Home ownership

Home ownership

Home ownership or credit referred to also by KPR is a product of home financing, which is often done by the community at large. The product was developed by the financing Bank Sharia KPR, called Sharia. Which aims to finance the needs of the customer in terms of procurement-home (consumer), both new and secondhand. The financing of home ownership is done to meet part or all of the needs for shelter. KPR in Islamic banks using the principle of buying and selling (Murabahah). Which payment in installments with a predetermined number of installments in advance and paid each month. The sell of price usually is coupled with an agreed profit margin between Islamic banks and buyers.

The scholars fatwa have agreed that home purchase through bank financing (debt Covenant) it is haram. Because the agreement is considered as a flowering loans clearly contain riba.The transaction is clearly detrimental to the buyer in due installment payment each month depending on fluctuations in interest rates. The concept of home loan is still widely applied in conventional banks in Indonesia.

Settlements used on Sharia Bank are :

a.       Sharia with mortgage calneh murabahah is sale-purchase agreement between banks and customers where a bank bought a house needed customers and then selling it to customers by the purchase price was to add profit margins approved by banks and customers.

b.      calneh musyarakah mutanaqishoh. Calneh is which customers contribute capital prosentase with certain, and customer bought “ stock electronic “ which belong bank gradually, possession until the house entirely within the hand of customers.

The main differences between a conventional mortgage with Sharia – is located at. On a conventional bank, mortgage contracts are based on the specific nature of interest rates can be volatile, while Islamic mortgage could do with a few options alternative contract in accordance with customer needs.

In Islamic financing concept emphasized that the bank can not ensure profits as well as conventional bank deposit interest income that determines the interest rate in advance. Banks also can't bear the risk on one party (debtor) only but the owner of the funds (the lender) also bear the risk (loss sharing). Thus the concept of Islamic financing does not justify the existence of the hands-off response to risks that occurred.

KPR sharia financing as with financing on Sharia banking products other that where there is a written contract agreement is an agreement between the parties regarding the desired financing products including the nominal amount in it also, borrowing requirements, the time of payment and method of payment in the financing.