land

Land

Standard financing

Standard financing offers a fixed interest rate and is typically closed to prepayment for the term’s duration. Because land assets do not produce cash flow, standard financing is only considered when the borrower’s plans to hold the land for the long term. Borrowers must prove an ability to cover the mortgage payments from other sources (cash flowing properties or cash reserves).

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An overview of recent First National financings across geographies and asset classes, including a brief summary of deals and the financing amounts.

Smart risk solutions in action for land

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

Loan used to purchase already zoned land for a proposed mixed use development

  • $3 million
  • 442 units
  • Saskatoon, Saskatchewan
  • Conventional First Mortgage
  • 12 months term, Interest only
  • LTV: 60%

Land loan used to fully repay an existing loan and fund an 18 month debt servicing reserve

  • $29 million
  • 189,595 sq. ft.
  • Vancouver, British Columbia
  • Land loan financing
  • 18 months term, interest only amortization
  • LTV: 55%

Funds to assist with the purchase of land and pre-development costs

  • $5 million
  • 119,001 Sq. ft.
  • Toronto, Ontario
  • Pre-development first mortgage
  • 36 months term, interest only amortization
  • LTV: 54%

Repaying existing debt and providing working capital

  • $3 million
  • 421,219 Sq. ft.
  • Drummondville, Quebec
  • Conventional first mortgage loan
  • 3 years term, interest only amortization
  • LTV: 50%

Withdrawing equity to invest in site work for scheduled developments

  • $4 million
  • 56,750 Sq. ft.
  • London, Ontario
  • 8 months term, interest only amortization
  • Conventional first mortgage - Land loan
  • LTV: 60%

Land being constructed into student housing

  • $1 million
  • 80 units
  • Lethbridge, Alberta
  • Conventional first mortgage
  • 6 months term, interest only
  • LTV: 59%

Refinancing land for mixed used building

  • $3 million
  • 66 units
  • Toronto, Ontario
  • Conventional First Mortgage
  • 16 Months term, interest only
  • $2.5 million in 2 tranches

Purchase of land and future development of a 4 storey rental building

  • $2 million
  • 8,702 Sq. ft.
  • Vancouver, British Columbia
  • Land loan financing
  • 24 months term, interest only amortization
  • The borrower to payout land loan with construction financing for a proposed apartment building

Latest resources and insights

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

Growth, Value and Risk

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The Bank of Canada made its third interest rate decision of 2021 and presented its new base-case projection for inflation and growth in the economy in its quarterly Monetary Report.

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Expert insights

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With provincial borders closed, the traditional drivers of demand for British Columbia’s multi-unit housing markets are gone. What does this mean to property owners and developers in 2021? Find out here.

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Borrower perspectives

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Tavish Rai, Abstract’s Chief Asset Officer and Partner, shares his perspectives about Victoria’s current evolution, Abstract’s shift in focus back to market housing and why First National’s industry knowledge and responsiveness are so valuable.

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Capital Markets update

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Neil Silverberg, Senior Analyst, Capital Markets, provides a post budget wrap-up, an overview on this week’s BoC announcement and more. Read the full commentary here.

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View other land mortgage solutions

Short-term (bridge) financing

Bridge financing addresses a borrower’s short-term needs, usually three months to three years.

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Development / Construction

This short-term financing option enables access to a property’s equity for improvements, renovations or repairs, eliminating the need to raise funds from personal sources.

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