Jakarta, CNBC Indonesia – Home Ownership Credit (KPR) is certainly one solution to being able to own a house, even though we don't have enough money. However, KPR itself is a debt that can actually burden our finances in the long term.

Talking about KPR, two well-known Indonesian celebrities spoke about their experiences in this matter.

For example, the couple Bebi Romeo and Meisya Siregar recently openly said that they did not force themselves to pay off their mortgage debt at a young age and decided to continue paying in installments until the debt was paid off when they reached the age of four. This is because they prefer to use their income for business.

Meanwhile, couple Andhara Early and Bugi Ramadhana decided to pay off their mortgage when they lost their regular income as employees. This reason was stated because he no longer wanted to be burdened with this debt.

Learning from the celebrity case above, there are actually two choices you can take when you buy a house using a mortgage. Continue to pay in installments until maturity or speed up repayment, but of course there will be a penalty fee that must be paid.

Which is better? Here's the review.

It all comes back to the financial condition of the person concerned

When you choose to pay in installments until maturity in the long term without making a partial repayment in the middle of the installment period, your expenses will actually be greater because the mortgage interest burden will become heavier when you take a long term.

However, if you make partial payments every year, or pay off the debt in the middle of your mortgage, your financial burden can certainly be reduced and in addition, the amount of the penalty fee will certainly not be as big as the financial burden you would get if you paid in installments until maturity.

However, the consequences of partial or full repayment will be on the amount of your savings.

When your savings are drained in large amounts, it is not impossible that your emergency fund will also be drained. It is possible that you will experience increasingly difficulties when dealing with urgent matters.

In essence, all decisions regarding mortgage debt must be based on the capabilities and financial condition of the person concerned. When emergency funds are available and you have abundant current assets, there's no harm in paying off the mortgage debt in full.

[Gambas:Video CNBC]

(aak/aak)