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 $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 Interest Only (I/O) during construction phase (max 12 months) reverting to Principal & Interest.
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 post construction
Offset N/A
Repayment Frequency Monthly repayments during term of construction. After construction, weekly, fortnightly or monthly.
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 ($600 rebated)
Valuation Fee $280
Lenders Mortgage Insurance Payable by the borrower greater than 80% LVR
Solicitor Documentation Fee $0 ($150 rebated)
Construction Fee $250
Yearly Fee $0

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
$200 when less than 5 years

* 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.