3 bedroom villa fully furnished for yearly rent in Umalas
Umalas · 3 bedrooms
Rp 45.000.000/ mo
Buying
Can Foreigners Get a Mortgage in Bali? Bank Loans vs Cash
Local bank financing exists for foreigners in Bali, but strict eligibility means most buyers still pay cash.
Published 23 September 2026 · Updated 13 October 2026 · Rules checked 13 October 2026 · 5 min read
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Why most buyers still pay cash
Local bank financing for foreigners exists on paper more than it exists in practice. A product called the Indonesian Property Loan is offered by some Indonesian banks to foreign residents, but the eligibility list rules out most people browsing Bali listings from abroad: a valid KITAS or KITAP, so a residence permit rather than a tourist visa, documented local income, and a down payment that is commonly 40% or higher. For a buyer without Indonesian residency or income, financing is effectively unavailable, which is the practical reason cash remains the default way to buy in Bali.
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The Permata KPR iB IMBT WNA product
In June 2025, Permata Bank launched what is reported as Indonesia's first mortgage product built specifically for expatriates: Permata KPR iB IMBT WNA. It targets foreign passport holders who hold a KITAS or KITAP, and it is structured under Islamic finance — the bank buys the property and sells it back to the borrower at an agreed mark-up, rather than charging interest in the conventional sense — a common structure in Indonesian banking, not a religious requirement for the borrower.
- Minimum property value reported at IDR 2 billion.
- Maximum loan-to-value reported at 60%, meaning a deposit of at least 40%.
- Aimed at KITAS/KITAP holders with documented individual income; specific interest or profit-rate terms were not confirmed directly from Permata Bank and should be requested from the bank before you plan around them.
The price floor that applies regardless of financing
Financing aside, foreign buyers face a separate constraint: a government-set minimum property value for foreign ownership. In Bali it is IDR 5 billion for a house and IDR 2 billion for an apartment or condominium unit, set by ATR/BPN Ministerial Decree 1241/SK-HK.02/IX/2022 under PP 18/2021; the decree can be replaced, so confirm the current figure with the notary. A villa priced below that floor is not something a foreigner can hold through Hak Pakai at all, mortgage or cash makes no difference. Confirm the current figure for your specific area and property type with a notary, since minimum values are set with some regional variation and are the kind of number that changes by government decree.
Financing vs cash, side by side
| Route | Who qualifies | Typical requirement |
|---|---|---|
| Cash purchase | Any foreign buyer with funds and a lawful ownership structure | Full amount at completion |
| Indonesian Property Loan (general) | KITAS/KITAP holders with local income | 40%+ down payment reported, local income proof |
| Permata KPR iB IMBT WNA | Foreign passport holders with KITAS/KITAP | Property value ≥ IDR 2bn reported; ≤60% LTV reported |
What to check before you assume financing is an option
- Do you hold a KITAS or KITAP? Every financing product found in this research required one; a tourist visa does not qualify.
- Can you document income inside Indonesia, or will the bank accept foreign income evidence? This varies by bank and was not consistent across sources.
- Is the property priced above the foreign-ownership minimum for its type and area?
- Ask the bank directly for current rates and terms — figures in this article are as described by the bank's own 2025 launch coverage and by property-finance intermediaries, not confirmed from Permata's own published rate sheet.
Common questions
Can foreigners get a mortgage in Bali?
In principle, yes, through products aimed at KITAS/KITAP holders such as Permata Bank's KPR iB IMBT WNA, launched June 2025. In practice, strict eligibility — residency, local income proof, deposits of 40% or more — means most foreign buyers still pay cash.
What is the Indonesian Property Loan?
A general category of financing some Indonesian banks offer to foreign residents, requiring a KITAS or KITAP, documented local income, and a substantial down payment.
Is there a minimum villa price for foreigners to buy in Bali?
Yes: in Bali, IDR 5 billion for a house and IDR 2 billion for an apartment, under ATR/BPN Ministerial Decree 1241/SK-HK.02/IX/2022, issued under PP 18/2021. Confirm the current figure with a notary, as thresholds are set by government decree and can change.
Do I need a KITAS to get a mortgage in Bali?
Every financing product found in this research required a KITAS or KITAP. A tourist visa is not sufficient for local bank financing.
Is it better to pay cash for a Bali villa?
For most foreign buyers it is the only realistic option today, given how few can meet local financing eligibility — but that also puts negotiating leverage on your side, since financed offers are rare.
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General information, not financial advice. Rates, loan-to-value ratios and eligibility change; confirm current terms directly with the lender before relying on them.