Take Over Home Loans

How to take over home loans or take over mortgages? What are the conditions and how to take care of it? Residence is a primary need that can also be used as an asset because the price tends to be stable and rising. But with the price getting higher, many are looking for alternative ways to obtain it, one of the solutions is Home Ownership Credit (KPR). Do you know what is take over home loans or take over mortgages and what are the conditions and ways to take care of them?

What is Take Over?

Home Ownership Loans are now a very popular alternative solution in obtaining a dream home. In the use of mortgages, there is an option of buying a house whose mortgage is taken over by the previous owner. What exactly is take over?

Take over the mortgage is an act of transferring KPR of a property to another party that is done legally based on an agreement that applies under certain legal rules. Some of the reasons for taking over this mortgage include:

  1. Get lighter interest rates
  2. Buy a bigger house ( upgrade )
  3. Urgent financial needs for other needs

Types of taking Over Home Loans

Types of taking Over Home Loans

As explained earlier, the process of taking over home loans can be done to other parties, it could be to other people or the bank. Some common take-overs and practices are as follows:

1 Take Over Bank

The following take- over occurs between banks and usually occurs due to lower interest rates offered by other banks so that someone is interested in applying for a new mortgage and diverting the old mortgage to the bank.

The requirements for submitting take over are actually similar to the terms and conditions for applying for a new mortgage, but one of the additional requirements is a house certificate that will be taken over so that a new take over process can be carried out if you as the buyer has the house certificate.

Usually, the house certificate is only issued about a year after the process so in other words the take-over process can generally only be done a year after the old takes place.

2 Take Over Selling

Many people sell homes that are still in the mortgage process for a number of reasons, such as finding better homes or urgent funding needs so they are forced to sell houses. You can buy a house with a mortgage still in progress where the parties involved are:

  • Take over applicant
  • Home sellers in KPR status are still ongoing
  • The bank as the provider of funds
  • The notary who manages all credit transfer documents

The procedure for submitting take over selling is similar to applying for mortgages in general, but you must be present at the bank together with the seller of the house and pay a number of take-over fees agreed on by both parties (you as a take-over applicant and house seller). Checking and appraisal will be done as usual, and if your application is approved, the bank will issue a Sale and Purchase Deed.

3 Take Over Under the Hand

Take over actual handed down similar to take over the sale, but the differences lie are no banks involved in this transaction, so that the parties involved are

  • Take over applicant
  • Home sellers in mortgage status are still ongoing
  • The notary who manages all credit transfer documents

But this type of take over is very risky and is not recommended for you as a take over the applicant. Why is that? This is because the bank which is the provider of mortgage funds will not submit ownership certificates to you whose names are not listed in the certificate.

The transfer process is generally only done in front of the notary. The potential problem that will occur is that after you pay off all  and intend to take a certificate to the bank, chances are that the bank will not give it easily so there will be costs that you need to bear to cover this loss.

Profit and Loss Take over Home Loans

Home Loans

In general, the transfer of inter-bank mortgages tends to be safe and easier because it does not link the other parties, so here it will only be discussed the profit and loss of transfer of home loans or take-over which includes home buyers who are still on KPR ie take-over and down- take Hand.

Procedure Over Credit via Bank

Credit money

The procedure for over credit via a bank is indeed more complicated and difficult than taking over under the hand, but what is clearly safer and your position as a buyer will be stronger in the eyes of the law. The procedure for over crediting is as follows:

1 Reporting Process to the Bank

The buyer should invite the seller to jointly meet the bank issuing the home mortgage loan related to notify the plan of the credit transfer transaction.

2 Examination Process

The bank will then conduct an inspection process against the buyer to find out whether the buyer is eligible or not to obtain the power of attorney. Examinations carried out are similar to examinations on new mortgage applications, such as checking credit history and buyer’s routine income.

3 Approval Process

After the checking process runs smoothly, the bank will approve the new debtor and validate it. Thus, there will be a process of reversing the name in the certificate and the name of the debtor who repays the installments so that the seller has no right whatsoever to the housing loan.

After you have been approved to become a new debtor, you will be treated like a new applicant, so that basic mortgage fees will arise such as notary fees and fees.

Best Time Decide Take Over Home Loans

Best Time Decide Take Over Home Loans

Take over houses are usually carried out on the basis of several reasons, namely the offer of lower and attractive interest rates or if there is an urgent need for funds so that the KPR cannot continue until if it finds another home so decides to sell the house.

But is it wise if you decide to take over at the wrong time? In fact, there are several considerations that you need to think about before deciding to take over .

Some considerations that you can use in taking over include:

  1. The difference between mortgages in one bank and another bank is the amount of interest offered. But the thing that is even more important is not the interest rate, but the type of interest charged. In general, the type of interest offered by the bank is flat and floating with an effective interest rate or annuity calculation. You can compare the market interest rates ( BI rate ) and market conditions so that it is wiser to choose flat or floating interest rates.
  2. Banks are usually lazy to reduce interest rates even if the BI rate is declining, so you can consider diverting credit to other banks that offer lower interest rates at that time.