What is the Relationship with Mortgages
let’s find out so we understand better
What is the Relationship with Mortgages, A mortgage is a debt instrument that can actually help people to own property? Come on, find out what this means.
The house is one of the human needs besides food and clothing, formerly known as food, clothing, and shelter.
In addition, the house is also an investment instrument that is quite safe and promising.
To own a house, of course, is not easy because the price is indeed expensive, but there are a number of ways to buy a house.
One of them is through a mortgage that can be used to finance property purchases.
Before knowing more about this instrument, see the explanation below.
What is the Definition of a Mortgage
This word comes from a foreign language and is an absorption word, hypotheca (Latin) and hypotheek (Dutch).
Whereas in English, this word is known as a mortgage, so you already know the origin of the name.
When referring to the Big Indonesian Dictionary or KBBI, this word has two meanings.
First, credit is given on the basis of collateral in the form of immovable objects (assets), then the second definition.
Second, a statement of long-term debt containing a stipulation that the creditor can transfer part or all of the claim rights to a third party.
Another mortgage definition is a debt instrument in which the borrower will pledge property as collateral for his debt.
The debt must be repaid by the borrower with pre-determined payment terms.
Yes, it can be said that a mortgage is a long-term loan or credit scheme provided for property financing.
Generally, this financing does have to spend large funds and cannot be carried out in cash.
Borrowers can repay the money borrowed along with interest until it is paid off and then have full property rights.
Well, it is not surprising that this is also known as a right to property or a claim to the property.
Difference between Mortgage and Pawn
Mortgages and pledges are both debt instruments that require assets as collateral in a debt agreement.
However, it turns out that mortgages and debt have a number of differences between the two, like what?
There are a number of differences, but not all of them will be explained in this article, but only two.
1. Mortgage and Pawn Guarantees
For mortgages, the object that becomes collateral is an immovable asset or object such as land, house buildings, apartments, shop houses, offices, and the like.
In a pawn, the object that is pledged as collateral is a tangible or intangible movable asset or object such as a motor vehicle, jewelry, or electronic equipment.
2. Ownership in Mortgages and Pledges
Those who become debtors or mortgage givers still have the right to occupy the object that is collateral.
Meanwhile, the debtor or pawnbroker must relinquish ownership rights to the object that is collateral to the creditor.
Mortgages, and Property
To buy a house or property in Indonesia, they use a mortgage scheme that is better known as KPR.
KPR (House Ownership Credit) was launched as the name of a home financing program with the above system.
This program is carried out by BTN, a government bank specifically for housing finance.
This mortgage is then better known, people are still familiar with the mortgage system, although, in the end, they forgot this name.
Rights and Obligations of Mortgage Providers
After the mortgage is charged, there will be consequences for both the mortgagee and the beneficiary.
The lender has the right to remain in control of the object, use the object, exercise control that does not harm the mortgage holder, and receive borrowed money.
Meanwhile, the obligation of the giver of this right is to pay the principal with interest from the mortgage guarantee and to pay a penalty if he is late in paying the principal and interest.
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