Can You Get a Mortgage in Bali?
Financing property in Bali is one of the most frequently asked questions from both local and foreign investors. While Indonesia’s property laws and banking policies can be complex, there are several financing options available depending on your citizenship, residency status, and ownership structure. Common search terms like Bali property financing, mortgage options for foreigners in Bali, and buy property in Bali without cash have gained traction as demand for flexible investment structures grows.
Bank Loans and Mortgages for Indonesian Citizens
Indonesian citizens have access to traditional mortgage loans from local banks, with competitive interest rates and repayment terms up to 20 years. These loans are available for both leasehold and freehold properties, depending on land certificate status. Local buyers must meet income and credit score requirements, and properties must be legally certified. For dual nationals or expats with KITAS or KITAP, some banks may offer limited loan options under strict eligibility conditions.
Why Most Foreigners Use Alternative Financing
Foreign nationals cannot directly access local mortgage financing in Indonesia due to regulatory restrictions. As a result, most foreign investors opt for alternative methods such as developer-backed payment plans, private lending, or offshore financing through personal credit lines or home equity in their home country. In many cases, investors use a PT PMA (foreign-owned company) to structure ownership and financing, allowing them to legally operate and profit from Bali real estate while maintaining compliance.
Developer Payment Plans: A Popular Option
One of the most accessible financing solutions for foreigners is buying off-plan from a developer offering installment-based payment plans. These typically begin with a 20–30% down payment, followed by monthly or milestone-based payments until completion. This method reduces upfront capital requirements and spreads risk over the build timeline. With the growing number of new projects in areas like Canggu, Uluwatu, and Nusa Penida, developer payment plans are helping more investors enter Bali’s competitive market.
What to Consider Before You Finance
Before choosing a financing route, it’s crucial to understand the legal framework, tax implications, and ownership restrictions in Indonesia. Always verify land certificates, zoning, and construction permits, and consult with both a licensed notary and real estate advisor. While financing can offer greater flexibility, structuring the deal incorrectly could lead to ownership disputes or legal complications later. A clear, transparent financing strategy ensures your investment is both secure and profitable.
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