JAKARTA. The government is planning to change the interest subsidy scheme on Housing Finance Liquidity Facility (FLPP) or the government-backed mortgage in 2017. In 2016, the government’s portion of the financing program reached 90%. The number will be reduced in this year so that the portion of bank’s contribution will increase. As the consequence, the interest rate will also increase. Director General of Housing Finance at the Ministry of Public Works and People Housing Maurin Sitorus said, the changes in the financing scheme aims at increasing the financing funds. Therefore, more houses will be built. As information, in 2016, the government covered 90% of the financing for cheap housing program. This has reduced the interest rate from 12% to 5%.
Subsidized House interest rate may rise
JAKARTA. The government is planning to change the interest subsidy scheme on Housing Finance Liquidity Facility (FLPP) or the government-backed mortgage in 2017. In 2016, the government’s portion of the financing program reached 90%. The number will be reduced in this year so that the portion of bank’s contribution will increase. As the consequence, the interest rate will also increase. Director General of Housing Finance at the Ministry of Public Works and People Housing Maurin Sitorus said, the changes in the financing scheme aims at increasing the financing funds. Therefore, more houses will be built. As information, in 2016, the government covered 90% of the financing for cheap housing program. This has reduced the interest rate from 12% to 5%.