Mortgage Services
Construction and custom-build mortgages in NS, NB & PEI
Why construction mortgages are a different animal
A standard purchase mortgage funds in a single advance the day you close. A construction mortgage funds in stages — called draws — tied to specific milestones in the build: foundation poured, framing complete, lock-up (roof, windows, doors in), drywall and mechanical, and final completion with occupancy permit. At each draw the lender sends an appraiser or inspector to verify that the work to date matches what's being claimed, then releases that portion of funds to you or directly to the builder. You pay interest-only on the drawn balance during the build, then the loan converts to a regular principal-and-interest mortgage at completion. Get the draw schedule wrong and your trades go unpaid while you wait for an inspection — which is why lender choice and broker coordination matter so much.
Owner-builder vs. builder-built
If you're hiring a licensed general contractor on a fixed-price contract, you're "builder-built." The lender pool is broad, draw schedules are clean, and most A-lenders will fund the file. If you're acting as your own GC — sourcing trades, managing the schedule, and pulling permits yourself — you're "owner-builder," and the lender pool shrinks significantly. Owner-builder files require stricter draw inspections, larger contingency reserves, and proof you have the experience or oversight to actually finish the project. Rahul has placed both, but they take different lenders and very different paperwork. Knowing which path you're on changes the first conversation.
Draws, holdbacks, and the realities of paying trades
Nova Scotia, New Brunswick, and PEI all require a builders' lien holdback of 10% on each draw, held by your lawyer for 60 days after substantial completion. That holdback is not a lender problem — it's a legal one — but it affects how much cash actually reaches the site after each draw. Combined with appraiser turnaround time (often 5–10 business days in rural areas), draws can stretch trades' patience thin if no one is coordinating. Rahul pushes appraiser, inspector, lawyer, and lender in parallel at each milestone so funds release on time and you're not the bottleneck.
Renovations and purchase-plus-improvements
Major renovations follow a related but different path. Purchase-plus-improvements and refinance-plus-improvements programs let you roll up to roughly $40,000–$50,000 of renovation cost (sometimes more on a custom underwrite) into the mortgage based on the post-completion appraised value. The funds are held back by your lawyer and released after the work is done and re-inspected. For larger renovations — additions, gut rebuilds, accessory dwellings — we move into true construction financing with proper draws. Rahul will steer you to whichever path is cheapest and least painful for the scope of work.
Who this is for
What we arrange
Construction Mortgages (Progress Draws)
Standard 3-5 draw construction loans with milestone-based funding and interest-only payments during the build.
Owner-Builder Financing
For homeowners acting as their own general contractor — stricter inspections, but the right lender pool exists.
Renovation Financing
Purchase-plus-improvements or refinance-plus-improvements that fund the reno based on the post-completion value.
Construction-to-Permanent
One mortgage that funds the build then converts automatically to a regular term at completion. One application, one legal.
Spec Build for Small Builders
Financing for builders putting up 1-3 spec homes per year — including model homes and presale projects.
Draw Schedule Management
We coordinate appraiser, inspector, lawyer, and lender at each draw so you're not chasing payments mid-build.
How Rahul handles a construction file
- 01
Pre-build feasibility
We review the budget, contract, lot, and your income before you commit to the build.
- 02
Right lender, right product
Construction lenders are a smaller pool. We pick the one that matches your build type and timeline.
- 03
Draw coordination
We chase appraiser, inspector, and lender at each draw so trades get paid on time.
- 04
Conversion to permanent mortgage
At completion we lock in your long-term rate and term — clean handoff to occupancy.
FAQ
How does a construction mortgage work?
The lender funds the build in stages (draws) tied to construction milestones — foundation, framing, lock-up, drywall, completion. You pay interest only on the drawn amount until the build is done.
How much down do I need on a new build?
Typically 20% on a self-build or custom build at A-lenders. Some insured programs allow less for first-time buyers building with a registered builder. We'll tell you what fits.
Owner-builder vs builder-built — does it matter?
Yes. Owner-builder financing is its own lane with stricter draw inspections. Builder-built (turnkey contract with a licensed builder) is much more common and simpler to fund.
Can I roll my existing mortgage into the new build?
Often yes — through a construction-to-permanent product that converts automatically into a regular mortgage at completion. One application, one set of legals.
What's a draw schedule?
The agreed milestones at which the lender releases funds. Typical schedules have 3-5 draws. Each draw needs an inspection and progress documentation. We coordinate it so you're not chasing.
Do I need permits and approvals before applying?
You'll need approved drawings, a fixed-price contract (or detailed budget if owner-built), and zoning/permit confirmation before the lender will commit final terms.
Can you finance major renovations too?
Yes — purchase-plus-improvements and refinance-plus-improvements programs roll renovation costs into the mortgage based on the post-reno value.
What if my build runs over budget?
Build a contingency in (10-15%) from day one. If you still go over, we have private and second-mortgage options to bridge to completion.
Planning a build?
A 15-minute call is enough to map out your file, the right lender lane, and what to gather. No pressure, no fees.
Last reviewed: May 2026