A Home Mortgage Is A Way To Own A Home – We Need To Know That The Definition Of The Word Of Home Mortgage Is A Way To Have A Home With Low Installments It Is Very Important
One of the most popular types of mortgage loans in Indonesia is Home Ownership Loans (KPR).
With a mortgage system, the home payment process can be easier to bear.
With house and land prices creeping up every year, owning a house has become a difficult thing to do in cash.
Mortgage debt instruments provide an alternative way to own the dream home.
Mortgage loans, in this case KPR, have their own advantages that ease the debtor (debtor) in financing home installments.
Payment schemes are divided into smaller amounts over a period of years, making them easier to cover.
In this article, rumah123.com will take mortgages further, to provide an explanation that can help us all understand this debt instrument better.
Meaning of mortgage
What is a mortgage?
The term mortgage itself has its roots in the Latin hypothēca and the Greek hupothḗkē.
Mortgage in the Big Indonesian Dictionary has the meaning of “credit given on the basis of collateral in the form of immovable objects.”
Collateral in the form of assets or immovable objects, for example, such as land and buildings, houses, and apartments.
Meanwhile, citing the Financial Services Authority, a mortgage is a “debt instrument with the granting of mortgage rights over the property and the borrower to the lender as collateral for his obligations; in this case the borrower can still use or utilize the property; the mortgage right on the property expires after the obligation is paid in full (mortgage).”
So from the above definition, we can easily understand that a mortgage is a long-term debt instrument in the form of a loan to buy property or land with collateral in the form of land or property itself which is handed over by the borrower (debtor) to the lender (creditor) with the object loans that can still be used by the debtor.
Borrowers can own a home by paying off the mortgage debt, i.e. the value of the house along with the interest.
If the borrower does not succeed in paying off his mortgage debt, then the object of the guarantee becomes the property of the lender (creditor).
Pawn vs mortgage
To understand the difference between a mortgage and a pawn, we need to first know the legal concept and the meaning of a pawn itself.
According to the KBBI, pawning is “borrowing money within a certain time limit by submitting goods as dependents, if it has not been redeemed, the goods become the rights of the lender.”
Meanwhile, according to the Financial Services Authority, a pledge is a “mortgage right on movable property; collateral must be released from the authority of the debtor”.
From the definition above, we can see that at a glance a pawn has similarities to a mortgage.
However, these two debt instruments are different.
Here are some of the differences between a mortgage vs a mortgage.
Mortgage
1. Mortgage debt guarantees in the form of assets or immovable objects, for example land and property, such as houses, apartments, boats
2. There must be an official written agreement made in the presence of a notary
3. The guarantee does not become the property of the debt borrower, so the borrower can m
4. use the guarantee object
5. The status of the right to guarantee is not lost even if the guarantee changes hands
6. Proven by an authentic deed
7. The practice is carried out by banking financial institutions
Pawn
1. Collateral in the form of movable assets or objects, tangible or intangible, for example jewelry and motor vehicles
2. Not obliged to involve PPAT or a notary in the agreement
3. The contents of the agreement include the rules for transferring power over the object of collateral
4. The debtor (borrower) relinquishes ownership rights to the object of collateral to the lender
5. The proof can be done by proving the main agreement
6. Rights are lost if the object of collateral changes hands
7. The practice is carried out by pawning institutions, for example Pegadaian
The main difference between a mortgage loan and a pawn is in the use of the object being mortgaged.
A mortgage is a debt instrument where the borrower can still use or utilize the property that is the object of the guarantee.
Hence, a mortgage is a good way to own a home.
During the debt payment process, the creditor (debt borrower) can still use the object of collateral, in this case occupying the house that is used as collateral.
1. Transferable immovable property and all its accessories
2. The usufructuary rights to these objects and all their equipment
3. The right of hitchhiking and the right of business
4. Land interest (whether paid in cash or payable with land proceeds)
5. Flowers as before
6. Markets recognized by the government, along with native rights, are inherent in them
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Home mortgage
The use of the mortgage system to own a house in Indonesia is known as the Home Ownership Credit (KPR) program.
KPR was originally held by the State Savings Bank (BTN) to provide a home financing program with a mortgage lending system.
The aim is to provide an alternative option for Indonesians to own a house with low installments.
Along with its development, this mortgage program became increasingly popular and other banks also provided home mortgage loans.
Mortgages are loans offered by banks to customers who want to buy property with a collateral object in the form of a certificate of the house to be purchased itself.
Thus, a mortgage is one way that can help people to own a house.