Bank is one of the financial institutions which have an important role in the management of funds to the community in the form of credit. One form of service credits granted by banks are lending home ownership. This study aims to determine the system for granting loans which is applied by PT. Bank Jatim (Persero) Tbk Branch Malang in anticipating loan arrears. The type of research that used in this research is descriptive research with qualitative approach. The research techniques used are interview and documentation.The results of the study explained that the implementation of system for granting mortgage in PT. Bank Jatim (Persero) Tbk Branch Malang still not effective, this is evidenced by the number of problem loans or non-performing loans are increasing every year.The weakness that makes ineffective are that a number of tasks performed by the accounts section officer at the current stage of the credit analysis and on the spot, the interviews were conducted one time, and the absence of form Instruction Credit Disbursement) as notice to withdraw funds approved credit and signed by the Branch Manager.