Commercial Construction Loans in Halifax

What we finance in Halifax and HRM

Halifax is Atlantic Canada's deepest construction market, and the projects we fund reflect where the region is actually building:

• Ground-up purpose-built rental (5+ units) on the peninsula and in Bedford, Dartmouth, and Sackville
• Mixed-use along the North End, Quinpool, and Spring Garden corridors — retail or commercial at grade, rental above
• Infill and mid-rise development on serviced HRM land
• Value-add and repositioning of existing Halifax commercial buildings
• Land acquisition and pre-construction / servicing ahead of a build

Why Halifax construction leans on insured financing

Halifax's rental market is genuinely supply-short — CMHC's 2025 Rental Market Report put vacancy for the most affordable units at roughly 0.7%, alongside record purpose-built completions. That combination is exactly what CMHC's insured construction programs were built for. For new rental, the strongest structure is often a construction facility paired with a CMHC MLI Select-insured takeout, or CMHC's Apartment Construction Loan Program (ACLP) for the build itself — leverage and long amortization that can turn a Halifax deal that fails on conventional terms into one that pencils.

How much you need in the deal

Construction is sized on total project cost, not just land value — and the equity requirement swings widely by program:

• Conventional construction lenders generally want 15–35% of total project cost in equity, and land value can often count toward it
• CMHC MLI Select construction can reach materially higher leverage — up to 95% loan-to-cost for high-scoring rental projects
• Cost-to-complete discipline matters more than the headline loan: the lender advances against what's built, so a realistic budget and contingency keep the project funded

How the money flows (draws)

A construction loan funds the project in stages as the building actually goes up. Each draw is released against inspected progress — typically foundation, framing/lock-up, drywall, and completion — verified by a quantity surveyor or appraiser, with interest accruing only on funds advanced. Getting the draw schedule and cost-to-complete right is what keeps a Halifax project on budget and on side with the lender.

How the process works

A Halifax construction file is set up backward from its exit, so funding never gets ahead of the build:

• Feasibility — test the project budget, cost-to-complete, and takeout math against the Halifax rental market
• Structure — size the facility, set the draw schedule, and line up the CMHC-insured or conventional takeout
• Approve — package the pro forma, plans, and cost review for the matched construction lender
• Draw — advances released against inspected progress through completion
• Take out — refinance into the permanent (often MLI Select-insured) mortgage once the building is complete and leased

Who leads Halifax construction financing at Indi

Matt Legatto leads construction and development financing at Indi's Bedford-based commercial division — pre-construction advisory, budgeting and cost forecasting, feasibility analysis, and draw management. He works with Halifax and HRM builders and developers to keep projects funded from ground-breaking through stabilization. Meet Matt Legatto →

How do construction draws work on a Halifax project?

The lender advances funds in stages (typically 4–6 draws) tied to completion milestones — foundation, framing/lock-up, drywall, and completion — each verified by a quantity surveyor or appraiser. Interest accrues only on the funds actually advanced, and the loan never runs ahead of what's built on site.

How much equity do I need for a commercial construction loan in Halifax?

Conventional construction lenders generally want 15–35% of total project cost in equity, and land value can often count toward it. CMHC MLI Select construction financing can reduce that materially — up to 95% loan-to-cost for high-scoring rental projects. The exact figure is deal-specific, so we model it before you commit.

What is the takeout on a Halifax construction loan?

The takeout is the permanent mortgage that repays your construction loan once the building is complete and leased — frequently a CMHC MLI Select-insured mortgage for new Halifax rental. Lenders want a credible takeout in place before the first advance, so we structure the build backward from that exit.

Does CMHC financing help for new construction in Halifax?

Often decisively. In Halifax's supply-short rental market, CMHC MLI Select and the Apartment Construction Loan Program (ACLP) offer higher leverage and long amortization for new purpose-built rental — regularly the difference between a project that pencils and one that doesn't. We map the CMHC path against conventional before you commit.

Do you finance construction across all of HRM, not just downtown Halifax?

Yes. We arrange construction and development financing across the entire Halifax Regional Municipality — the peninsula, Bedford, Dartmouth, Sackville, Cole Harbour, and Fall River — and throughout Nova Scotia. Where the project sits mainly changes which lender is the right fit, not whether it can be financed.

How long does a Halifax construction loan take to arrange?

Construction facilities take longer than a straightforward purchase because of appraisal, cost review, and draw setup. Conventional construction can move in weeks once the package is complete; CMHC-insured construction commonly runs 60–120+ days through CMHC underwriting. Starting early in the project timeline is the single biggest time-saver.