Owning a dream home is something everyone aspires to. A comfortable house in a pleasant neighborhood not only brings peace but also a sense of security to its owner.

The problem, however, is that finding a house in the locations we truly want can be difficult—especially in developed, high-density areas. And even when houses are available, the prices can be extremely high. Often, personal finances alone are not enough to cover the cost, so taking out a mortgage or a loan becomes the only viable solution.

What is a Mortgage (KPR) and How Does It Work?
In Indonesia, a Kredit Pemilikan Rumah (KPR) or home ownership loan is a financing product provided by banks that covers a certain percentage of a home's value. There are 8 types of KPR available in the country, including:

Conventional KPR

Subsidized KPR

Sharia-based KPR

KPR for Home Purchase

Refinancing KPR

Take Over KPR

Step Installment KPR

KPR Duo

To apply for a mortgage, borrowers are required to submit several documents, including personal identification, proof of income, and property-related documents. While the application process may seem straightforward, it’s not always successful—many applicants still face rejection.

So, what can you do to increase your chances of getting your mortgage approved? Here are 4 powerful tips to help your KPR application succeed:

1. Make Sure Your Credit History (BI Checking) is Clean
   BI Checking is used by banks to review an applicant's financial history with other banks and financial institutions. It shows how well a person has met their financial obligations. If you’ve had issues in the past—such as missed payments or defaults—it's best to resolve them before applying for a mortgage.
2. Understand the Age Limits for Borrowers
   Banks set minimum and maximum age limits for borrowers, especially regarding how old you’ll be when the loan matures. The key point is that you must not exceed the maximum age limit at the end of the loan term. For instance, if you're 40 years old and apply for a 20-year mortgage, your application might be rejected since you'd be 60 at the end of the loan term, which is often the age cap for repayment.
3. Complete All Required Documents
   Having all required documents ready is crucial. These documents are used by banks to verify your identity, assess your creditworthiness, and evaluate your eligibility. Missing paperwork could delay or even derail your application.
4. Provide Proof of Income
   Finally, make sure you have clear proof of income. This shows the bank how you plan to repay your loan. For employees, this usually means providing payslips. For business owners or freelancers, bank statements are commonly used. Keep in mind that banks generally find it easier to verify income for salaried employees than for entrepreneurs or freelancers.

Those are four key tips to help you if your KPR application was rejected—or better yet, to ensure you get it right the first time. If you’re planning to apply for a mortgage soon, start preparing your documents and keep these tips in mind to boost your chances of approval.