Recognize the strengths and weaknesses of Sharia KPR

Recognize the strengths and weaknesses of Sharia KPR

Owning a house or a private residence is one of everyone’s dreams today, especially as the price continues to rise. One way to own a home is to apply for a Home Ownership Loan (KPR), both conventional and sharia mortgages.

Later, many people are more interested in the sharia system compared to the conventional system because it has its advantages.

In addition, the public considers that taking credit in sharia is considered much safer because it is in accordance with the principles of sharia and the payments are more stable.

To learn more about sharia mortgages, this article will discuss the meaning, types, advantages and disadvantages. Check out the following article review.

Also read: Check the following 4 tips for your mortgage application to be approved

What is a Sharia mortgage?

Home Loans
Home Loans

In general, sharia mortgages are a banking product where the financing of home ownership is carried out in accordance with sharia principles.

Of course, this sharia system is different from conventional mortgages where one of them is that there is no interest in the sharia system.

This is even more interested in people applying for sharia loans that are considered more profitable than conventional systems.

Types of Sharia KPR

In Indonesia, the types of sharia loans that are commonly used are Murabahah and Musyarakah Mutanaqisah contracts.

Both have their own methods and also their respective advantages. You can adjust it to your needs if you want to take a sharia loan.

Check out the following differences:

Murabahah Akad Sharia Mortgage

Murabahah is an agreement system commonly used in the Islamic banking system. In this case, there is a sale and purchase agreement between the customer and the bank.

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In the Murabah contract system, the bank will buy the house that the customer needs and then sell it to the customer.

So where is the bank’s profit?

Of course, the banks take advantage of the increased price margins after buying the house from the developer.

There is a difference in value paid by the bank to the developer and also by the customer to the bank which becomes the bank’s profit.

For example, you want to buy a house worth IDR 600 million using the sharia system.

First, you will pay a 20% deposit which is equivalent to IDR 120 million to the housing developer.

Then the rest you borrow from the bank with a sharia mortgage system with a Murabaha contract.

Technically, the bank will buy the house and sell it back to you with an increased margin value according to the mutual agreement.

For example, you agreed with the bank to determine the amount of margin of 8% with a tenor of 15 years.

Thus, the calculation is:

((bank purchase price x (bank profit x tenor) + bank purchase price): tenor month

((480,000,000 x (8% x 15) + 480,000,000) : 180 months

The result is IDR 5,866,666 per month.

Therefore, you need to pay about IDR 5.8 million per month without increasing or decreasing the installments.

KPR Syariah Musyarakah Mutanaqisah

There is a significant difference in this Musyarakah Mutanaqisah contract when compared to the Murabahah contract.

In this contract scheme, the bank and the client are more focused on the cooperation of the profit, which of course has been mutually agreed.

This allows you and the bank to buy a house with different values.

As if you want to buy a house in Gardens at Candi Sawangan, the costs that must be paid for each must be adjusted first.

For example, agree that the payment scheme that will be made is 30% and 70% where you will pay 30% and the bank is 70%.

Because the bank pays more for the share at the beginning, the house will be rented to you later.

In this way, it will be as if you are renting the house from the bank.

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The rent you pay each month to the bank is the installment you have to pay.

But, of course, the amount of rent or payments you pay has been increased by the value of the bank’s margin as the bank’s profit.

Also read: 4 Types of Mortgage Interest You Should Know

Advantages of Sharia KPR

Advantages of Sharia KPR
Advantages of Sharia KPR

Recently, the growth of mortgage lovers with the sharia system has grown rapidly. Although the growth is not as much as mortgages with conventional systems.

This is because many people consider the sharia system to provide more benefits than the conventional system. Here are some of the advantages:

1. Do not use Interest

Almost all people who decide to make sharia loans consider the absence of an interest system to be the main one.

In this way, people who use this system feel safe from interest or riba which is the main benefit of the sharia system.

In addition, in the absence of interest, the customer has a clear understanding in advance of how much profit the bank will make, how many installments must be paid, and other components.

2. Lower Down Payment

When compared, the payment payment that must be paid with the sharia mortgage system is lower than that of conventional mortgages.

The sharia scheme allows customers to pay a 10% deposit where conventional mortgages only allow a minimum of 15%.

Of course, this advance payment relief is one of the attractions that makes people want to take sharia home loans.

3. No Penalties

There are many people who have paid their mortgage repayments before they are due where this will result in a penalty if done through a conventional mortgage scheme.

In general, the amount of the penalty is 1% -2% of the total remaining payments paid. Even so, the number of penalties is considered quite heavy and unfortunate.

However, if you use a sharia home loan, there will be no penalty if you complete the installment before it is due.

4. Flat payment amount

In contrast to conventional schemes, sharia mortgages provide a fixed amount of installments every month. This will not be affected by the floating interest rate according to Bank Indonesia.

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Therefore, this point is a special attraction for people who want stable payment every month.

5. Can do Financial Planning

Of course, you can use a stable monthly payment amount for future financial planning.

This is what you need to understand when taking sharia credit so that your family cash flow remains stable.

Lack of Sharia KPR

Lack of Sharia KPR
Lack of Sharia KPR

In addition to the advantages, of course, there are some disadvantages of the sharia scheme that you need to consider, as follows:

1. Short Term Tenor

Unlike conventional mortgages, mortgages with sharia schemes have shorter terms. The sharia scheme provides a maximum term of 15 years, while conventional mortgages can be up to 25 years.

Therefore, you need to consider the tenor period first when you want to take this sharia home loan.

2. No Decrease in Interest

The issue of interest is the main one that does not exist in Islamic home loans. However, it is this interest factor that does not cause a decrease in interest according to the BI rate.

In this way, you will lose the opportunity to reduce interest rates when the BI rate is lowered. So it has no effect on the amount of payments you have to pay.


Sharia mortgages are one of the best ways for those of you who want to buy a house with an Islamic scheme. In contrast to the conventional scheme, in the sharia scheme you are exempt from interest and the purchase scheme there are two types of methods that are commonly used.

In addition to this, you need to determine which mortgage you should take to get your dream residence.

Here is some information about sharia mortgages that you need to understand. If you want to find a comfortable and beautiful place to live, but still close to the city, Gardens at Candi Sawangan is the answer.

For more information, you can call (021) 7470 7959 or 0812 9360 6612 (WA) or you can also visit the official Gardens website here.