Definition of Home KPR and its 7 types

What is a home mortgage?

Home Ownership Credit or KPR becomes an interest when buying a home. But what is a home mortgage? The definition of a home mortgage is a credit facility provided by a bank or other financial institution other than a financial services institution (LJK) to finance the purchase of a home.

In this way, the meaning of a home mortgage is an opportunity to buy a home in installments over a specified period of time that is included with specified mortgage interest rates, so you don’t have to have cash on hand to buy a home.

Aside from KPR, there is also something called KPA or Apartment Ownership Credit, but the difference is that the guaranteed property is an apartment unit. If you receive a Certificate of Ownership (SHM) when you apply for a KPR, you will receive a Certificate of Ownership for Housing Units (SHMRS) and a Certificate of Use of Buildings (SHGB) when you file a KPA.

Type of home mortgage?

Before you apply for a mortgage, you need to know what type of mortgage you want to take out. Come on find out

The definition of subsidized home KPR is a type of KPR provided by the government to low-income people through a subsidy program. Subsidized home mortgages have lower interest rates and the requirements for applying for a mortgage are different than other mortgages.

In contrast to subsidized home loans, the meaning of unsubsidized home loans means home loans made by financial institutions to build houses that are not counted as subsidized housing. Unsubsidized mortgages have higher interest rates with stricter mortgage application requirements than subsidized mortgages.

The definition of Sharia House KPR is a KPR that uses Sharia or Islamic principles. That is, Sharia mortgages do not earn interest, but benefit through profit sharing or profit sharing.

In addition, Sharia mortgages also include a win and loss mechanism and prohibit elements of usury.

The meaning of KPR Rumah Griya Multiguna is a type of KPR used to obtain a loan where property is used as collateral or additional credit to repair or expand an existing home.

The definition of the fixed rate mortgage is that the interest rate is always the same throughout the loan period. As a result, the monthly installments remain stable during the term of the loan. This type of mortgage is easier to understand and plan for with monthly payments that don’t change.

Take Over KPR is a unique type of home mortgage. KPR’s definition of the type of home takeover KPR is when a customer who already has a home loan from another bank submits a loan application to another bank for takeover so the customer can continue the installments at the new bank.

The definition of an adjustable rate mortgage is that the interest rate can change during the term of the loan and the interest calculation is based on the reference interest rate at that point in time. Variable interest rates are usually lower than fixed interest rates, with the possibility that they will increase in the future.

What is the process for proposing a home mortgage?

In order to apply for a mortgage, several procedures must be followed, namely:

Preparation: Prepare all the necessary documents such as savings accounts, payslips, photocopies of KTP and others.
Bank Choice: Find financial institutions with mortgage offerings that match individual needs and capabilities.
Apply: If you already know which bank to consider, then submit a mortgage application to that bank. Be sure to bring the completed documents with you.
Verification: The documents and information provided are verified by the bank and verification may require information ranging from real estate appraisals to verifying the condition of a thrift account.
Approval: After the verification phase is complete and the requirements are met, the bank grants the mortgage approval.
Contract Signing: There is an agreement that needs to be signed after approval.
First payment: After signing the contract, the customer must make the first payment in the form of a deposit.

Also read: Real Estate Investing: 20 Pros and Cons of Home Investing vs. Apartment Investing!

What are the requirements for filing a home mortgage?

In order to apply for a mortgage, a few general requirements must first be met, namely:

An Indonesian citizen
Minimum age 21 years and maximum repayment age 55 years, 60 years or 65 years (repayment age depends on job and chosen bank)
Have a steady income
Complete some of the following documents:

Fill out the form provided by the selected bank
Photocopy of the KTP (especially for those who are married for a photocopy of the husband and wife’s KTP)
Especially for married people photocopy of marriage certificate
If you are divorced, you must copy the divorce certificate
Copy of the family card (KK)
Copy of bank statement or savings account for the last 3 months
NPWP photocopy
For employees, there are several documents that need to be copied, namely an income or pay slip and a description of the current position
Photocopy of recent finances
For employed persons, photocopy of the professional practice permit
For entrepreneurs or the self-employed, several documents must be copied, namely company incorporation certificates, profit and loss accounts and trade licences
Be sure to photocopy the title deed of the proposed building.
Include a 4 x 6 passport photo. If you are married, husband and wife must attach a photo.

How is the mortgage calculation?

Want to calculate a mortgage but don’t know how? Below are the steps to calculate a mortgage:

Determine the amount of the loan: Determine the amount needed to buy the house, this could be a down payment and the remaining price of the house.
Calculate interest rates: Know the mortgage interest rates offered by financial institutions. Make sure the information is up to date as interest rates may change from time to time.
Determine the Loan Term: Calculate the length of time you want to repay the loan. Usually 10-30 years.
Calculate the monthly payments: Use the formula for an installment system or an annuity system to calculate how much you have to pay per month.
Calculate Total Costs: Add up all the costs related to mortgages, don’t forget to calculate administration, insurance and other costs as well.

If you’re still confused on how to do mortgage calculations, many now offer mortgage simulations. Usually, these simulations come in the form of a mortgage calculator, which makes it easier to work out what installments to pay.

So, that’s what a home mortgage means. Make sure you fill out all the paperwork and choose the right type of mortgage and choose the installment period that seems most appropriate and feasible. Aside from mortgages, don’t forget to have one household insurance yes, to cover all risks that may arise.