Posts Tagged ‘Mortgages’

Tips for Buying Houses Through Mortgages

Tuesday, June 14th, 2011

If you want to own a home but your money is limited, you do not worry, go to the bank around you. Now this is not difficult to ask the mortgage with various interest rates.

But before you go, you’ll want to know about the ins and outs of mortgages filed tips.

Based on the explanation of Bank Indonesia, the mortgage is a credit facility provided by banks to individual customers who will buy or repair homes.

In Indonesia, now known there are two types of mortgages:
1. Mortgage subsidy, which is a credit that is intended to lower middle income people in order to meet the needs of housing or home improvements that have been owned. Forms of subsidies given in the form of subsidies
ease the credit and subsidies increase the development fund or home improvement. Credit subsidies are regulated separately by
government, so that not every community who apply for credit to be given this facility. In general, the restrictions set by the Government in providing the subsidy is a maximum income of applicants and loans.

2. Non-subsidized mortgages, which is a mortgage that are intended for the entire community. Conditions set by the bank’s mortgage, so that
determining the amount of credit and interest rate policy is appropriate bank.

What mortgage requirements?
In general terms and conditions treated by banks to home loan customers who would take relatively the same, both of the administrative side as well as the determination of credit. To apply for a mortgage, applicants must attach:
1. Identity Card
2. Family Card
3. Description of income or salary slips
4. The financial statements (for self-employed)
5. Personal tax ID (for loans above Rp 100 million)
6. Personal Income Tax Return (for loans above USD 50 million)
7. Copy of certificate of the parent and / or fractions (when bought from the developer)
8. Copy of certificate (if the sale and purchase individual)

The cost of mortgage process
In general, mortgage facilities the applicant will incur some costs, such as: appraisal fees, notary fees, bank fees, the cost of fire insurance, life insurance premium costs during the credit period.

Interest Calculation Method mortgage
Generally known for 3 methods of interest calculation is:
1. Flat
2. Effective
3. Annual and Monthly annuity
In practice interest rate method used is effective or annuity rates.

Advantages of Mortgage
- Customers do not have to provide funds in cash to buy a home. Customers simply provide a cash advance.
- Because the mortgage has a long period of time, the installment is paid can be accompanied by expectations of increased revenue.

Tips:
1. When you buy a house from an individual, make sure that the certificate is not problematic and there is a building permit in accordance with the existing building conditions.

2. When you buy a house from the developer, make sure that developers have referred already permits, among others:
a. Land Appropriation Permit: Location Permit, Aspect stylist use of land, which was approved Site Plan, etc.
b. Infrastructure already available
c. Soil conditions ripe
d. Minimum land certificate or HGB SHGB Parent on behalf of developers
e. Parent BMI

3. Know your seller reputation (individual or developer).

4. Do not make buying and selling under the hand, it means if a house to be purchased is still in the bank as collateral, then do the transfer of credit at the bank concerned and the deed of sale and purchase made before a notary public. Never make the transfer of credits under his hand, meaning that on the basis of trust alone and sign a receipt, the only evidence used to, because banks do not recognize this transaction.

Property Investment with Mortgages

Monday, January 17th, 2011

You can have your own home by using home loan or mortgage. Having your own home is a dream for many people, especially if you have a family. The desire to live independently and separately may be one reason. Obstacles faced when they want to own their own home is an expensive house prices. One solution that can solve this problem is to do a loan in the bank, known as mortgage or home loan.
House as a shelter and a family gathering it is one of the basic necessities. In addition, buying a home is one way to invest because house prices are rising every year. However, house prices are not cheap. If you think to save money before buying a home, chances are after the money collected; housing prices are no longer together but have taken part so that the dream of buying a home bounced back delays, so to buy a home or other property, home loans or mortgage of choice.
What should be noted at this time if you plan to buy homes on credit with the mortgage?
• Interest rate of mortgage
The amount of interest rates will determine the size of the installments to be paid. In order to obtain a lightweight installment, look for low interest rates. Note also the types of flowers are offered. There are banks that offer low interest only at first, maybe for 6 months or one year.

For that, choose banks that offer low interest rates and the period is longer. However, note also other things in addition to interest rates.
• Accelerated Repayment
Most people want the debt paid off immediately for payment of installments to be completed. If you intend the same time, ask the bank how the procedure if the payment is accelerated or facilities pay some money to reduce the principal debt. There are banks that charge a penalty if you make payments could be accelerated or after a specified period. Choose the flexibility to redeem more quickly or without penalty.
• Other Costs
The bank will charge various fees to customers who will receive a home loan. Such costs include facility fees, insurance costs, administrative costs and other expenses. It would be more ease when choosing a bank with lower costs. Try to bargain for those costs. For example bargain fee.

Islamic mortgages
Housing loan provided by conventional banks can not provide a fixed installment to its customers. These are things that sometimes burdensome for customers because of the uncertainty overshadowed the number of installments to be paid for subsequent years.
Responding to this problem, Islamic mortgage could be an option. Using Sharia mortgages allow customers to pay in fixed installments until the end of the loan period. This is because the Islamic mortgage trading system. For example: the price of home you want to buy for USD 200 million. The Bank will sell to you by taking advantage of Rp 100 million, so house prices to Rp 300 million. If you take the tenor for 10 years, mean number of installments to be paid each month is USD 300 million divided by 120 months (10 years), the result is Rp 2.5 million per month to 10 years.
Other system offered by Islamic banks is a hire-purchase system in which the bank determines the rental price of the house to its customers. For example, a lease that is determined is Rp 2 million per month for 1 year. Then, the rental price may change next year depending on a review of the bank, for example, to Rp 2.5 million a month. If it is up to the time period you set, say after 10 years. You can buy the house you live with a fairly cheap price, perhaps just by paying USD 20 million at the end of the tenth year, you have to have a house through a mortgage in those bank. Taking Loan is need of consideration. For those who lend money, banks impose interest for money borrowed. The amount of interest that is given to follow the economic situation around us, which means that interest can rise or fall following the interest rate the central bank. It would be very burdensome when installments should increase due to rising interest rates.
However, with investment in property in this case buying a house, but would also benefit. Land and house prices tend to rise, so that it can be used for the future. Although able to benefit, home loans through mortgage need good planning and appropriate.