Australians cannot get a mortgage in Indonesia
No local lending for foreign buyers on leasehold. It changes who the buyer is, and it changes what a payment schedule has to do.
There is no mortgage market for an Australian buying a leasehold villa in Bali. Indonesian banks lend against Indonesian title held by Indonesian borrowers, and a foreign national on a lease sits outside that. Australian lenders do not take foreign leasehold as security either.
So the purchase is cash. That single fact reshapes everything around it.
What it changes
Who the buyer is. Not a first investment. In practice the buyers are people releasing equity from an Australian property, selling a business, or moving money that is already liquid. A category marketed as entry-level is in fact an all-cash purchase.
What a payment schedule has to do. With no bank in the middle there is no valuer, no progress inspection and no third party holding anyone to a milestone. The payment schedule is the only protection the buyer has. Ours ties each instalment to a physical stage rather than a date, and the stages are ones a buyer can stand in front of and check.
Where the risk sits. In a financed purchase the bank shares the risk of the developer failing. Here the buyer carries it alone. That is the honest reason a track record matters more in Bali than in Brisbane, and the reason we publish handover dates promised against actual.
The equity release route
Most Australian buyers in this market fund the purchase against Australian property: a redraw, a line of credit, or a second mortgage on a home or investment property. Two things worth saying plainly.
The debt sits in Australia against Australian security. If the Bali villa underperforms, the loan does not care.
Deductibility of interest depends on the use of the funds and on your circumstances, and it interacts with the foreign income rules. That is a question for your accountant, not for a developer’s website. We are not licensed to give financial advice in Australia and this is not advice.
What to ask
If a seller mentions “financing available”, ask who the lender is, what security they take and what the rate is. In this market the answer is usually a developer instalment plan, which is not financing. It is a payment schedule with a longer tail. Both can be reasonable. They are not the same thing, and the difference is who carries the risk if the building stops.
Our schedule, the milestone definitions and what happens if a milestone is missed are published on the project page.
Sources, and how to check them
- Lending policy for foreign nationals on leasehold. Written confirmation requested from [bank], [date]
- Payment schedule for La Casa Espanola II, in the document register
Anything in [brackets] is a fact we have not yet published a document for. If a figure here is wrong, tell us and we will correct it and date the correction.
