Building a new home is simple when you can map out your finances from the start. At Asim Ali, our construction mortgage calculator helps you understand all the numbers, from the price of the land to the final construction expenses.

Use this calculator to see how much you need to borrow and what your payments will look like. We make your financial planning easy and clear.

mortgage calculator for new construction

What Is a Construction Loan Mortgage Calculator?

With this cost-to-build-a-house calculator in Canada, it’s easier to find out the actual cost. This online tool helps you determine how much money you need to borrow. It also shows you how much you’ve to pay each month while the house is being built. This is different from a regular mortgage that you might know. You will get money in small steps with a construction loan.

And while finishing parts of the house, you will receive a larger amount. You will have to pay only interest during this time. After the house is done, you can start paying back the full loan like a regular mortgage.

Step-by-Step: How to Use the Mortgage Calculator for New Construction

commercial construction mortgage calculator

If the construction loan calculator seems confusing, then follow this guide provided by Asim Ali’s experts:

Cost of Land

This is how much you will pay for the land where you will build the house. If your land costs $250,000, type “250000” in the box. Do not use commas. Just write the numbers. Make sure you include both the land and the building costs to get the full picture.

Cost of Construction

This amount would be the total amount that you need to build the house.

It includes the price of workers, tools, and building materials like bricks, wood, and paint. If building the house will cost $450,000, type “450000” in the box. Again, do not use commas.

Soft Costs (CAD)

These are extra costs like permits, design, lawyer fees, and paperwork.

However, these are not part of the actual building work. If the actual cost is $50,000, then type “50000” in the box.

Down Payment (CAD)

This is how much money you will pay from your own savings.

You will have to give this money before the loan. Suppose you will pay $100,000; then type “100000” in the box.

Max Loan-to-Cost (%)

It will show you how much of the total cost the bank will lend you.

For example, if the bank will lend you up to 80%, then you have to type “80” in the box. Ask your bank if you’re not sure what number to use.

Construction & Loan Terms

This will help you see how long it takes to build your house. You will also find out how much you’ll pay after the house is done with our construction mortgage BC calculator. Here, take a look at the guide:

Construction Months

You don’t know how long it will take to build your house? With this section, you can find it easily. Suppose it will take 9 months, then type “9” in the box.

Note: You can type any number, like 6, 9, or 12, depending on your project.

Construction Rate (%)

This is the interest that the bank will charge when your house is being built. If the rate is 6.5%, you need to type “6.5” in the box.

Note: Always ask your bank for the correct rate.

Rate After Completion (%)

Here you will find the interest you have to pay after your house is done. It is the regular loan rate. For example, if the rate is 5%, simply type “5” in the box.

Amortization Years

With this, you will know how long it will take to pay back the full loan. Most people choose 25 years. So, if you want 25 years, type “25” in the box.

Payment Frequency

This number is how often you will make payments. You can choose between monthly, biweekly, or weekly. Just choose the one that works best for you.

How to Read the Results?

After filling in all the boxes, click the big blue button and the yellow button. It says, “Calculate Project Loan” and “Calculate Full Loan Payment.” Here’s what you will find:

Construction Interest: Here, you will find the extra money you have to pay the bank. You need to pay this amount while your house is being built.
Post-Completion Payment: The first payment you will make after the house is finished. So, it basically will show you how much you need to pay at the start of your regular loan.
Total Interest (Term): Here, you will see the total extra money. You will have to pay this amount to the bank over the years of your loan.

Use the New Construction Mortgage Calculator Now

Using the construction mortgage calculator is a smart way to plan your future home. It will help you know your loan amount, down payment, and payments during construction. You can use our FREE calculator from Asim Ali as many times as you want. You will find different outcomes based on your input that will make the planning easier for you.