Jakarta (ANTARA) – State-owned Bank Tabungan Negara (BTN) says banks can offer Housing Financing Liquidity Facility (FLPP) mortgages for up to 40 years because the government provides most funding.BTN Director Hirwandi Gafar said the funding structure allows banks to extend long-term financing to low-income households.“Banks are certainly capable of providing FLPP financing because most funding comes from the government through housing financing facilities,” Gafar said on Tuesday.He said the financing is relatively safe for banks as long as the government places funds for the duration of the loans.“Regardless of the loan term, as long as the government places funds with banks throughout that period, the financing is relatively safe,” he said.However, Gafar said 40-year mortgages must consider land legality, including the validity of land rights underlying home ownership.He cited Building Use Rights (SHGB), which are valid for up to 30 years and can be extended for 20 years and renewed under applicable regulations.For apartments and other vertical housing, ownership also depends on the status and duration of Management Rights (HPL) and SHGB covering the land.“The issue concerns certificate validity. SHGB is valid for up to 30 years, although it can be extended by 20 years,” he said.The issue would not arise if a house already had a Certificate of Ownership (SHM), he added.From a consumer perspective, longer mortgage terms would lower monthly installments but increase total interest payments over the life of the loan, Gafar said.“Consumers will pay more interest. The longer the loan term, the more interest they will have to pay,” he said.