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.

To replace the existing land financing

$3.5 Million
25,619 sq. ft.
Victoria, British Columbia

Conventional Mortgage
1 year term, amortization Interest only
LTV: 43.00%

Loan to redevelop the site with two mixed used buildings

$18.4 Million
98,010 sq. ft.
Mississauga, Ontario

Loan financing
3 years term, interest only amortization

To provide land financing while the borrower completes the required financial zoning

$9.5 Million
152,890 sq. ft.
Toronto, Ontario

First mortgage loan
18 months term, interest only amortization
LTV: 67%

Bridge loan to provide capital

$5 million
155,945 sq. ft.
Guelph, Ontario

Conventional purchase
1 year term, Interest only
LTV: 63%

Bridge loan to provide capital for land purchase

$6 million
36,590 sq. ft.
Brampton, Ontario

Conventional purchase
1 year term, Interest only
LTV: 63%

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%

View all recent financings

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 maintains its benchmark interest rate to 4.50%

The Bank of Canada made its second policy decision of 2023. After eight consecutive increases stretching back to March 2022, the Bank finally held its overnight rate steady at 4.50%.

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Expert insights

A First National business update from Jeremy Wedgbury

Economic headwinds caused by inflation, interest rates and supply chain shortages continue to make for a uniquely challenging environment here in the first week of March 2023.

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Borrower perspectives

Borrower Perspectives: Scott Bearss, Partner and VP Finance - Elevate Development Corporation

We spoke to Scott about his perspectives on how the pandemic has impacted the industry, Elevate’s vision for growth, the company’s priorities heading for 2022/2023 and why he finds First National’s integrity and openness empowering.

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Capital Markets update

Market Commentary: SVB, volatility and rates

An overview of what’s happening in the market from Paul Uffelmann, Director, on our capital markets team.

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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.

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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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.