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.

Maximum Loan Amount Single Security: $2,500,000
Loan to Value Ratio (LVR) Up to 90%
Loan Term Up to 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) and Interest Only
Number of Draw downs Up to 5 for free
Variation 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 when borrowing greater than 80% Loan to Value Ratio (LVR)
Loan Purpose Construction of an owner occupied or investment property
Cash Out N/A
Equity Must have 10% plus costs
Acceptable Securities Categories 1&2
Residential properties up to 25 acres
Residential properties greater than 50sqm
(excluding balcony and parking)
Split Loans Available. Up to 4 splits
Redraw Available
Offset N/A
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 are available on your offset account.
Free Transactions for Online banking transfers, Phone Banking transfers, BPay and direct debits.
Application Fee $385
Construction Fee $750
Valuation Fee $770 or at cost
Solicitors Fee $297 or at cost
Ongoing Fee $0
3rd party solicitor costs at cost
3rd party government costs at cost
Loan Account Variation Fee $250
Loan Facility Variation Fee $450 plus Third Party Costs*
Settlement Cancellation Fee $330
Manually Redraw $25
Ad Hoc Statement Fee $15
Discharge Administration Fee $795 plus Third Party Costs*
Target Market Determination View
VISA Debit Card – Target Market Determination View
VISA Debit Card – Terms and Conditions 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.

The comparison rates are based on a secured loan of $150,000 over the term of 25 years. WARNING: Comparison rates provided are only given as an example. Your situation may have different amounts and terms which will result in different comparison rates. Please give Freedom Lend a call if you would like to get a clear understanding of your fees and costs.

This information is provided by Freedom Lend Australian Credit Licence 498325 and does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for you.

Interest rates may change at any time. The applicable interest rate will be the rate on the day of settlement for new loans or the day of processing for variations to existing loans. Lending criteria, fees and T&Cs apply.