admin fee
Also called: biaya administrasi
A document and administration fee paid when the mortgage agreement is signed.
What it means
An admin fee or administration fee is a charge for processing the credit application and agreement. It can be a fixed amount or a certain percentage, depending on the lender's terms. This fee is usually paid upfront and does not reduce the loan principal. Families need to include it in their upfront cost calculation.
Why it matters for families
The admin fee may look small, but it can add up together with the provision fee and other costs at the agreement. If it is not budgeted for, a family may be forced to use emergency funds. Understanding the details of the admin fee helps a family compare offers fairly. A misunderstanding can make a family feel cheated when asked for an additional payment.
Example
For example, the admin fee is set at Rp2 million for one mortgage application. This amount is paid on top of the down payment and provision fee. The total upfront funds needed become larger than expected. The exact amount should be asked directly to the lender.
Common misunderstanding
Many think the admin fee can be refunded if the credit is rejected. The correction is that the terms vary and should be confirmed from the start.