Home Certificate Loan Take Over: Requirements and ProcessHome Certificate Loan Take Over: Requirements and Process

Do you need a large amount of cash quickly but your house certificate is still used as collateral? If so, a take over loan with a property certificate as collateral could be the right solution.

This option allows you to pay off the remaining debt at your current financial institution—especially if it has high interest rates—and transfer the loan to a new lender with more affordable terms.

So, how does the take over process for bank or financing loans secured by property certificates work? What are the requirements? This article will explain everything you need to know. Read on to learn more.

What Is a Take Over Loan Secured by a Home Certificate?

A take over loan secured by a home certificate is the process of transferring an existing credit facility from one financial institution to another. This usually applies to loans such as mortgages or other financing products that use property assets as collateral.

In this process, you as the borrower have the opportunity to renegotiate the credit structure with the new financial institution. The new lender will settle the remaining balance of your loan with the previous institution.

After that, a new loan agreement is issued with terms and conditions that better match your current financial capacity.

Typically, the types of property certificates that can be transferred include:

Freehold Title Certificate (SHM)
Right to Build Certificate (SHGB)
Shophouse or office unit certificates
Apartment ownership certificates (Strata Title)

Many financial institutions and financing companies offer home certificate take over programs because they are flexible and competitive. Some even offer penalty-free early repayment options.

This process is also legal and commonly practiced, provided it follows transparency principles and meets the applicable civil law requirements.

Under the regulations of Indonesia’s Financial Services Authority (OJK), this practice is known as “credit restructuring through take over” and is considered a risk mitigation mechanism for problematic loans by financial institutions.

Why Many People Choose Home Certificate Loan Take Over

A home certificate loan take over is one of the strategies many borrowers use to manage their existing credit obligations. There are several reasons behind this choice.

1. Lower Interest Rates

Financial institutions that offer loan take over services often provide lower interest rates compared to the previous lender. This difference can significantly reduce monthly installments.

For example, if your initial monthly installment is Rp5 million, a 1–3% reduction in interest could reduce your payment by hundreds of thousands of rupiah per month, which can greatly ease household finances.

2. More Affordable Monthly Installments

Another reason borrowers apply for a take over is the possibility of obtaining lower interest rates or extending the loan tenure.

For instance, if the original loan period was 5 years, the new lender may extend it to 10 years.

This extension can make monthly installments more manageable, helping reduce financial pressure and allowing you to restructure your finances without disrupting productivity.

3. Preventing the Risk of Losing Your Asset

Financial conditions can change over time. Someone who was once able to meet loan obligations may eventually struggle to keep up with payments.

In such cases, the lender has the legal right to execute the collateral through auction based on the mortgage rights attached to the property certificate.

A loan take over can act as a protective measure before the asset reaches the risk of foreclosure.

Through this process, the new financial institution settles the existing debt and provides you with a new repayment scheme.

4. Opportunity to Increase the Loan Limit

If the value of the collateral is higher than the remaining debt at the previous institution, the new lender may provide a top-up loan.

For example:

Remaining loan balance: Rp150 million
Property collateral value: Rp400 million

In this case, the new lender might approve a new loan limit of up to Rp300 million. After paying off the old loan, you could receive around Rp150 million in additional funds.

5. More Flexible Policies

Today, many financial institutions understand that borrowers may face financial challenges. As a result, they offer more flexible take over programs, such as:

No early repayment penalty
Waived provision fees
Simpler document requirements

Some digital financial institutions even provide online application services, making the process faster and reducing administrative costs.

6. Improving Your Financial Structure

Another advantage of a take over loan is the opportunity to improve your financial structure without having the loan categorized as non-performing, which could affect your credit score.

For example, when income decreases, this strategy allows borrowers to obtain lighter installments without having to apply for restructuring with the original lender.

Requirements for a Home Certificate Loan Take Over

In general, the requirements for a bank or financing loan take over using a home certificate as collateral may vary depending on the institution’s policy.

However, the common requirements include the following.

1. Previous Credit History

The new lender will evaluate your credit history with the previous institution, including your payment performance in recent months.

If the loan has not yet become fully non-performing but there have been minor delays, the take over application may still be approved. However, if your record is already listed in the OJK blacklist through SLIK (Financial Information Service System), approval chances will be lower.

For example, the take over requirements related to credit history at BFI Finance include:

Installments must have been running for more than 1 year
Maximum payment delay: 20 days
Must attach bank statements showing loan payment history for the last 12 months

2. Complete Property Collateral Documents

Another important requirement is having complete property collateral documents.

Certificates such as SHM or SHGB must be under your name or your legal spouse’s name, and the property must not be involved in any dispute.

3. Proof of Repayment Capability

Financial institutions will also request proof that the borrower has a stable income or reliable source of earnings to ensure future installment payments.

This may include:

Bank statements
Salary slips
Business reports or other supporting documents

4. Statement Letter from the Previous Financial Institution

This requirement is optional. Some lenders request a statement or recommendation letter from the previous institution regarding the status of the loan being transferred.

The purpose is to verify the legitimacy of the loan and ensure the transfer process complies with regulations.

The Process of Taking Over a Home Certificate Loan

After understanding the requirements, you should also know how the process works. In general, the steps include:

Research lenders that offer take over loan services and compare interest rates, provision fees, loan tenures, and other costs.
Choose the financial institution you want and submit an official take over application along with the required documents.
Wait for the property appraisal process, where the lender evaluates the market value of your property and assesses your borrower profile.
Once approved, the new lender will allocate funds to settle your loan at the previous institution after receiving written confirmation regarding the transfer.
After the transfer is complete, you will begin making installment payments to the new lender according to the agreed terms.

Things to Consider Before Applying for a Loan Take Over

Before deciding to transfer your loan, it is important to consider several factors carefully.

1. Administrative Costs

The process may involve several additional costs, including:

Notary fees
Provision fees
Appraisal fees
Life and fire insurance
Bank administrative fees
Early repayment penalties from the previous lender (if applicable)

2. Legality of the Collateral

Make sure the property used as collateral is legally valid and safe to use.

A lender may reject the take over if:

The certificate has legal issues
The building does not comply with permits
The property is located in a high-risk or restricted zone

3. Installment Simulation

Compare the old and new repayment schemes carefully.

Pay attention to:

Total interest over the loan period
Changes in loan tenure
Additional fees

Running a simple installment simulation will help determine whether the take over is truly beneficial.

4. Payment Track Record

Check your personal credit payment history to ensure there are no serious negative records.

A poor credit record, especially one listed in the OJK blacklist, may significantly reduce the chance of approval.

The Best Time to Apply for a Loan Take Over

There is no fixed rule about the perfect time to apply for a loan take over. However, you may consider doing it when:

Your monthly installments start to feel burdensome
Your current loan interest rate is too high
You need additional funds
You want better financial services
Another institution offers a more attractive interest rate
Your credit collectibility has improved

A home certificate loan take over can be an effective strategy to improve your financial situation in the long run. By understanding the definition, requirements, process, and considerations, you can make better financial decisions and avoid potential risks.

If you need additional funds quickly, you can consider applying for financing through BFI Finance. This financing institution is officially licensed and supervised by Indonesia’s Financial Services Authority (OJK), ensuring its credibility and reputation.

BFI Finance offers various financing options using collateral such as: