Foreign Investors Now Have Access to Mortgages in Bali

For decades, the idea of a foreigner securing a mortgage in Bali was dismissed as a fantasy. The consensus among lawyers, bankers, and property agents was simple: non-Indonesians could not access direct financing. That belief is now history. After two years of research and negotiations, I have confirmed that selected Indonesian banks are partnering with vetted and eligible developers to open credit lines for qualified international buyers. This marks a pivotal shift in the island's real estate landscape - one that could redefine Bali's position as a global investment hub.

New Rules of the Game

• Participating Banks: only several Indonesian banks have rolled out pilot programs granting loans to foreigners.
• Vetted Developers: Fewer than 1% of Bali's developers meet the strict financial and legal due diligence required. Only their projects are eligible for financing.
• Who Qualifies: Primarily foreign investors operating through a PT PMA (foreign investment company), or individuals with a long-term employment track record in Indonesia. I can help with fulfilling this requirement.
• Eligible Properties: Ready-built or under-construction projects with HGB (Hak Guna Bangunan - from Ind. "The Right to Use the Property") titles, plus certain under-construction projects by approved developers.
• Down Payments: Standard entry at 50%. PT PMAs can access reductions of 10–20%, while long-term foreign employees (with 8+ or more years of service) may secure a 20% reduction.
• Interest Rates: Promotional fixed rates of 4.25%–5.5% for 3–5 years, after which loans revert to floating rates.
• Loan Terms: 7-10 years maximum.
• Minimum Loan: IDR 500 million (≈ USD 32,000), with property values starting from IDR 1 billion (≈ USD 61,000).

Why This Matters

For foreign investors, the absence of financing options has long been a structural barrier to entering Bali's lucrative property market. Now, with banks stepping in, investors can:

• Unlock the ability to finance growth rather than tie up large amounts of liquidity.
• Ensure the property generates rental income that covers installments.
• Leverage your assets strategically in a market where rental yields often exceed 10–12%.

The Expert Playbook

As with all financial innovation in emerging markets, the devil lies in the details. Based on my experience, here's how professional investors should approach Bali's new financing pathways:

• Work Only with Approved Developers: Without bank-aligned developers, financing is impossible.
• Prioritize ROI-Backed Projects: Focus on properties with guaranteed rental income to self-fund mortgage payments.
• Limit Loan Duration: Avoid terms beyond 5 years to reduce exposure to high floating rates.
• Ensure Income Verification: Banks typically require a verifiable minimum income of USD 1,500/month for individuals, or strong financials for PT PMAs.

The Takeaway

The era of uncertainty is over. Bali has moved from a cash-only playground to a structured, finance-enabled investment market. With the right guidance, foreign investors now have a clear, actionable path to owning property with bank-backed security. This breakthrough is not a marketing gimmick—it is a verified, operational solution that connects the right banks, developers, and investors. For those who have long dreamed of owning property in Bali, the doors are finally open.

For further steps and to strategize your investment with the leading expert, book a consultation via the link on the website.