Construction Loan Calculator
Planning a major renovation or new build? Understand the difference between your Interest-Only construction phase and your permanent Mortgage.
Construction Loan Calculator
Estimating interest-only and permanent mortgage payments for your project.
How Construction Loans Work
Unlike a standard mortgage, a construction loan is a short-term loan that covers only the costs of building. During the construction phase, you typically only pay interest on the money that has been "drawn" to date.
Once the project is complete and has a Certificate of Occupancy, the loan is usually converted (or "refinanced") into a permanent mortgage.
The 'Draw' Schedule
Your lender will release funds in milestones (Draws). Because you only pay interest on the money released, your monthly payment will start low and increase as the project nears completion. Our calculator estimates the payment at the Full Loan Amount.
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