Everyone needs a decent home. One of the most popular forms of living is home. Owning a home is a pride of many people.
Nowadays buying a home is no longer so difficult considering the mortgage facility that can help you to own your dream home. Given the high cost of a home, especially in big cities, it is almost impossible to buy a house for cash.
For those of you who don’t know, home mortgages or mortgages are a long-term credit service provided by a bank for a customer to buy or build a home. By using a mortgage for a home purchase, you can pay off in a time frame that you can decide on your own. However, as a guarantee that you will always pay the installment, the bank will make your home attractive.
Before you decide to join the mortgage program, it’s a good idea to know the key terms that are commonly used. Well, in this article, TimiKimi will talk about the things and terms you need to know from the mortgage. What is it? Check out the review below.
Types of Mortgages
This one-of-a-kind facility will certainly make it easier for people who want to buy a home as the price of home is rising. There are 3 types of mortgage in Indonesia you need to know:
This type of mortgage is for lower middle-class people who want a home. Subsidized mortgages are provided by banks as part of a government program to help finance community home ownership in the form of Healthy Simple Homes. These mortgages will provide subsidies in the form of credit or advance payments.
In contrast to a subsidized mortgage, a non-subsidized mortgage loan will provide terms that meet the general conditions. Interest rates have also been set up by banks providing installment programs.
This type of mortgage is not just for one community, but it is intended for all communities who need a modest payment when buying a home.
The latter type of mortgage is not significantly different from a non-subsidized mortgage. The only difference is in the transaction method, where the mortgage applies the principle of the murabahah or sale-purchase agreement.
After knowing the types of mortgage products, there are several mortgage terms that you should know about Buddy.
Mortgage Lenders are financial institutions or banks that provide funds for mortgage programs. Let’s say you join the mortgage program at bank A, then bank A becomes a Mortgage Lender.
The Mortgage Debtor is the party that will use the Mortgage Facility. It can be in the form of an individual or a legal entity such as PT. If you want to join the mortgage program, then you are a Debtor Debtor.
This term applies to a home or land for which the Mortgage Debtor will buy. If you want to buy a home with a mortgage program, then it’s called a Mortgage Object
According to him, a mortgage is a long-term credit that can last decades. Mortgage Debtors can determine their own mortgage period based on their ability and the amount of their down payment.