FREEDOM CONSTRUCTION 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: $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. |
SET UP FEES
| 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 |
POST SETTLEMENT FEES
| 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* |
DESIGN AND DISTRIBUTION OBLIGATIONS (DDO)
| 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.
