Startup Proptech IDEAL Introduces Secondary Residential Mortgage Products

Startups proptech IDEAL introduces a new product, Secondary Housing Loans (KPR), which provides mortgage financing and management services for secondary housing for prospective home buyers. Secondary occupancy itself is basically a property asset that has changed hands from the first (primary) owner to another party.

Co-Founder & President of IDEAL Ian Daniel Santoso said, currently not many players have entered the secondary housing market. In addition, the average prospective buyer who has found their dream home has not yet received the best mortgage according to their financial needs. "The decision to choose traditional mortgage products is still based on influence from property agents or marketers," said Ian in his official statement.

In fact, he continued, the potential for KPR/KPA in Indonesia in general is very large. The market value of mortgage products is around $39 million, while 75% of Indonesians buy housing using the KPR/KPA method. This figure is projected to grow by around a dozen percent CAGR in the next five years.

IDEAL Co-Founder & CCO Indira Nur Shadrina added, the problem that often arises during the Secondary KPR survey is the cost appraisal. If the mortgage application is rejected and the user decides to take a mortgage at another bank, the costs incurred cannot be returned.

In fact, users want to increase their chances of getting mortgage approval by applying for more than one bank. "IDEAL is committed to reimbursing all costs appraisal when the process of buying a house and the proposed mortgage has been completed," he said.

Now, prospective home buyers can apply for mortgages to three banks at once with a fully digital process, both through the website and mobile application. The user will be prompted to do so appraisal to the destination bank where IDEAL will cover all costs (maximum to three banks) with a mechanism cashback when applying for a mortgage and the process of buying and selling houses is complete.

Meanwhile, KPR Secondary is equipped with features autosave and autofill to make it easier for users to complete data entry.

Home financing

IDEAL is debuting in mid-July 2022 with an initial focus on new or primary residential products. Its main focus is to digitize the process of financing and managing mortgages in Indonesia, unlike most in today's market which is still done online online-to-offline.

They also pocketed pre-start funding of IDR 57 billion led by AC Ventures and Alpha JWC Ventures, as well as the participation of Living Lab Ventures and Ciputra Group.

In its survey, IDEAL found that prospective home buyers have difficulty applying for mortgages because they are still done in the traditional way. This method tends to take a long time and is tiring because it involves major decisions by potential buyers. Its mission is to provide access to information that can help prospective home buyers make decisions according to their needs and financial conditions.

This is reflected in a number of features developed, for example the IDEAL Compass which presents mortgage product recommendations from seven partner banks. These mortgage product recommendations are claimed to have been personalized according to user preferences and characteristics, such as age, profession, interest, and monthly installment capabilities.

IDEAL has partnered with a number of developer and seven leading banks in Indonesia including Sinar Mas Land, Ciputra, PIK2 Group, as well as Bank Mandiri, CIMB Niaga, OCBC NISP, Danamon, Permata, Maybank and Bank Panin.

Process end-to-end digitally it has been certified ISO 27001. It ensures that data processing has minimal human intervention (view only) and only sent to partner banks by the users themselves. "We have a system audit trail and watermark which makes traces and data flows recorded in the system," said IDEAL Co-Founder & CEO Albert Raharja Surjaudaja.

For your information, marketplace buying and selling and renting property Pinhome also offers quite similar products through home installment program. The difference is, this program targets low-income and non-fixed income people so they can have their dream home.

Pinhome even presents the iVestment program which facilitates investment for housing developers. Here, developer not only get access to business capital, but also marketing support through the application. Pinhome will play a role in assisting the home selling process, from transactions to fees booking fees.