After you have successfully purchased a house or property, you may want to apply for a mortgage takeover to a different bank. In this case, the lending bank will set some requirements that you must fulfill.
Mortgage takeover or takeover KPR is an effort to transfer ownership and payment of a house to another party, with supervision from the bank, by applicable laws.
What is a takeover KPR?
As the name implies, takeover KPR is the transfer of property financing from one party to another through bank supervision based on applicable regulations.
The home takeover process can change the debtor’s status and move to the new party. Old debtors who paid installments fund within a certain period get cash instead.
In addition, a takeover can also mean that a house is still running its mortgage installments.
The main purpose of a mortgage takeover is to reduce your interest burden and monthly installments. This allows you to save money or pay off your home faster.
For example, you want to move your mortgage from a conventional bank to an Islamic bank or sharia bank. You can also take over from a commercial bank to an Islamic bank.
Switching from a conventional mortgage to an Islamic mortgage is more beneficial because you will get lighter and fixed installments, and you won’t have to worry about changes in interest rates.
How to do takeover KPR
1. Research Bank Options
The first step is to research banks that offer mortgage switching programs. Compare interest rates, related fees, and services offered by each bank. Choose the bank that provides more favorable conditions and suits your needs.
There are various choices of banks that offer conventional and sharia mortgage products. You can also do a KPR move simulation before making a bank choice.
2. Prepare Document Requirements
Prepare the necessary documents for the mortgage transfer application. Usually, the required documents include personal identity, home ownership documents, ongoing mortgage documents, proof of salary slips or financial statements, and other documents requested by the prospective new bank.
3. Submit the Application
Visit your chosen bank and submit a takeover KPR application. Submit all the documents you have prepared to be verified and assessed.
4. Property Valuation
The prospective new bank will conduct a property valuation of your property whose mortgage is currently running at another bank. This process aims to determine the property’s value, which is useful for applying for a new mortgage.
5. Approval Process and Cancellation of Old Mortgage
If your application is approved, the new bank will offer a mortgage offer, including the interest rate, term, and associated fees. Once you approve the offer, the new bank will cancel the mortgage with your previous bank.
During this process, you must also complete all the necessary administration, such as paying administration fees, notary fees, or other fees related to the mortgage switch.
It would help if you remembered that the process of switching mortgages or taking over mortgages may vary depending on each bank’s policies.
Types of Takeover KPR
There are several types of mortgage takeover, namely buy-sell takeover, inter-bank takeover, and underhand takeover. Below is a more detailed explanation:
1. Buy-Sell Takeover KPR
A buy-sell takeover KPR is when you take over someone’s unfinished or paid-off mortgage payments. Usually, the person is unable to continue paying the mortgage.
In this process, three parties are involved: You as the mortgage takeover applicant, the seller of the house you want to buy, and the bank that issued the mortgage.
2. Interbank Takeover KPR
The interbank takeover KPR process is faster than applying for a mortgage at the first bank.
This is because you already have a loan history from the first bank and a home value assessment from that bank.
You can move your mortgage program from one bank to another, which is usually done when another bank offers a lower interest rate or more favorable terms than the bank you originally borrowed from.
Interbank mortgage takeovers can also happen when customers want to switch from conventional bank mortgages to Islamic bank mortgages.
3. Underhand Takeover KPR
An underhand takeover KPR is a non-official method in which the deal happens between the house seller and you, the buyer, without involving the bank.
You will pay the seller some money as a takeover fee, and then you will continue paying the remaining mortgage installments without involving the bank in this transaction.
Requirements for Takeover KPR
To qualify for a takeover KPR, you must meet several requirements before applying to the bank of your choice.
Unlike the first mortgage application, this process requires you to prepare a certificate of ownership as one of the documents that must be submitted.
To carry out a home mortgage takeover, the documents required by the seller and buyer include:
- Copy of certificate with bank stamp
- Copy of Credit Agreement
- Copy of IMB (Building Construction Permit)
- Copy of proof of payment of PBB (Land and Building Tax) that has been paid
- Copy of proof of installment payment
- Original passbook with account number that will be used for installment payments
- Identity data of the seller and buyer, including KTP, Family Card, marriage book, NPWP (Taxpayer Identification Number), latest salary slip, work certificate, income certificate, and photocopy of the last three months financial information from the account.
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