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
Getting a mortgage as a foreigner in Bali is possible but challenging, with Indonesian banks requiring residency permits and typically demanding 30-50% down payments.
As of June 2025, several Indonesian and international banks offer mortgage solutions to foreign residents, though interest rates for foreigners typically range from 8-12% annually from local banks, while international lenders may offer more competitive rates starting from 2.99% plus Euribor. Most lenders require at least a KITAS residency permit, substantial documentation, and often use the Bali property itself as collateral.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Foreigners can obtain mortgages in Bali through Indonesian banks like Permata Syariah and J-Trust Bank, or international lenders like LHV Bank, but must have residency permits and meet strict requirements.
Down payments typically range from 30-50% of property value, with interest rates between 8-12% for local banks, while loan terms can extend up to 30 years for qualified applicants.
| Aspect | Indonesian Banks | International Banks |
|---|---|---|
| Residency Required | Yes (KITAS/KITAP) | Varies (some accept foreign collateral) |
| Down Payment | 30-50% | 30-70% LTV |
| Interest Rates | 8-12% annually | 2.99% + Euribor (LHV) |
| Loan Duration | 10-30 years | Up to 30 years |
| Collateral | Bali property primarily | Can accept foreign property |
| Processing Time | 4-8 weeks | 2-6 weeks |
| Documentation | Extensive local requirements | International standards |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
Is it actually possible for a foreigner to get a mortgage in Bali today?
Yes, foreigners can obtain mortgages in Bali as of June 2025, but the process involves significant restrictions and requirements.
Indonesian banks are cautious when lending to foreigners and typically require legal residency status, stable income documentation, and substantial down payments. The approval process is more stringent compared to what Indonesian citizens experience, with banks conducting thorough background checks and financial assessments.
Several Indonesian banks including Permata Syariah Bank, Commonwealth Bank Australia, and J-Trust Bank Japan currently offer mortgage facilities to qualified foreign residents. International banks and alternative lenders also provide solutions, though terms and conditions vary significantly from those available to local citizens.
The key challenge for most foreigners is meeting the residency requirements, as nearly all Indonesian banks require at least a KITAS (Temporary Stay Permit) to even consider a mortgage application. Without proper residency documentation, your options become extremely limited and expensive.
Success rates for foreign mortgage applications have improved since 2023, but expect a longer processing time and more documentation compared to local applicants.
Which Indonesian or international banks currently offer mortgages to foreigners in Bali?
Several banks actively provide mortgage services to foreigners in Bali, divided between Indonesian institutions and international lenders.
| Bank Type | Bank Name | Key Features |
|---|---|---|
| Indonesian Banks | Permata Syariah Bank | Strict requirements, competitive rates for residents |
| Indonesian Banks | Commonwealth Bank (Australia branch) | International standards, established processes |
| Indonesian Banks | J-Trust Bank (Japan) | Long loan terms, competitive rates |
| International Banks | LHV Bank (Estonia) | Foreign collateral accepted, lower rates |
| Alternative Lenders | Private Fintech Companies | Higher rates, flexible collateral requirements |
| Developer Financing | Major Property Developers | In-house financing, payment plans available |
| International Banks | HSBC Indonesia | Premium banking clients, high minimum requirements |
Do you have to be a resident to qualify, or can non-residents apply too?
You generally must be a legal resident of Indonesia to qualify for a mortgage from Indonesian banks.
Nearly all Indonesian banks require applicants to hold either a KITAS (Temporary Stay Permit) or KITAP (Permanent Stay Permit) to demonstrate legal residency status. Non-residents face extremely limited options and are rarely approved by local banks due to regulatory restrictions and risk management policies.
The few exceptions involve international banks that offer cross-border financing solutions. LHV Bank, for example, allows Estonian citizens to use property in Estonia as collateral for purchasing property in Bali, effectively bypassing local residency requirements.
Some private lenders and fintech companies may consider non-resident applications, but typically at significantly higher interest rates and with more stringent collateral requirements. These arrangements often involve complex legal structures and higher associated costs.
As we reach mid-2025, the trend shows Indonesian banks becoming slightly more flexible with residency requirements, but the fundamental requirement for legal status remains unchanged.
What kind of visa is considered acceptable to qualify as a resident for mortgage purposes?
Indonesian banks primarily accept KITAS and KITAP as valid residency documentation for mortgage applications.
KITAS (Kartu Izin Tinggal Terbatas) or Temporary Stay Permit is the minimum requirement accepted by most lenders. This includes various KITAS categories such as investment visas, work permits, retirement visas, and spouse visas. Banks typically require the KITAS to have at least 12 months remaining validity at the time of application.
KITAP (Kartu Izin Tinggal Tetap) or Permanent Stay Permit holders are strongly favored by lenders as they demonstrate long-term commitment to Indonesia. KITAP holders often receive better interest rates and more favorable loan terms compared to KITAS holders.
Tourist visas, visa-on-arrival, and B211/B212 visit visas are not acceptable for mortgage applications. Some banks may consider applications from holders of diplomatic or official visas, but this varies by institution and typically requires additional documentation.
It's something we develop in our Indonesia property pack.
Does being married to an Indonesian national make a difference in your eligibility or terms?
Marriage to an Indonesian citizen does not automatically grant mortgage eligibility, but it can provide alternative pathways for property acquisition.
Being married to an Indonesian national does not directly improve your personal mortgage eligibility or terms as a foreigner. You still need to meet the same residency, income, and documentation requirements as other foreign applicants. Banks evaluate your individual financial profile regardless of your spouse's nationality.
However, marriage to an Indonesian opens up the possibility of your spouse owning property under Hak Milik (freehold) rights, provided you have a prenuptial or postnuptial agreement that legally separates assets. In this arrangement, your Indonesian spouse can apply for the mortgage and own the property, potentially accessing better terms available to Indonesian citizens.
This approach requires careful legal structuring to protect both parties' interests. The property will be legally owned by your spouse, not you, which carries both benefits and risks that should be thoroughly discussed with an Indonesian property lawyer.
Some banks may view marriage to an Indonesian citizen as a positive factor indicating long-term commitment to the country, but this is not a formal advantage in their assessment criteria.
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What are the typical down payment requirements in USD or percentage?
Down payment requirements for foreigners in Bali typically range from 30% to 50% of the property's total value.
Indonesian banks generally require foreigners to make down payments of 30-50% of the property's appraised value. For a $200,000 property, this translates to $60,000-$100,000 upfront. This is significantly higher than the 10-20% down payments often available to Indonesian citizens.
International lenders like LHV Bank may offer up to 70% loan-to-value ratios when secured by property in your home country, effectively requiring a 30% down payment. However, this still involves using substantial foreign assets as collateral.
Some premium lenders targeting high-net-worth individuals may accept lower down payments of 25-30%, but these typically come with higher interest rates and additional fees. The exact percentage often depends on your credit profile, income stability, and the specific property location within Bali.
Private lenders and developer financing arrangements may offer more flexible down payment structures, sometimes accepting as little as 20-25%, but usually at higher overall costs and with stricter repayment terms.
What are the current mortgage interest rates in Bali for foreigners?
As of June 2025, mortgage interest rates for foreigners in Bali vary significantly between local and international lenders.
Indonesian banks typically charge foreigners annual interest rates between 8% and 12%, which is considerably higher than rates offered to Indonesian citizens. Permata Syariah Bank and J-Trust Bank currently offer rates in the 8.5-10.5% range for well-qualified foreign residents with KITAP status.
International banks provide more competitive options, with LHV Bank offering rates starting from 2.99% plus Euribor for individual purchases, and 3.9% plus Euribor for company purchases through PT PMA structures. These rates are significantly lower but require substantial foreign collateral.
Commonwealth Bank Australia's Indonesian branch typically charges 7-9% for foreign residents, positioning itself between local Indonesian banks and European lenders. Private lenders and fintech companies often charge 12-18% annually, reflecting higher risk premiums.
Interest rate negotiations are possible for large loan amounts or borrowers with excellent credit profiles. Banks may offer discounts of 0.5-1% for customers who maintain substantial deposits or use additional banking services.
What are the standard loan terms (duration, repayment type, flexibility)?
Standard mortgage terms for foreigners in Bali typically range from 10 to 30 years, with most banks offering annuity-style repayment structures.
| Loan Aspect | Indonesian Banks | International Banks |
|---|---|---|
| Maximum Duration | 15-25 years (typical) | Up to 30 years |
| Repayment Type | Fixed monthly (annuity) | Fixed or floating options |
| Early Repayment | Penalties typically apply | More flexible terms |
| Payment Frequency | Monthly installments | Monthly or quarterly |
| Grace Periods | Limited options | Sometimes available |
| Rate Changes | Fixed for 1-3 years | Various options available |
| Refinancing Options | Possible but limited | More flexible |
Can you use collateral (like another property) to improve your chances or reduce rates?
Using additional collateral, including other properties, can significantly improve your mortgage approval chances and potentially secure better interest rates.
Indonesian banks typically require the Bali property itself as primary collateral, but additional assets can strengthen your application. Banks may accept other Indonesian properties, fixed deposits, or investment portfolios as supplementary collateral, potentially reducing interest rates by 0.5-1.5%.
International banks like LHV Bank specialize in accepting foreign property as collateral, allowing you to leverage assets in your home country to purchase Bali real estate. This approach often provides access to significantly lower interest rates compared to local Indonesian banks.
Some banks accept luxury assets such as yachts, high-value vehicles, or investment accounts as additional security. The more collateral you provide, the lower the perceived risk, which can translate to better loan terms and faster approval processes.
Cross-collateralization arrangements are becoming more common, where multiple properties across different countries secure a single mortgage facility. This approach is particularly useful for high-net-worth individuals with international property portfolios.
It's something we develop in our Indonesia property pack.
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 are the step-by-step procedures to apply for a mortgage as a foreigner?
The mortgage application process for foreigners in Bali involves several distinct stages that typically take 4-8 weeks to complete.
1. **Initial Eligibility Assessment**: Verify your residency status, income requirements, and preliminary creditworthiness with your chosen lender. Most banks offer pre-qualification services that take 3-5 business days.2. **Bank Selection and Comparison**: Compare offers from multiple Indonesian and international banks, focusing on interest rates, down payment requirements, and loan terms that match your financial situation.3. **Document Preparation**: Gather all required documentation including passport, KITAS/KITAP, income statements, bank records, and property details. This stage often takes 1-2 weeks due to document translation and notarization requirements.4. **Formal Application Submission**: Submit your complete application package along with application fees, which typically range from $100-500 depending on the lender.5. **Property Appraisal Process**: The bank arranges an independent property appraisal to determine current market value, which takes 5-10 business days and costs approximately $200-400.6. **Credit and Financial Analysis**: Banks conduct thorough background checks, verify income sources, and assess your overall financial profile. This process typically takes 2-3 weeks.7. **Loan Approval and Offer**: If approved, you receive a formal loan offer letter detailing all terms, conditions, and repayment schedules.8. **Legal Documentation**: Sign the mortgage agreement in front of a notary, complete property transfer procedures, and fulfill any additional legal requirements.9. **Fund Disbursement**: After all conditions are met, the bank releases funds directly to the property seller or developer, completing the transaction.10. **Repayment Setup**: Establish automatic payment systems and begin your regular monthly mortgage payments according to the agreed schedule.Which documents are required to apply for a mortgage in Bali?
Mortgage applications for foreigners require extensive documentation to verify identity, residency, income, and financial stability.
**Essential Identity and Residency Documents:**- Valid passport with at least 18 months remaining validity- KITAS or KITAP (Indonesian residency permit)- Indonesian tax number (NPWP) issued by local tax authorities- Proof of Indonesian address (utility bills, rental agreements, or property ownership documents)- Marriage certificate if applicable, translated and notarized in Indonesian**Financial and Income Documentation:**- Employment contract or business registration documents for self-employed applicants- Salary statements or business financial records for the past 6-12 months- Bank statements from both Indonesian and foreign accounts covering 3-6 months- Credit reports from your home country if available- Investment portfolio statements or other asset documentation**Property-Related Documents:**- Property purchase agreement or reservation letter- Property title documents and legal ownership verification- Property appraisal report commissioned by the bank- Building permits and compliance certificates for the specific property- Property insurance policies or proof of insurability**Additional Collateral Documentation:**- Title deeds for any additional properties offered as collateral- Investment account statements if using financial assets as security- Foreign property valuations if using international real estate as collateralAll foreign documents must be translated into Indonesian by certified translators and notarized by Indonesian authorities, which adds 1-2 weeks to the application timeline.
If you can't get a mortgage, what are the most common and realistic alternatives?
Several viable alternatives exist for foreigners who cannot secure traditional mortgages in Bali.
**Cash Purchase Arrangements:**Most foreigners ultimately choose cash purchases due to mortgage difficulties. This approach provides immediate ownership, stronger negotiating power with sellers, and eliminates interest payments and banking fees. Many buyers liquidate investments or properties in their home countries to fund Bali purchases outright.**Long-Term Leasehold Agreements:**Leasehold arrangements offer 25-30 year property rights without full ownership, requiring significantly less upfront capital. These agreements often include renewal options and can be structured with payment plans over 2-5 years, making them accessible to buyers without substantial immediate funds.**PT PMA Company Structure:**Establishing a foreign-owned company (PT PMA) allows acquisition of property under Hak Guna Bangunan (Right to Build) rights, which can then be mortgaged more easily. This structure requires higher initial investment but provides more financing options and potential tax advantages.**Developer Financing Programs:**Many established Bali developers offer in-house financing with payment plans spanning 12-36 months. While interest rates are typically higher than bank mortgages (10-15% annually), approval processes are faster and requirements less stringent.**Private Lending Networks:**Private investors and lending groups offer alternative financing, though at premium rates typically ranging from 12-20% annually. These arrangements often provide more flexibility in terms and faster approval, but require careful legal structuring to protect borrower interests.It's something we develop in our Indonesia property pack.
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.
Getting a mortgage as a foreigner in Bali requires careful planning, proper documentation, and realistic expectations about terms and requirements.
While the process has become more accessible in recent years, success depends heavily on having legal residency status, substantial down payments, and thorough preparation of required documentation.
Sources
- Bali Exception - Financing Options for Foreigners
- Rumah123 - Foreigner Mortgage Guide Indonesia
- World Estate - Mortgage for Buying Real Estate in Bali 2025
- Invest Land Bali - LHV Home Loan Options
- Global Gains - Complete 2025 Financing Guide
- Nour Estates - Foreigner Loan Options Indonesia
- Lets Move Indonesia - Mortgage Application Steps
- Lets Move Group - Indonesian Mortgage Requirements