Construction Administration Fee by Bank

chaz · Sep 16, 2019 7:15 pm

Hey folks,

We just got out loan documents from Macquarie for a new home construction. Amidst all the pexa fees and legal fees they've also smacked us with $1500 Construction Administration Fee. They state this is for

"Administration costs during your construction period such as arranging valuation inspections and draw downs."

Is this normal?

becjarrettdalton · Sep 16, 2019 8:09 pm

I’m saying this in a really small voice...unfortunately it is. Every lender has some kind of construction fee charged either up front or per progress draw and it covers the administration side and the valuations. Macquarie have just put theirs up to $1500. They do have a very competitive interest rate and speedy approval process - hopefully this makes the pill a little easier to swallow. Enjoy the build.

plc · Sep 17, 2019 12:31 am

As Bec says yes it is. What Macquarie charge is really on the high side compared to a lot other lenders for the same thing, but there is not much you can do about it unfortunately.

Cheers,

Tom