Get the funds you need to build your dream home and take advantage of no ongoing fees with a Freedom Lend Construction Home Loan
If you’re looking to borrow money to pay for the construction of a residential property, the Freedom Lend Construction Home Loan might be right for you. With no ongoing monthly or annual fees, the loan aims to make it as affordable as possible to build your own home.
Once the construction period ends, it features a 100% offset account that enables you to minimise the amount of interest you pay on the principal amount, while flexible repayment options make it possible to tailor a repayment schedule to suit your budget.
If you’re looking to buy an established house rather than build one, consider Freedom Lend’s range of fixed and variable rate home loans.
| Product Name | Freedom Lend Construction Loan |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $150,000 |
| Maximum Loan Amount | $5,000,000 |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 90% |
| Mortgage Offset Account | Yes |
| Mortgage 100% Offset | Yes |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $0 |
|---|---|
| Lender's Legal Fee | $0 |
| Valuation Fee | $0 |
| Ongoing Fees | $0 p.a. |
| Settlement Fee | $0 |
| Discharge Fee | $400 |
Pros
- $0 service fee
- 100% offset account .
- You can borrow up to 90% of properties value
Cons
- $0 application fee
- $0 valuation fee.
- $400 discharge fee
Things to consider about Freedom Lend Construction Home Loan
The Freedom Lend Construction Home Loan is a full doc loan with a competitive variable interest rate. With a maximum loan-to-value ratio of up to 90%, you’ll be required to have at least a 10% deposit saved but you won’t have to worry about the cost of lender’s mortgage insurance (LMI).
Available for the construction of both residential and investment homes, this mortgage product allows extra repayments to be made, and also comes with a 100% offset account which helps keep your interest payments to a minimum.
Features of the Freedom Lend Construction Home Loan
- Maximum loan amount. The maximum amount you can borrow with the Freedom Lend Construction Home Loan is $5,000,000 and the minimum loan amount is $150,000.
- Maximum LVR. As the name of the loan suggests, the maximum allowable LVR is 80%. This means that you need to have at least a 20% deposit saved but that you will not have to budget for LMI premiums.
- Offset account. A 100% offset account is linked to the loan to help minimise your interest payments.
- Repayment flexibility. You can set your repayment frequency to weekly, fortnightly or monthly to complement your budget. Additional repayments are allowed at any time, while interest-only payments are also available for a limited period.
- Redraw facility. Unlimited free redraws are available which allow you to access the extra repayments you make towards your mortgage.
Fees for the Freedom Lend Construction Home Loan
Fees you can avoid
- Monthly fee: $0. There are no monthly service fees with this loan, enabling you to save more.
- Annual fee: $0. There's no ongoing annual fee charged as part of this loan.
- LMI: $amount varies. You can avoid this charge by keeping your LVR under 80%. Borrowing more than 80% of the property's value will see you pay LMI charges.
- Redraw fee: $0. There are no extra fees for accessing extra repayments you've made through your redraw facility.
Fees you can’t avoid
- Application fee: $0. This charge covers the cost of setting up your loan and preparing your loan documents.
- Legal fee: $0. This covers Freedom Lend’s third party legal costs.
- Valuation fee: $0. This fee is designed to cover the cost of having the value of your property appraised.
- Construction fee: $300. This fee is charged to cover the additional setup costs of this loan. Note that there might also be third party costs associated with this loan.
- Exit fee: $400. If you wish to exit your loan agreement at any stage you will need to pay this switch fee.
How to apply for the Freedom Lend Construction Home Loan
If you’ve compared your options and decided that the Freedom Lend Construction Home Loan is right for you, click ‘Apply Now’ to be redirected to the Freedom Lend online application page.
You’ll need to be an Australian resident and at least 18 years of age to apply for the loan.
In addition, you’ll need to provide:
- Your name, address and contact details
- Your date of birth
- 100 points of identification, including your driver’s licence or passport
- Details of your employment and evidence of your income
- Details of any assets you own
- Information about your liabilities
- Information about the property you are buying, including the contract of sale
Once you’ve submitted your loan application a representative from Freedom Lend will be in touch as soon as possible to let you know if you have been successful and to discuss your borrowing needs in greater detail.
Can we get pre-approval for a construction loan with details of the build but not the actual plans. Building with a reputable building company.
Hi Olwyn,
Thanks for your question.
If you are looking to apply for a Freedom Lend Construction Loan, you’ll be required to provide some details of the building contract or tender and draft council plan or specification.
You may have to directly contact FreedomLend if your want to discuss your eligibility, given the details that you can provide them.
Cheers,
Anndy
Get a construction loan to build 2 townhouses
Hi Suresh,
Thanks for your question.
If you are looking to apply for a loan for the construction of townhouses, you may consider getting a subdivision home loan.
A subdivision loan is for anyone who intends to divide one existing title into two or three new titles. This type of loan can also be used to fund construction of the development. Keep in mind that a subdivision loan is suitable only for up to three dwellings to be constructed.
You may also get in touch with a mortgage broker to help you find a suitable loan option for your needs.
Cheers,
Anndy