Mortgage Is A Light Home Installment Solution, These Are The Conditions!
What is a mortgage?
Let’s learn the terms, terms and methods below.
Mortgage is a long-term credit instrument in the property sector that can help you realize your dream home quickly and easily. A real example of mortgage practice in everyday life is a bank mortgage service.
Even though it has many advantages, before using it, you need to measure economic capabilities so that mortgages don’t boomerang. So, in this article, we will discuss what a mortgage is, its characteristics, and all the procedures. Let’s listen!
Definition of Mortgage
Mortgage is a loan in the form of long-term credit with mortgage rights, where the borrower will provide collateral in the form of immovable objects to the lender, for example a building. However, the borrower or debtor still has the right to occupy the collateralized asset.
Later, the borrower will repay the debt and interest during the repayment period. After it is paid off, the mortgage has been completed and the mortgage rights given to the creditor fall. In everyday practice, the popular name for a mortgage is a mortgage.
Characteristics and Characteristics of Mortgage
Mortgage is one of the credit schemes for property procurement that has been regulated in the Civil Code. According to this legal basis, the characteristics of a mortgage are as follows:
- It is droit de suite or zaaksgevolg in nature, meaning that the mortgage right is always attached to the object even though it has been transferred. So, even though the debtor sells the collateral object, its status as collateral is not lost.
- It is droit de preference, meaning that debt payments for creditors holding mortgage guarantees will take precedence over other creditors.
- Ondeelbaar or cannot be divided. Thus, the mortgage guarantee can only be returned to the owner after all debts have been paid in full.
- Mortgage is a system that is Verhaalsrecht in nature, meaning that the creditor only has the right to repay the debt so that he is not entitled to own the collateral object.
- Accessoir nature, namely as an additional agreement attached to the debt agreement. When the debt is repaid, the mortgage guarantee will return to the owner.
- Mortgage is an absolute right, meaning that the collateral object will still be held by the creditor even if there is a claim on it.
- Must meet the principle of publicity, thus, need a PPAT as a third party, which will deed the agreement to the land office.
Mortgage Payable Provisions
Mortgage payable is a term for mortgage debt, namely the amount of money borrowed by the debtor. In practice, the terms of the mortgage payable are as follows.
- There are two parties who act as creditors (lenders and recipients of payments) and debtors (loan recipients).
- Mortgage payable is a long-term credit, so the tenor is between 10 – 30 years.
- The collateral for the mortgage payable can be confiscated if the debtor is unable to pay up to the specified time.
Article 1164 of the Civil Code (KUH Perdata) has regulated what items can be used as mortgage collateral. Based on these rules, mortgage objects are as follows:
- Fixed objects such as land and buildings on it.
- Business rights and rights to construct buildings on other people’s land (rights to build a building on another person’s land).
- The right to use an object and its accessories.
- Land interest that is paid in money or land yields.
- Flowers as before.
- Market with government recognition, including the rights attached to it
Legal Procedures for Establishing Mortgage
Mortgage is one of the solutions to buy a dream property when we don’t have enough funds. You do this by submitting a mortgage to the bank using this system. The collateral object is a certificate of the house that we are going to buy.
So, before submitting, let’s look at the following ways to make a mortgage:
Make a deal with the lender. If the creditor is a bank, the bank will check the customer’s financial history.
- If the bank agrees, a credit agreement clause will be prepared.
- One of the mortgage provisions is that it must be done through an authentic deed, therefore
- you must submit an official deed before the Land Deed Making Officer (PPAT).
- The PPAT will issue a mortgage deed and your agreement with the bank is valid according to law.
Mortgage Write-Off Procedure
There are several conditions that cause mortgages to be written off or no longer valid. The reasons for the write-off of a mortgage are as follows:
- The debtor has paid his installments to full.
- There was a legal dispute and got a court decision that the mortgage was written off.
- The creditor voluntarily assumes that the debtor’s debt is paid off.
Advantages and Disadvantages of Mortgage
As previously explained, a mortgage is a credit system that makes it easier for us to buy property, but on the one hand, a mortgage can also be a boomerang for you. The following are the advantages and disadvantages of mortgages.
- Can purchase assets even though the funds are not sufficient.
- Collateral can be in the form of property that is being paid in installments, so you don’t need to guarantee your personal assets.
- The assets that you make collateral can still be occupied alone.
- There is a risk of losing assets in the event of default.
- Applying for a mortgage at a bank is quite difficult and the process is long.
- The longer the repayment period, the higher the interest rate.
That’s a complete discussion of what a mortgage is and its conditions. To help you get your dream property with careful planning, low daily interest, tenors of up to 25 years, and easy installments.