Construction & Development Financing in Nova Scotia

What we finance

From the shovel to the ribbon-cutting — and the land before it:

• Ground-up multi-unit and commercial construction
• Land acquisition and pre-construction / servicing
• Value-add and repositioning projects
• Projects pairing a construction facility with a CMHC takeout

How the money flows

Construction loans fund the project in stages (draws) as the building actually goes up, each confirmed by inspection. The lender only ever advances up to what's built — which protects everyone and keeps the project on a disciplined budget. Getting the draw schedule and cost-to-complete right is central to staying funded.

Planning the takeout from day one

A construction loan is temporary by design. Lenders want a credible takeout — the permanent (often CMHC-insured) mortgage that repays the construction loan once the building is complete and leased — before the first advance. We structure the build backward from that exit so it lands cleanly.

How do construction draws work?

Lenders advance funds in stages (typically 4–6 draws) tied to completion milestones verified by a quantity surveyor or appraiser — for example foundation, framing/lock-up, drywall, and completion. Interest accrues only on the funds actually advanced.

How much equity do I need for a construction loan in Nova Scotia?

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.

What is takeout financing?

The takeout is the permanent mortgage that repays ("takes out") your construction loan once the building is complete and stabilized. We arrange the takeout commitment alongside the construction facility so you aren't exposed at completion.

Do private construction lenders make sense?

Private construction money closes faster with lighter covenants, at higher rates and fees. It's often the right tool for tight timelines, unconventional projects, or borrowers who plan to refinance into conventional or CMHC financing at stabilization.