Secondary financing for industrial properties

>First National’s second mortgages are smart-risk solutions that enable borrowers to access capital and avoid penalties associated with breaking a first mortgage mid term.

Second mortgages are often used to access the equity in a property when a borrower wants to purchase another asset or renovate/repair an existing property. Borrowers with a first mortgage may be eligible for secondary financing on the same property.

A strong operational history, property quality and location, as well as the borrower’s liquidity and net worth are key considerations for this type of financing.

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Economic and political developments – both in Canada and globally – can impact the commercial real estate market. First National experts follow these trends closely and provide honest, real and professional perspectives into what they could mean for your portfolio.

Smart risk solutions in action for industrial

See how we’ve applied our financing products innovatively to help industrial borrowers achieve their goals with performance and value.

Refinance of a 4-storey, 31-unit property to payout existing mortgage and pay down another credit facility.

$3.3 Million
31 units
Labrador, Newfoundland

CMHC insured first mortgage
5 years term, 40 years amortization
LTV: 59%

CMHC market, non-recourse, refinance of a 3-storey, 31-unit property to extract equity.

4.1 Million
31 units
Victoria, British Columbia

CMHC insured first mortgage
5 years term, 40 years amortization
LTV: 65%

The borrower intends to recapitalize the assets and use the equity take out proceeds for general corporate purposes.

84.9 Million
458 units
Mississauga, Ontario

CMHC insured first mortgage
10 year term, 30 years amortization
LTV: 55%

CMHC market refinance of a 4-storey, 65-unit property to payout existing mortgage and pay down a revolving credit facility.

4.4 Million
65 units
Moncton, New Brunswick

CMHC insured first mortgage
5 year term, 40 years amortization
LTV: 66%

Internal CMHC market refinance of a 9-storey, 90-unit property to reconcile existing two mortgages

12.1 Million
90 units
Winnipeg, Manitoba

CMHC insured first mortgage
5 year term, 40 years amortization
LTV: 65%

CMHC market refinance of three low-rise multi-unit buildings with 57 units to provide equity takeout.

$7.8 Million
57 units
Miramichi, New Brunswick

CMHC insured first mortgage
5 year term, 40 years amortization
LTV: 73%

Internal refinance of a 4-storey, 42-unit property to provide equity takeout.

$3.7 Million
42 units
Montreal, Quebec

CMHC insured first mortgage
5 years term, 40 years amortization
LTV: 73%

Refinance of a construction loan for a 4-storey, 180-unit retirement home.

$51 Million
180 units
Calgary, Alberta

CMHC insured first mortgage
10 years term, 35 years amortization
LTV: 82%

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Latest resources and insights

Original perspectives and personal viewpoints on developments and industry trends in commercial real estate.

Growth, Value and Risk

Bank of Canada reduces its benchmark interest rate to 4.25%

Even though the Bank of Canada reduced its policy interest rate in both June and July, the Bank was at it again today. Read the summary here.

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Expert insights

A mid-year update from Scott Mizzen

On June 5th, Canada became the first G7 nation to reduce interest rates and followed that precedent-setting move with another 25-basis point decline on July 24th.

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Borrower perspectives

Borrower Perspectives: Rob Piroli, President, Piroli Group

Founded in 1992 in Leamington, Ontario, Piroli Group started in general contracting (under the name of Piroli Construction) but has evolved into a multi-faceted development group.

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Capital Markets update

Market Commentary: An overview of this week’s federal budget

Jason Ellis provides an overview of this week’s federal budget, rates, the housing market and more. Read the commentary here.

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View other industrial mortgage solutions

Standard Financing

First National’s standard financing programs are favoured by borrowers when acquiring a new property or refinancing an existing building. Loan terms typically range from three to five years, have a fixed interest rate, and are closed to prepayment for the term’s duration.

Bridge financing

First National’s bridge loan terms usually range from three months to three years, include floating interest rates and allow some form of early prepayment. Borrowers choose this solution until standard financing is secured or while they contemplate a property sale, a change in ownership structure or complete operational improvements.

Asset repositioning

First National enables owners to access a property’s equity for a short term, typically two years or less, to fund capital improvements or repairs without the need to raise capital from personal sources or less flexible, higher-cost alternatives.

Development / Construction

A First National construction loan provides funds to cover the cost of building or rehabilitating a property with terms typically of three years or less.