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Annapolis Valley

Calculators · Nova Scotia · last verified 2026-09-20

Nova Scotia construction mortgage calculator

How a self-build is financed: the total, the lot as your down payment, the four draws, the holdback that delays the last one, the interest while you build, and the payment afterwards.

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How does a construction mortgage pay out in Nova Scotia?

In draws against completed stages, not one advance. On a $110,000 lot owned clear and a $420,000 contract with 10% contingency, the $462,000 mortgage releases about $69,300 at start, $115,500 at lock-up, $115,500 at drywall and $161,700 at completion, less a 10% builders’ lien holdback until the lien period expires.

Answered by Riley Oickle, Associate Mortgage Broker, NS licence 3001134 · Verified 2026-09-20 · Sources

$572,000

Total project cost: $110,000 lot plus $420,000 contract and 10% contingency

$462,000

Mortgage required with the lot as the down payment, 80.8% loan-to-value

$8,224

Interest during a 12-month build at 4.45%, draws released evenly

$2,544

Monthly payment once converted, 25 years at 4.45%

Run it on your build

Four draws on the $462,000 example mortgage

Interest only, on what has been advanced (steps 1–3)
Final draw, less the $42,000 holdback (step 4)

Land / start $69,300 released 15% cumulative
Lock-up $115,500 released 40% cumulative
Mechanical and drywall $115,500 released 65% cumulative
Completion $161,700 released 100% cumulative

Builders’ lien holdback: 10% of the contract, $42,000
12-month build in the example
Converts to a 25-year mortgage at completion

Stages and percentages as on the construction page; your lender sets its own. The holdback is released after the lien period expires with no liens registered. Last verified September 20, 2026.

The lot Lot value or purchase price

Build contract Contingency (%)

Cash you are putting in, beyond the lot Build length (months)

Interest rate during the build and after (%)

Starts at 4.45%, the chartered-bank prime rate, Bank of Canada, 2026-09-16. Replace it with the rate you were quoted; construction pricing is usually set off prime.

Total project cost (lot, contract, contingency)$572,000

Lot equity counted as the down payment$110,000

Mortgage required$462,000

Loan-to-value on cost80.8%

Draw 1: Land / start (15% cumulative)$69,300

Draw 2: Lock-up (40% cumulative)$115,500

Draw 3: Mechanical and drywall (65% cumulative)$115,500

Draw 4: Completion (100% cumulative)$161,700

Builders’ lien holdback, 10% of the contract, held from the final draw$42,000

Interest during the build (estimate, draws released evenly)$8,224

Monthly payment once converted, 25 years$2,544

Above 80% loan-to-value the build needs default insurance; the premium is not included here. Lenders advance against the lesser of cost and appraised value, so an appraisal below cost raises the cash you need.

Go deeper

The detail, if you want it

The example, stage by stage

$110,000 lot owned clear, $420,000 contract, 10% contingency, 12-month build at 4.45% (chartered-bank prime rate, Bank of Canada, 2026-09-16). Draws assumed released evenly across the build; interest is simple interest on each draw from its release to completion.
Draw	What must be complete	Cumulative	Released	Month	Months accruing	Interest
Land / start	Lot owned or purchased, permits issued, foundation poured	15%	$69,300	0	12	$3,084
Lock-up	Framing, roof, windows and exterior doors in; weather-tight	40%	$115,500	4	8	$3,427
Mechanical and drywall	Rough plumbing, electrical and HVAC inspected; insulation and drywall complete	65%	$115,500	8	4	$1,713
Completion	Occupancy permit, final inspection, well and septic sign-off, insurance converted	100%	$161,700	12	0	$0
Interest during the build						$8,224

The completion draw of $161,700 is released less the $42,000 holdback; the holdback follows once the lien period after completion has run with nothing registered. Your lawyer does the lien search.

The builders’ lien holdback

Nova Scotia’s Builders’ Lien Act requires the owner to hold back 10% of the value of work and materials as security for unpaid subcontractors and suppliers, released after the lien period following completion expires with no liens registered; lenders build that into the final draw.

First-time owner-builders often miss it, which is why the last month of a build feels cash-starved. Budget for it from the start.

Interest-only during the build, then the conversion

During the build you pay interest only, on money advanced, usually monthly. The estimate above assumes the four draws land at even intervals; a fast frame and a slow finish shifts more of the balance earlier and raises it.

At the final draw the loan converts to a standard mortgage and the amortization starts. You were qualified for the full $462,000 up front at the greater of the contract rate plus 2% and 5.25%, so the conversion is not a second approval unless something has changed. Minimum down matches a purchase, 5% of the first $500,000 and 10% of the remainder (1–2 units), and an insured build needs the as-improved value under $1,500,000.

Up to four owner-occupied units is residential construction; five or more, a rental building or a development for sale is commercial: Indi Mortgage Commercial Division, where Riley also advises. The lender’s checklist and why a draw is refused: Construction mortgages in Nova Scotia →

Why a broker

Licensed, independent, paid by the lender

Licensed in Nova Scotia Associate broker 3001134, verifiable on the provincial register
$0 broker fee On a standard residential mortgage the lender pays, not you
Banks, credit unions, monolines One application, one credit check, placed with the lender that reads your file best
Every part of the province Bedford office, remote process: Yarmouth to Sydney, the same four steps

Questions people ask

How much cash do I need to start a build if I own the lot?

Often none for the down payment. On a $110,000 lot owned clear with a $420,000 contract and 10% contingency, the project costs $572,000 and the lot is 19.2% of it, so the $462,000 mortgage sits at 80.8% loan-to-value. Above 80% the build needs default insurance. The lender’s money still goes in after yours: permits, plans and the first site work are paid before the first draw.

How much interest do I pay during the build?

Roughly $8,224 on the example over a 12-month build at 4.45%, the chartered-bank prime rate, Bank of Canada, 2026-09-16. You pay interest only on money advanced, so the first draw of $69,300 accrues for the whole build and the final $161,700 for none of it. A longer build or a higher rate moves the figure in proportion.

What is the builders’ lien holdback and why does it delay my last draw?

Under the Nova Scotia Builders’ Lien Act the owner must hold back 10% of the value of work and materials as security for subcontractors and suppliers until the lien period after completion has expired. On a $420,000 contract that is $42,000, held out of the $161,700 final draw and released after the period runs with no liens registered.

What is the payment once the build converts?

On the $462,000 example over 25 years at 4.45%, about $2,544 a month. You were approved for the full amount up front at the greater of the contract rate plus 2% and 5.25%, a qualifying payment of $3,081, so the conversion is not a second approval unless something has changed.

Still unsure? Ask me directly.

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Building in Nova Scotia?

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