Construction Financing Options Comparison
Originally published: 26/11/2020 08:14
Last version published: 27/11/2020 08:27
Publication number: ELQ-94716-2
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Construction Financing Options Comparison

This tool allows you to compare two different financing options for your construction project

Description
This tool can be used to compare two financing options for your construction project.

Construction costs are divided into 8 categories - land costs, hard costs, soft development costs, consultants, administration, finance charges, interest, and contingency. The two categories which usually vary from one financing option to another are shown in more detail: finance charges and interest costs. You can collapse these details to view the subtotals only by selecting numbers 1 or 2 at the left side of the spreadsheet.

There are two additional tabs representing the financing options - Option 1 and Option 2.
Each financing option has 3 different loans you can calculate the interest for - Loan 1, 2 and 3.
(you don't have to use them all, it depends on your scenario).

For each loan, the information you need to enter is as follows:

1. The annual interest rate in cell F2 / Q2 / AB2
2. Customize the dates
3. Enter the draw amounts in the specific month/year under New Amounts Advanced

This tool was initially designed for construction of a residential building, but can be adapted for other construction projects.

Please visit our website for more information, or to book a free consultation with one of our accountants.

This Best Practice includes
1 Excel spreadsheet

Nadine Popova offers you this Best Practice for free!

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