through a compliant company structure. Residential villas and apartments in established developments generally have the smoothest approval process, while commercial properties may face additional scrutiny and requirements.

Which banks or financial institutions in Indonesia currently offer mortgages to foreigners?

A limited selection of Indonesian and international banks provide mortgage services to qualified foreign buyers in Bali as of September 2025.

Bank Type	Institution	Special Programs
Indonesian Banks	Permata Bank	KPR iB IMBT WNA program for foreigners
Indonesian Banks	Commonwealth Bank Indonesia	Standard foreign mortgage products
Indonesian Banks	J-Trust Bank	Specialized foreigner lending
Indonesian Banks	Permata Syariah Bank	Islamic financing options
International Banks	HSBC Indonesia	International client services
International Banks	LHV Bank (Estonia)	European-based lending solutions

What is the minimum down payment percentage required for foreigners buying Bali property with a mortgage?

Foreigners must provide a minimum down payment of 30-50% of the property value when applying for Bali property mortgages.

The exact down payment percentage varies by bank, applicant profile, and property type, with some institutions demanding higher amounts if they perceive increased risk or insufficient documentation. Well-qualified applicants with strong financial profiles and complete documentation may secure financing with 30% down, while others may need to provide 50% or more upfront.

Banks evaluate factors including the applicant's income stability, residency status, property location, and legal structure when determining down payment requirements. Properties in prime locations with clear titles typically require lower down payments than those in remote areas or with complex ownership structures.

What are the interest rates in 2025 for foreigner mortgages compared to Indonesian buyers?

Foreigners pay significantly higher mortgage interest rates than Indonesian citizens, with rates ranging from 8-12% annually for most international applicants.

Indonesian banks typically offer foreigners interest rates between 8-12% per year, while some international lenders like LHV Bank may provide rates starting from 2.99% plus Euribor for qualified European clients. Indonesian citizens generally access much lower rates, typically ranging from 6-8% annually.

The interest rate differential reflects the higher risk profile that banks assign to foreign borrowers, including currency exchange risks, regulatory uncertainties, and the challenges of pursuing collections across international borders. Applicants with strong financial profiles and established Indonesian business ties may negotiate slightly better rates.

What is the maximum loan-to-value (LTV) ratio that foreigners can expect to qualify for?

Foreign buyers can typically access 50-70% loan-to-value ratios, meaning they can finance 50-70% of the property purchase price through mortgage loans.

Most Indonesian banks limit foreign borrowers to maximum LTV ratios of 50-70%, significantly lower than the 80-85% ratios commonly available to Indonesian citizens. The exact LTV depends on factors including the applicant's financial strength, property type and location, legal ownership structure, and the specific bank's risk assessment policies.

Properties with clear titles in established developments typically qualify for higher LTV ratios, while unique properties or those in emerging areas may face more conservative lending limits. Banks also consider the applicant's overall debt-to-income ratio when determining maximum loan amounts.

What is the average loan term length available to foreigners purchasing Bali property?

Mortgage loan terms for foreigners typically range from 10-30 years, depending on the applicant's age, financial profile, and bank policies.

Most banks offer maximum loan terms of 30 years for qualified foreign applicants, though the actual term may be limited by the borrower's age at loan maturity. Banks generally require loans to be fully repaid before the borrower reaches age 65-70, which can significantly reduce available loan terms for older applicants.

Shorter loan terms of 10-20 years are common for applicants with limited Indonesian residency history or those purchasing properties with complex ownership structures. The loan term also affects interest rates, with longer-term loans sometimes carrying higher rates to compensate for extended risk exposure.

What specific visa or residency status does a foreigner need in order to qualify for a mortgage in Bali?

Banks require foreigners to hold at least a KITAS (Temporary Stay Permit) or KITAP (Permanent Residency) to qualify for mortgage financing.

1. **KITAS (Kartu Izin Tinggal Terbatas)** - Temporary residence permit valid for 1-5 years depending on purpose2. **KITAP (Kartu Izin Tinggal Tetap)** - Permanent residence permit for long-term residents3. **Investment visa** - Special permits for significant investors may qualify under certain conditions4. **Work permits** - Employment-based residency combined with KITAS meets most bank requirements5. **Retirement visa** - Long-term retirement permits accepted by most lenders

Tourist visas and visitor permits are not accepted for mortgage applications by any Indonesian banks. Some PT PMA ownership structures may have more flexible residency requirements for significant investors, but these arrangements primarily serve commercial rather than residential property purchases.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What documents and proof of income do Indonesian banks typically require from foreigners applying for a mortgage?

Indonesian banks require extensive documentation from foreign mortgage applicants, significantly more than what Indonesian citizens must provide.

1. **Identity and residency documents** - Valid passport, KITAS/KITAP permits, and Indonesian taxpayer registration (NPWP)2. **Income verification** - Employment letters, salary slips covering 6-12 months, and business registration documents if self-employed3. **Financial statements** - Bank statements from both home country and Indonesian accounts covering 6-12 months4. **Credit history** - Credit reports from home country and any Indonesian credit history if available5. **Property documentation** - Sales purchase agreement, property title deed, and legal structure documents for PT PMA ownership6. **Professional references** - Employer verification, business partner confirmations, and character references from established Indonesian contacts

The documentation process typically takes 2-6 months to complete, with banks conducting thorough verification of all submitted materials. Some banks may require additional documents based on the applicant's specific situation or the complexity of the property transaction.

What are the typical closing costs, taxes, and legal fees foreigners must pay when buying with a mortgage in Bali?

Total closing costs for foreigners typically range from 7-10% of the property purchase price, significantly higher than cash transactions.

The BPHTB title transfer tax represents the largest single cost at 5% of the property value, paid by the buyer regardless of financing method. Notary and legal fees typically add 1-1.5% of the transaction value for document preparation and legal compliance verification.

Mortgage-specific costs include deed registration fees and land registry updates that can add up to 1% more to the total transaction cost. Agent fees, property inspections, due diligence reviews, and appraisal costs may contribute another 1-2% depending on the complexity of the transaction and services required.

It's something we develop in our Indonesia property pack.

Are there restrictions on the type of property (villa, apartment, commercial) that a foreigner can mortgage in Bali?

Foreigners can mortgage residential villas, apartments, and commercial units, but only if held under legal structures that banks accept for financing.

Leasehold villas and apartments in established developments generally receive the most favorable mortgage terms from Indonesian banks. Commercial properties including office spaces, retail units, and mixed-use developments are also eligible but may face stricter evaluation criteria and higher down payment requirements.

Freehold-only properties and agricultural land remain off-limits for foreign mortgage financing unless converted to eligible ownership structures. Banks also avoid financing properties in certain restricted zones or those with unclear title histories, regardless of the ownership structure used.

What are the main risks or limitations foreigners should be aware of before taking a mortgage for Bali property in 2025?

Foreign mortgage holders face significant risks including regulatory changes, title fraud, and forced loan repayment if residency status lapses.

Indonesian property regulations can change with limited notice, potentially affecting foreign ownership rights or mortgage availability. Land title fraud remains a persistent risk in Bali, with some properties having disputed ownership or fraudulent documentation that can invalidate mortgage collateral.

Leasehold properties typically have lower resale values than freehold properties, making it harder to recover the full mortgage amount upon sale. Banks may call loans immediately if the borrower's visa or residency permit expires, creating pressure to maintain legal status or face foreclosure. The mortgage approval process is significantly longer and more complex for foreigners, often requiring 3-6 months compared to 4-8 weeks for Indonesian citizens.

Currency exchange risks also affect foreigners earning income in other currencies, as mortgage payments must typically be made in Indonesian Rupiah, exposing borrowers to exchange rate fluctuations that can increase effective payment amounts.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Neginski - Foreigners Buying Property in Bali Legal Options
2. World Estate - Mortgage for Buying Real Estate in Bali 2025
3. The Jakarta Post - Permata Bank Foreign Mortgage Program
4. Exotiq Property - Bali vs Thailand Investment Comparison
5. BambooRoutes - Foreigner Mortgage Bali Guide
6. iLot Property Bali - Indonesian Property Loans for Foreigners
7. Wise - How to Buy Property in Indonesia
8. DSG Pay - Buying Property in Indonesia for Foreigners