Mixed use property

Smart-risk lending solutions for mixed-use property owners and developers

As the name indicates, mixed-use properties come in all shapes and sizes, and so do First National’s lending programs for this asset class.

We understand and appreciate the different configurations of mixed-used assets because we work with developers and asset managers across the country to achieve their goals through empowering advice and strategic capital.

Throughout our history of lending across Canada, we have amassed significant experience in financing mixed-use assets that include residential units along with a commercial component in the same building, which can include office and retail.

CMHC Financing

First National’s insured financing programs are ideal for borrowers when they acquire a new mixed-used property or refinance.

Standard Financing

First National’s standard financing programs are favoured by borrowers who look to acquire a new property or refinance 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 typically 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 enhance their tenant roster.

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.

Secondary financing

A First National second mortgage enables borrowers to access property equity and use it to purchase another asset or renovate/repair an existing property.

Construction financing

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

Smart risk solutions in action for mixed-use

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

Refinance to pay out of an existing mortgage and a credit facility secured by the borrower's real estate portfolio

$3.9 M
25 units
Iqaluit, NU

CMHC insured first mortgage
10 years term, 40 years amortization
LTV: 65.1%

Refinance of an existing mortgage and equity extraction for capital repairs for other rental properties

$3.6 M
54 units
Ottawa, ON

CMHC insured mortgage
10 years term, 40 years amortization
LTV: 32%

Refinance of an existing debt and equity withdrawal for capital improvements

$5.6 M
16 units
Montreal, QC

CMHC insured mortgage
5 year term, 50 years amortization
LTV: 92.1%

Refinance to pay out an existing debt and equity takeout for future capital improvements

$1.6 M
5 units
Toronto, ON

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

A new CMHC-insured mortgage to pay out the construction loan used to build the property

$5 M
10 units
Ottawa, Ontario

CMHC insured mortgage
10 year term, 40 years amortization
LTV: 85%

Refinance with a cash injection to pay out an existing mortgage with another lender

$2.3 M
6 units
Toronto, ON

CMHC insured mortgage
5 year term, 40 years amortization
LTV: 84.7%

Acquisition of two identical properties comprising a total of 32 units

$5.6 M
32 units
Boisbriand, QC

CMHC insured mortgage
5 years term, 50 years amortization
LTV: 83.07%

Refinance of an existing mortgage to access equity from the property for capital improvements of the borrower's other properties

$2.4 M
35 units
Clarenville, NL

CMHC insured mortgage
5 years term, 30 years amortization
LTV: 73.3%

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 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.

View all

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.

View all

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.

View all

Capital Markets update

Market Commentary: A catch-up and overview of the markets

First National’s, Jason Ellis, provides an overview as well as an update of the markets including rates, Government announcements and changes to the Commercial mortgages. Read an overview here.

View all

Sign up for Market updates

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.