Document background
The Offer Letter For Mortgage is a crucial document in Indonesian property financing transactions, serving as the formal proposal from a financial institution to a prospective borrower regarding mortgage terms. It is typically issued after initial loan approval but before the execution of formal mortgage documentation. This document is essential in Indonesian banking practice and must comply with various regulations, including OJK requirements, Bank Indonesia guidelines, and the Law on Mortgage Rights. The letter details all critical aspects of the proposed mortgage including loan amount, interest rates, repayment terms, and security requirements. It forms the basis for the borrower's decision to proceed with the mortgage and, once accepted, leads to the preparation of formal mortgage documentation. The document is particularly important in Indonesia's growing property market, where clear documentation of terms is required for both conventional and Shariah-compliant mortgages.
