Construction Loan Fact Sheet
A construction loan can be used to build a home, renovate, extend or demolish and rebuild a property and generally involves progress payments as construction work is done. This page provides you with information about loans for construction purposes from Freedom Lend.
Product Overview
| Maximum Loan amount | Single Security: $5,000,000 |
| Minimum Loan amount | Single Security: $150,000 |
| Loan to Value Ratio (LVR) | Up to 90% |
| Loan Term | 30 Years |
| Start Date of Construction | Construction must commence within 6 months from the initial draw down date on your Home Loan Contract, and be completed within 12 months from the initial draw down date |
| Loan Options | Principal and Interest loans (P&I) |
| Number of Draw downs | Up to 5 for free |
| Variations to Your Planned Building | If there are any variations to the Building contract or council approved plans, let us know immediately, as they may impact your loan arrangements |
| Credit History | Clear Credit History |
| Lenders Mortgage Insurance | Payable by a borrower greater than 80% |
| Loan Purpose | Construction of owner occupied or investment property |
| Cash Out | N/A |
| Equity | Must have 10% plus costs |
| Acceptable Securities | Categories 1&2 Residential or rural properties up to 25 acres Residential properties greater than 50sqm (exclusive to balconies and parking) |
| Split Loans | 4 splits. Split your loan into more than one portion |
| Redraw | Available |
| Offset | Available at $10 per month |
| Repayment Frequency | Weekly fortnightly or monthly repayments |
| Voluntary Repayments | Extra repayments may be made at any time without penalty |
| Transaction Fees | Unlimited free internet & Phone banking transactions available on your redraw account. Free Transactions for Online banking transfers, Phone Banking transfers, BPay and direct debits |
Set up Fees
| Application Fee | $0 ($498 rebated) |
| Valuation Fee | $0 |
| Lenders Mortgage Insurance | Payable by the borrower greater than 80% LVR |
| Solicitor Documentation Fee | $0 |
| Construction Fee | $775 |
| Yearly Fee | $0 |
| Offset Fee (optional) | $10 per month |
| 3rd party solicitor costs | at cost |
| 3rd party government costs | at cost |
Post Settlement Fees
| Loan Account Variation Fee | $150 |
| Loan Facility Variation Fee | $450 plus Third Party Costs* |
| Settlement Cancellation Fee | $0 |
| Manually Redraw | $25 |
| Ad Hoc Statement Fee | $15 |
| Discharge Administration Fee | $0 when with Freedom Lend over 5 years OR $325 when less than 5 years |
Design and Distribution Obligations (DDO)
| Target Market Determination | View |
* Third Party Costs are costs incurred by services providers external to Freedom Lend and will vary depending on the nature of the service and request. These costs are passed on directly to the applicants.
