Guide · from Ask Dalam market data
Can foreigners get a mortgage for Bali property? (2026)
Short answer. Sometimes, and rarely for a villa. Indonesian law lets a foreigner's registered Hak Pakai home be mortgaged, but only a few banks lend to foreigners, mostly on apartments or ready units at around 60% of the price. A leasehold can't carry a mortgage, and 80% of villas for sale are leasehold, so most foreign buyers pay cash.
Published Updated Data: Ask Dalam market data for 11 areas, checked 2 October 2026; rules checked 30 September 2026By Maya Santoso
What a bank can take as security
An Indonesian mortgage is a Hak Tanggungan: a charge registered on a land right. So the question isn't really who you are. It's what you'd own.
| What you'd hold | Can it carry a Hak Tanggungan? | Why | Rule |
|---|---|---|---|
| Leasehold (Hak Sewa) | No | A lease is a private contract, not a registered land right | UU 4/1996 Art. 4(2); UUPA Art. 44 to 45; KUHPerdata Art. 1548 ff. |
| Hak Pakai (right of use), registered, transferable and with a term | Yes, by law | The law lists it as a right that can be mortgaged | UU 4/1996 Art. 4(2); PP 18/2021 Art. 60 |
| HGB held by a PT PMA | Yes, by law | HGB can be mortgaged | PP 18/2021 Art. 45(1) |
| Hak Milik (freehold) | Not available to a foreigner | Only Indonesian citizens can hold it | UUPA Art. 21 |
No rule from the financial regulator (OJK) bars banks from lending to foreigners who hold a KITAS or KITAP. Bank Indonesia's loan-to-value rules apply to every borrower. What stops most loans is bank policy, not the law. The mortgage deed itself (APHT) is made by a PPAT (PP 37/1998 jo. PP 24/2016).
Why most Bali villas can't be financed
Most villas for sale are leasehold, and a lease can't carry the charge a bank needs.
| Area | Leasehold listings | Freehold listings | Share leasehold |
|---|---|---|---|
| Canggu | 2,293 | 379 | 86% |
| Uluwatu | 1,455 | 484 | 75% |
| Ubud | 480 | 94 | 84% |
| Tabanan | 335 | 143 | 70% |
| Pererenan | 258 | 65 | 80% |
| Seminyak | 245 | 61 | 80% |
| Sanur | 147 | 28 | 84% |
| Nusa Dua | 80 | 69 | 54% |
| Seseh | 70 | 7 | 91% |
| Kuta | 43 | 13 | 77% |
| Denpasar | 26 | 20 | 57% |
| All 11 areas | 5,432 | 1,363 | 80% |
The freehold column doesn't mean a foreigner can finance those villas either. A freehold listing is land on Hak Milik held by an Indonesian. A foreigner would need a Hak Pakai granted over it, registered in their name, before any bank could take it as security.
What lenders actually offer foreigners
The few loans on offer ask for a KITAS or KITAP, a tax number (NPWP) and local income, and they mostly cover apartments or units from selected developers.
One published example: in June 2025 Permata Bank Syariah launched a home-financing product for foreigners ("KPR iB IMBT WNA"). As reported, it covers property of at least IDR 2 billion, finances up to 60% of the price, runs for at most 10 years, and applies to ready units at selected developers (Kontan, 2025). We name it because it's the one product with published terms in our sources, not as a recommendation, and terms change.
Compare that with the rules for a foreigner's home in Bali. Hak Pakai on a house needs a price of at least IDR 5 billion, on a plot of at most 2,000 m² (Kepmen ATR/BPN 1241/2022). Apartments need at least IDR 2 billion.
Worked example: the cash a 60% loan still leaves
Take the median 2-bedroom villa listed freehold in Canggu: IDR 5.1B across 94 listings. It clears the IDR 5 billion Hak Pakai minimum. Suppose a bank financed 60%, the most in the one product above. The sums use the median as shown, IDR 5,100,000,000.
| Item | Arithmetic | Amount |
|---|---|---|
| Loan at 60% | 60% × 5,100,000,000 | IDR 3,060,000,000 |
| Your share of the price | 40% × 5,100,000,000 | IDR 2,040,000,000 |
| BPHTB (buyer's acquisition tax, Badung) | 5% × (5,100,000,000 − 80,000,000) | IDR 251,000,000 |
| PPAT fee, legal maximum | 1% × 5,100,000,000 | up to IDR 51,000,000 |
| Cash before the bank pays anything | about IDR 2.34 billion |
That's before interest, bank fees, insurance, or the mortgage deed costs, which we don't have sourced figures for. BPHTB is 5% of the price or the official land value, whichever is higher, minus Badung's IDR 80 million allowance (Badung Perda 7/2023 Art. 12, 13).
What the numbers don't tell you
- A legal right to borrow isn't a loan offer. The law allows a mortgage on Hak Pakai. Whether any bank will lend on a particular villa, and on what terms, is up to the bank.
- "Freehold" in a listing isn't a title you can hold. The freehold counts above are villas on Indonesian Hak Milik. A foreigner's route to a mortgageable title is a registered Hak Pakai, which the seller has to grant through a PPAT deed.
- The shares count listings, not sales. A leasehold share of 80% says what's on offer, not what foreigners end up buying.
FAQ
Can foreigners get a mortgage in Bali?
Indonesian law allows a foreigner's registered Hak Pakai home to be mortgaged (UU 4/1996 Art. 4(2); PP 18/2021 Art. 60). In practice only a few banks lend to KITAS or KITAP holders, mostly on apartments or ready units, at around 60% of the price and for short terms. Most foreign buyers pay cash or use developer instalments.
Can I get a mortgage on a leasehold villa in Bali?
Not from an Indonesian bank against the villa. A lease is a private contract, not a registered land right, so it can't carry a Hak Tanggungan. That covers 80% of villas for sale across the 11 areas we track. If you pay a developer in instalments, the contract is your only protection; see the off-plan guide.
Can I get a tax number (NPWP) in Indonesia without a KITAS?
Yes. Since PER-7/PJ/2025, a non-resident individual can register for an NPWP with a passport and photos. Banks that lend to foreigners still ask for a KITAS or KITAP and local income, and those are the bank's own conditions.
General information, not legal, tax or financial advice. Checked 30 September 2026. Confirm with a licensed notary (PPAT) and with the bank before you sign or pay.
How we measured
- Listing counts: the live market data page for each of the 11 areas: villas and houses for sale that state a tenure, one entry per property, from property platforms, agency sites, and Facebook and Telegram groups. Shares are leasehold ÷ (leasehold + freehold). Rooms, guesthouses and land are left out.
- Price: the Canggu 2-bedroom freehold median, 94 listings. Asking price, not agreed price. The worked example is plain arithmetic on it and refreshes with it.
- Lending facts: the law cited below, and one product described in a national newspaper report. We haven't checked current terms with any bank.
- UU 4/1996 (Hak Tanggungan), Art. 4(2).
- PP 18/2021, Art. 45(1) (HGB can be mortgaged), Art. 60 (Hak Pakai can be mortgaged), Art. 69 to 73 (homes for foreigners). jdih.surabaya.go.id
- UUPA 5/1960 Art. 21, 44 to 45; KUHPerdata Art. 1548 ff. (leases).
- Kepmen ATR/BPN 1241/SK-HK.02/IX/2022 (minimum prices and plot size for foreigners).
- PP 37/1998 jo. PP 24/2016 (PPAT deeds and fee cap).
- Perda Kabupaten Badung 7/2023, Art. 12, 13 (BPHTB). bapenda.badungkab.go.id
- PER-7/PJ/2025 (NPWP registration for non-residents). jdih.kemenkeu.go.id
- Kontan, "Bank Permata kepicut penyaluran KPR untuk WNA" (2025). keuangan.kontan.co.id
- Ask Dalam: market data for each area above and Canggu freehold villas for sale.