mortgage takeover
Also called: over kredit rumah
Taking over someone else's mortgage instalments by paying a sum of money to the previous owner.
What it means
A mortgage takeover is the transfer of mortgage instalments from the previous owner to a new buyer before the loan is paid off. The buyer pays a sum of money to the seller, then continues the instalments in their name according to the bank's approval. This process requires the creditor's approval and document checks.
Why it matters for families
A takeover can be a way into a home at a lower price, but the risk is high if the procedure is not official. A family can lose its down payment if the bank does not approve the transfer. The seller's remaining obligations and arrears must also be confirmed as cleared.
Example
For example, the seller's remaining instalments are Rp300 million and the buyer pays a transfer fee of Rp50 million. Before paying, the buyer checks for overdue bills and makes sure the bank approves the name transfer. These figures are only examples.
Common misunderstanding
It is often assumed that a takeover only requires paying a down payment and then continuing the instalments. The correction: without the bank's approval, the transfer is invalid and prone to dispute.