Mixed-use

Short-term (bridge) financing

Bridge financing addresses a borrower’s short-term needs, usually three months to three years. Some borrowers choose bridge financing when they need flexibility to decide about the future of an asset (i.e. contemplating a sale, impending change in ownership structure or operational planning) or time to coordinate a standard financing option.

For mixed-use assets, short-term financing may be a strategic solution if many of the property’s leases are approaching maturity.

The flexibility enables the borrower to negotiate new leases or acquire new tenants, ultimately positioning the property more positively for standard financing.

Bridge financing typically includes floating interest rates and usually allows some form of early prepayment. Consistent cash flows and strong operational histories 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 mixed-use

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

Refinance with MLI Select

$5.2 Million
25 units
Montreal, Quebec

CMHC Insured
5 years term, 40 years amortization
LTV: 92.54%

Used to pay out the conventional construction financing from First National Financial LP with additional proceeds used towards the purchase and construction of multi-family developments

$10.3 Million
40 units
Halifax, Nova Scotia

CMHC insured first mortgage loan
10 years term, 40 years amortization
LTV: 84.2%

Refinance the existing debt registered against the property with a CMHC insured first mortgage

$2 Million
6/12 units
Iqualit, Nunavut

CMHC first mortgage loan
10 years term, 25 years amortization
LTV: 75%

Loan used to facilitate the purchase of a mixed-use property

$25 million
1,445,000 sq. ft.
Mississauga, Ontario

First mortgage land financing
36 months term
LTV: 64%

A new first mortgage used to payout the existing first and second mortgage registered on the property

$1 million
18 units
Picton, Ontario

Conventional first mortgage loan
3 years term, 25 years amortization
LTV: 55%

Refinancing an existing debt on a mixed-use mulit-family building

$2 million
17 units
Ottawa, Ontario

CMHC First Mortgage Loan
5 years term, 35 years amortization
LTV: 84%

A new first mortgage used to refinance the existing first mortgage registered against the property

$5 million
48 units
Hamilton, Ontario

CMHC first mortgage loan
5 years term, 25 years amortization
LTV: 65%

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%

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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 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 mixed-use mortgage solutions

Standard Financing

Standard financing offers a term of five years or more, a fixed interest rate and is typically closed to prepayment for the term’s duration.

Repositioning / Renovating

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.

Secondary financing

Second mortgages are often used to access equity in a property when a borrower wants to purchase another asset or renovate/repair a property.

Development / Construction

Construction financing is available for condominiums, retail, office, industrial, retirement and purpose-built apartments.

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