Over Home Loans: From How to, Cost, Profit, Loss, to Tips

What is Over Home Loans

If you often hear the term over credit, then in simple terms, this is a purchase by transferring credit from the old debtor or the initial owner, to the new debtor or buyer. Usually this over credit is done for the purchase of a house or car. So over home credit is a way of buying a house by continuing the installments of the previous owner. 

You can find out the experience of over-lending homes from several partners and take into account the house you will buy later. Many consider buying a house with this method more profitable because the interest charged is the initial interest from a few years ago when the first buyer executed the sale and purchase agreement and usually the interest at the beginning of the purchase is lower if making the current purchase. But of course you have to make sure that you have a good track record of installment payments in the eyes of the bank.

By using the over-contract house system, the interest used is a new loan fixed interest which is lower than the current loan interest. This means that you can enjoy a lower fixed interest rate and also the possibility to get a new loan with a higher ceiling than the previous loan because the value of the property tends to rise.

Advantages Over Home Loans

The home loan over scheme is also favored by the bank, because the bank can assess the character of customers who have the ability to pay. In addition, the bank also offers a higher ceiling to offer cheaper interest rates compared to the purchase of a used house.

This also applies to over-contracted subsidized houses and also over-contracts of 10 million-something houses. First, the residential over-credit scheme through the bank, and the second is the over-credit scheme using a notary. Both have their own advantages and of course their own disadvantages. Here are the advantages of over-home loans that can be used as a reference.

Advantages of over-lending a home through a bank:

• The house certificate can be reversed in name according to the name of the buyer although it still remains a bank guarantee and can only be taken after the credit is paid off.
• The buyer can go to the bank in his own name.

Advantages of over-lending a home through a notary:

• Faster process because the contract is based on the new buyer and the old buyer in the presence of a notary
• The costs incurred are cheaper because they only hire a notary.

Downsides Over Home Loans

Although it has the advantage of over-lending a home loan also has some disadvantages that you should think about. So you can consider whether this over-credit residence can be the best solution to get your dream home. Here are the downsides of over-lending homes.

Disadvantages of over-lending a home through a bank:

• The application process is more complicated
• It takes a long time because the bank has to do the analysis
• It is possible that the new debtor was rejected by the bank because he did not meet the requirements
• The fee is more expensive because it follows the procedure from the bank.

While the disadvantages of over-crediting a house through a notary are:

• The certificate is still in the name of the old buyer and is still a bank guarantee
• The buyer makes installments on behalf of the old buyer
• There is a fraud loophole if the bank does not know there is an over-credit of the house at the notary, so that the old buyer can pay off the payment to the bank and get a certificate without being noticed by the new buyer.

How to OverPay Home Loans

If you already understand the advantages and disadvantages of over-home loans above, then you can find out how to over-credit a house through a bank or through a notary. This also applies to over-lending homes by way of mortgages or some of them in some online stores. There are two ways to over credit, namely through banks and also through notaries.

How to Over Home Loans Through Banks

That being said, over-lending a home through a bank is an official way that banks and also old buyers know. Here's how:

• Come to the credit department of the administration or customer service to apply for a credit switch.
• Applying for credit as a new debtor replaces the seller's position as an old debtor.
• If the application is approved, then the new debtor will replace the old debtor and will sign a new credit agreement in his personal name as well as a deed of sale and purchase.
• If you choose to over KPR through a bank, then the certificate of ownership will be directly reversed in the name of the buyer even though it is a guarantee at the bank. You can also make installments on personal behalf so as to avoid conflicts with old debtors.

How to OverPay a Home Loan Through a Notary

In addition to using over KPR through a bank, you can also choose to over-contract the house through a notary. Although many parties think that this scheme is not perfect and has the potential for fraud, it is quite safe if you know the old debtor. The process of transferring rights to land and buildings will later use a notarial deed.

Here's how to overpay a home loan using a notary:

• The seller and the buyer come to the notary with the complete file
• The notary makes a binding deed of sale and purchase of the transfer of rights to land and buildings. This is a power of attorney to pay off the remaining installments and a power of attorney to take the certificate.
• The seller prepares a notification letter to the relevant bank about the transfer of rights to the land and building in question. So with this, since the transfer, the seller's rights have not applied to land and building objects even though the installment process and certificates are still in the name of the seller.
• A copy of the deed is handed over to the bank.
• The process of over-crediting a house through a notary is quite easy and cheap. But there is a loophole that makes new buyers feel uncomfortable because the installments and certificates are still in the name of the old buyer.

Cost Over Home Loans

If you plan to over-credit a residence because it can save a lot of funds, then find out first about the cost of over-borrowing a house which turns out to be not cheap. Here are some of the costs that you have to bear when over-lending a house.

Accelerated Repayment Fee for Over-Home Loans

If you intend to pay off the remaining installments before the tenor ends, then you will be fined to the bank in accordance with the original agreement. The amount of this repayment penalty depends on the credit agreement at each bank. Usually, the cost of this fine is calculated from a certain percentage of the remaining principal of the loan. For example, the bank sets 2% of the remaining principal of the loan as an accelerated repayment penalty. So you have to be observant of the remaining principal of the loan if you intend to repay over the home loan.

For credit periods that are still several years, of course, the remaining principal of the loan is still large so that the fines that must be paid also become large because the installment payments at the beginning are used to pay interest.

Administration Fee

The home loan over scheme is a scheme that is carried out like applying for a new credit. So that the management fee is also the same as if you apply for a new credit to the bank. Usually the costs that must be borne by new buyers who choose over mortgage include the cost of appraisal guarantees, notaries, legal and other letters. Don't miscalculate if this administrative cost is greater than you previously imagined.

In fact, buying a residence by over-crediting a house is not wrong. The most important thing is to do careful calculations and complete research on the scheme and the things behind it. Make sure that the cost of taking care of over home loans is cheaper than the increase in mortgage interest installment payments. Pay attention to the repayment penalty whether it makes you lose because of this scheme.

Tips for Buying a House Over Credit

After knowing the ins and outs about over mortgages above, you can follow these tips if you are going to over-loan a house.

Understand the Advantages and Disadvantages

Usually someone sells a house by over-credit because this owner moved out of the location of the house or it could be difficult to continue the installment. These two things will make homeowners release house prices lower than market prices.

But also make sure that the house already has SHM and is pledged in the bank. The process of over-lending a mortgage is usually more complicated and requires additional costs that must be considered. Make sure SHM is in the bank and not on the other side or is in dispute.

Market research

Before choosing one, you certainly have a large selection of houses to buy. Make sure the price of the house you want to overpay the house has a fairly low price compared to the price on the market. Find out about property prices in the area so you don't misstep and get stuck with expensive prices.

Compare with similar properties in the same area or just cheaper than the existing standard. Check the condition of the house directly and meet with the owner to find out the history of the house you are going to buy. If there are parts that need to be renovated, of course this is also a consideration for additional costs or a reduction in the selling price that will be negotiated. This is an important thing in determining over the home loan you are going to do.

Check the completeness of the original documents

In buying a house, the original document file is a condition that must be considered in detail. Do not let you buy a property that is not clear about the ownership documents or legality. If there is a problem with the original document, it will be difficult to proceed to the over-KPR stage, and of course it will bring problems in the future.

Before checking the completeness of the original documents of the property you are going to buy, ask the bank if what important documents must be prepared in the over KPR process.

In general, there are 6 important documents that must be prepared to overpay a home loan, namely a photocopy of the credit agreement, a photocopy of the guarantee certificate at the bank, a photocopy of the IMB, a photocopy of the UN SPPT along with proof of payment of payment, dna of the passbook that will be used for installment payments. With this document, you can breathe a sigh of relief and can move on to the next stage. If you're still not sure, invite a colleague who understands the ins and outs of over home loans to make sure everything is.

Simulate all the necessary costs

Buying property by over-crediting means that you are preparing to take over the installment process. So make sure you know the amount of installments you have to pay every month and how long the remaining installments must be covered.

Pay attention to other costs that must be prepared if it turns out that there are fines, deductions, or other costs that may have to be incurred from this home loan over process.

Get to know the old owner's credit track record

It has been discussed if the reason someone sells the property by over-crediting is because they want to move house or have difficulty continuing installments. Make sure that there are no arrears or fines from the old owner that have not been paid and must be your responsibility in the future.

If there are arrears and fines from the old owner, then it is certain that you are the person responsible for paying off the arrears. To ensure this does not happen, ask for a copy of the proof of payment that has been deposited by the old owner.

Prepare personal documents

To be approved by the bank, you must also prepare the required supporting documents. Usually the documents that must be included for over-crediting a dwelling are almost the same as applying for a mortgage at a bank. Also make sure your credit track record is safe, because the bank will research your previous credit history.

The application will be processed quickly if the bank has ensured you have a good track record. Your personal data will be checked in the debtor information system at Bank Indonesia. But this submission will be difficult if you have a bad track record.

Choose an agreed method

There are two over KPR schemes that are often chosen by the Indonesian people today, over credit through an official bank, or over credit through a notary. If you are already compatible with the property and installment scheme offered, then you can then negotiate about which house loan over scheme to choose.

The over-credit scheme through the bank is indeed fairly safe and official because the bank holds the SHM of the house to be purchased. But the bank process is usually quite complicated in assessing a person's eligibility in applying for over credit.

After knowing the tips for choosing over KPR above, you can now prepare yourself to choose the appropriate residential over-credit method and be more observant in calculating the payment scheme of the property object you are going to buy. 

Expand information related to over home loans through the internet such as over-credit OLX, or some big cities that have easier over-credit opportunities such as over-home loans, over-loans of used homes, and others. Come on, do your future planning early on. 

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