Document background
The Offer Letter Mortgage is a crucial document in the Indonesian property financing process, serving as the formal presentation of mortgage terms from a financial institution to a potential borrower. It is typically issued after the initial assessment of the borrower's creditworthiness and property evaluation, but before the final mortgage agreement. The document must comply with Indonesian banking regulations, including Bank Indonesia directives and OJK requirements, particularly regarding disclosure of terms, interest rates, and fees. This document is used when a prospective borrower has met the basic eligibility criteria for a mortgage loan, and the bank is ready to make a formal offer. It contains essential information about the proposed mortgage, including loan amount, interest rates, repayment terms, conditions precedent, and security requirements. The Offer Letter Mortgage forms the basis for the subsequent formal mortgage agreement if the borrower accepts the terms.
