IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2021i3p48-54.html
   My bibliography  Save this article

The Factors Affecting Islamic Financing for Homeownership

Author

Listed:
  • Neva Sunba Dena

    (Sriwijaya University, Palembang, Indonesia)

  • Suhel

    (Sriwijaya University, Palembang, Indonesia)

  • Imam Asngari

    (Sriwijaya University, Palembang, Indonesia)

Abstract

Indonesia has a significant and growing shortfall of housing. Existing supply is in poor condition and demand is rising for new units. Meanwhile, people's purchasing power to buy a house is still relatively low. Government overcomes added stock housing availability by collaborating with private developers to help meet the demand for housing needs. Islamic banks can provide funds to buy houses for the community. This study analyzes the effect of third-party fund (TPF), margin of homeownership financing (PPR), inflation, and household income on Islamic financing for homeownership. The analytical model used in this research is the ordinary least square with the Error Correction Model (ECM) method. The Ordinary Least Square (OLS) method in this study is used to see the relationship between the short-term and long-term effects of the independent variables on the dependent variable. The analytical tool used in this research is Econometric Views (EViews 10 Standard Edition for Windows). The study results show that in the short term, the TPF, PPR margin, inflation, and household income variables have a significant positive effect on homeownership financing in Islamic banks in Indonesia. The long term TPF, inflation, and household income variables have a significant positive effect on homeownership financing in Islamic banks in Indonesia, but the variable of PPR margin has a significant negative impact on sharia financing for homeownership.

Suggested Citation

  • Neva Sunba Dena & Suhel & Imam Asngari, 2021. "The Factors Affecting Islamic Financing for Homeownership," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 48-54, September.
    • Handle: RePEc:iaf:journl:y:2021:i:3:p:48-54
    DOI: 10.33146/2307-9878-2021-3(93)-48-54
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/848-faktori-scho-vplivayut-na-finansuvannya-pridbannya-zhitla-za-zakonami-shariatu.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/848/
    Download Restriction: no
    File URL: https://libkey.io/10.33146/2307-9878-2021-3(93)-48-54?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bandyopadhyay, Arindam & Saha, Asish, 2009. "Factors Driving Demand and Default Risk in Residential Housing Loans: Indian Evidence," MPRA Paper 14352, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      Keywords

      homeownership financing; third-party fund (TPF); margin PPR; inflation; households income;
      All these keywords.

      JEL classification:

      • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iaf:journl:y:2021:i:3:p:48-54. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serhiy Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.