Buying a house will cost a whole lot amount of money, therefore mortgage loans with a long installment periods is required. For banking, the source of funds that is available for mortgage financing usually comes in short term (savings, current accounts, deposits, and some part of bonds),  thus resulting in maturity mismatch (period of gap).

Maturity mismatch serves as a problem because it has been experienced by most developing countries and each country is trying to find a compatible solution that is suitable with the condition of their country.

Since 1983 intensive discussion about the establishment of secondary mortgage institution has been conducted among housing finance industry stakeholders. It is followed by a series of feasibility study and was pioneered by the Government in this case was the Ministry of Finance, between 1993 until first semester of 2005.

Through a series of studies conducted since 1993 by a working group established by the Ministry of Finance and assisted by foreign consultants funded by USAID through the Municipal Finance Project, in 1998, the Decree of the Minister of Finance of the Republic of Indonesia No.. 132/KMK.014/1998 was issued, which opens the opportunities for establishment of secondary mortgage institution. This institution had not been established because of the absence of shareholders candidate. The Government remains committed to the establishment of this institution by forming a new working group. Finally, based on the Indonesian Government Regulation No. 5/2005, dated February 7, 2005, regarding the Government of Republic Indonesia Capital Investment for Establishment of Secondary Mortgage Corporation and the Indonesian and Presidential Decree No. 19/2005, dated February 7, 2005, regarding Secondary Mortgage, deed of Notary Imas Fatimah, SH, No. 59 which was published in the State Gazette of the Republic of Indonesia on August 30, 2005 No. 69 Supplement No. 9263, then PT Sarana Multigriya Finansial (Persero) was born on July 22, 2005. Adjustment of the Articles of Association with the Law No. 40 of 2007 on Limited Liability Companies conducted on August 13, 2008 with deed of Sutjipto, SH, No. 114 with approval of the Minister of Justice and Human Rights of the Republic of Indonesia by virtue of Decree No. dated December 5, 2008. AHU-94053.AH.01.02 in 2008 and was published in the State Gazette of the Republic of Indonesia No. dated July 3, 2009. Supplement No. 53. 17294.

On January 26, 2008, the President of the Republic of Indonesia issued Regulation No. 1/2008 regarding the Amendment of Presidential Regulation No.19/2005 on Secondary Mortgage.