Determinants of Home Mortgage Decisions: The Role of Interest Rates, Service Quality, and Ease of Requirements at Bank Bjb’s Cibinong Branch

Abstract

The decision to take out a home loan (KPR) is a long-term financial decision influenced not only by cost considerations but also by service quality and the ease of the application process. This study aims to analyze the influence of perceptions of interest rates, service quality, and ease of requirements on the decision to take out a home loan at Bank bjb’s Cibinong Branch. The study employs a quantitative approach with a cross-sectional survey design. Primary data were collected through a Likert-scale questionnaire administered to 140 respondents who are mortgage customers at Bank bjb’s Cibinong Branch. The analysis was conducted using multiple linear regression, t-tests, F-tests, and the coefficient of determination. The results show that the perception of interest rates has a positive but insignificant effect on the decision to take out a mortgage, with a regression coefficient of 0.139 and a significance level of 0.070. Service quality has a positive and significant effect, with a regression coefficient of 0.447 and a significance level of <0.001. Ease of eligibility requirements had a positive but insignificant effect, with a regression coefficient of 0.134 and a p-value of 0.082. Collectively, all three variables had a significant effect on the decision to take out a mortgage, with F = 29.137 and a p-value < 0.001. The adjusted R-squared value of 0.378 indicates that the model explains 37.8% of the variation in mortgage decision-making. Service quality is the most dominant variable with a standardized beta of 0.442. The research findings confirm that service quality is a strategic factor in strengthening customers’ decisions to take out a mortgage