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 $250
Loan Facility Variation Fee $450 plus Third Party Costs*
Settlement Cancellation Fee $0
Manually Redraw $25
Ad Hoc Statement Fee $15
Discharge Administration Fee $325 plus Third Party Costs*

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.