Development / Construction

A construction loan helps borrowers manage periodic payments for contract work during the building of a real estate asset. Construction financing is available for condominiums, retail, office, industrial, retirement and purpose-built apartments. An exit strategy for the construction loan is one of the key considerations for funding (i.e. standard financing or individual sales of mixed-use units). 

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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.

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

Refinancing an existing construction loan and provide equity withdraw

  • $5 million
  • 5,934 sq. ft.
  • Montreal, Quebec
  • CMHC refinancing first mortgage
  • 5 years term, 35 years amortization
  • LTV: 85%

Withdrawing equity on the property for other real estate investments

  • $8 million
  • 65 units
  • Coquitlam, British Columbia
  • CMHC insured first mortgage
  • 5 years term, 25 years amortization
  • LTV: 58%

Provide funds to construct a mixed-use six-storey development

  • $69 million
  • 207 units
  • Victoria, British Columbia
  • CMHC insured affordable flex first mortgage
  • 10 years term, 40 years amortization
  • Residential LTV: 90%, Commercial LTV: 69%

Refinancing existing debt and an operating line used in construction expansion

  • $5 million
  • 9,445 sq. ft.
  • Kitchener, Ontario
  • Conventional first mortgage
  • 5 years term, 25 years amortization
  • LTV: 69%

A bridge loan to facilitate the purchase of the condo building

  • $4 million
  • 21 units
  • Edmonton, Alberta
  • First mortgage bridge financing
  • 2 years terms, interest only amortization
  • LTV: 53%

Providing funds to payout existing construction loan on a mixed-use property

  • $30 million
  • 75 units
  • Vancouver, British Columbia
  • CMHC insured affordable flex first mortgage
  • 10 years term, 35 years amortization
  • Residential LTV: 73%, Commercial LTV: 70%

Providing construction financing development and road work

  • $5 million
  • 50,075 Sq. ft.
  • Kitchener, Ontario
  • Construction financing loan
  • 2 years term, 25 years amortization
  • LTV: 63%

Loan for refinancing of mixed-use property

  • $97 Million
  • 300 units
  • Halifax, Nova Scotia
  • 10 years term and 35 years amortization
  • Loan to value: 83.8%
  • To fund an additional CMHC insured loan and shall rank pari passu with the mortgage

Latest resources and insights

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

Growth, Value and Risk

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

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

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

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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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.