diff --git a/funding/manager.go b/funding/manager.go
index c244076ef..9d8c300a5 100644
--- a/funding/manager.go
+++ b/funding/manager.go
@@ -1750,7 +1750,10 @@ func (f *Manager) handleFundingOpen(peer lnpeer.Peer,
 	// If we are handling a FundingOpen request then we need to specify the
 	// default channel fees since they are not provided by the responder
 	// interactively.
-	forwardingPolicy := f.defaultForwardingPolicy()
+	ourContribution := reservation.OurContribution()
+	forwardingPolicy := f.defaultForwardingPolicy(
+		ourContribution.ChannelConstraints,
+	)
 
 	// Once the reservation has been created successfully, we add it to
 	// this peer's map of pending reservations to track this particular
@@ -1825,7 +1828,6 @@ func (f *Manager) handleFundingOpen(peer lnpeer.Peer,
 
 	// With the initiator's contribution recorded, respond with our
 	// contribution in the next message of the workflow.
-	ourContribution := reservation.OurContribution()
 	fundingAccept := lnwire.AcceptChannel{
 		PendingChannelID:      msg.PendingChannelID,
 		DustLimit:             ourContribution.DustLimit,
@@ -4279,10 +4281,16 @@ func (f *Manager) handleInitFundingMsg(msg *InitFundingMsg) {
 		maxHtlcs = f.cfg.RequiredRemoteMaxHTLCs(capacity)
 	}
 
+	// Once the reservation has been created, and indexed, queue a funding
+	// request to the remote peer, kicking off the funding workflow.
+	ourContribution := reservation.OurContribution()
+
 	// Prepare the optional channel fee values from the initFundingMsg. If
 	// useBaseFee or useFeeRate are false the client did not provide fee
 	// values hence we assume default fee settings from the config.
-	forwardingPolicy := f.defaultForwardingPolicy()
+	forwardingPolicy := f.defaultForwardingPolicy(
+		ourContribution.ChannelConstraints,
+	)
 	if baseFee != nil {
 		forwardingPolicy.BaseFee = lnwire.MilliSatoshi(*baseFee)
 	}
@@ -4291,10 +4299,6 @@ func (f *Manager) handleInitFundingMsg(msg *InitFundingMsg) {
 		forwardingPolicy.FeeRate = lnwire.MilliSatoshi(*feeRate)
 	}
 
-	// Once the reservation has been created, and indexed, queue a funding
-	// request to the remote peer, kicking off the funding workflow.
-	ourContribution := reservation.OurContribution()
-
 	// Fetch our dust limit which is part of the default channel
 	// constraints, and log it.
 	ourDustLimit := ourContribution.DustLimit
@@ -4614,11 +4618,17 @@ func copyPubKey(pub *btcec.PublicKey) *btcec.PublicKey {
 	return btcec.NewPublicKey(&tmp.X, &tmp.Y)
 }
 
-// defaultForwardingPolicy returns the default forwarding policy.
-func (f *Manager) defaultForwardingPolicy() *htlcswitch.ForwardingPolicy {
+// defaultForwardingPolicy returns the default forwarding policy based on the
+// default routing policy and our local channel constraints.
+func (f *Manager) defaultForwardingPolicy(
+	constraints channeldb.ChannelConstraints) *htlcswitch.ForwardingPolicy {
+
 	return &htlcswitch.ForwardingPolicy{
-		BaseFee: f.cfg.DefaultRoutingPolicy.BaseFee,
-		FeeRate: f.cfg.DefaultRoutingPolicy.FeeRate,
+		MinHTLCOut:    constraints.MinHTLC,
+		MaxHTLC:       constraints.MaxPendingAmount,
+		BaseFee:       f.cfg.DefaultRoutingPolicy.BaseFee,
+		FeeRate:       f.cfg.DefaultRoutingPolicy.FeeRate,
+		TimeLockDelta: f.cfg.DefaultRoutingPolicy.TimeLockDelta,
 	}
 }