KEEPING YOU INFORMED: COVID-19 information for residential customers & commercial borrowers
╲╱

Our residential call centre is experiencing higher than normal wait times.

If you are a residential customer experiencing financial hardship due to COVID-19 and need to request a mortgage payment assistance, please submit a payment assistance request through My Mortgage.

If you are a commercial borrower experiencing financial hardship due to COVID-19, please email our Payments team at commercial.payments@firstnational.ca.

Be assured that we are committed to getting back to all of you who have contacted us.

Your patience is appreciated, and we thank you for your understanding.

Close

mixed-use

Mixed-use

Standard Financing

Properties with stable cash flow and consistent operating histories are favourable candidates for standard financing. For mixed-use assets, this can mean properties that are fully or nearly fully leased, have a majority of tenants on long-term leases and can display a consistent history of strong tenancy. If there is a residential use to the property, historical occupancy and rental rates are also evaluated.

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.

For mixed use, conventional is the most common type of standard financing. However, there are certain scenarios where CMHC financing can apply. CMHC does consider properties with retail and residential if the non-residential component is less than 25 per cent of the floor space and non-residential revenue is less than 25 per cent of the total gross.

Standard financing is usually considered when borrowers want the payment predictability that comes with a fixed interest rate. However, it is important to note that a typical conventional financing term for a mixed-use asset is five years. Longer terms are available, but there is often greater scrutiny on future cash flows. Borrowers must be able to show that longer-term leases (i.e. maturing in 10 years or more) are in place for the duration of the mortgage term.

Commercial Mortgage Backed Securities (CMBS): CMBS is a conventional financing solution available for first mortgages on established, stabilized properties (generally three or more years of stable operating history). This type of financing works well for properties with in-place, stabilized net cash flow.

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.

Subscribe

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.

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

Funding for occupancy permits and rental achievement conditions

  • $2 Million
  • 80 units
  • Halifax, Nova Scotia
  • CMHC insured First Mortgage on the subject property
  • Mixed-use commercial building with 80 multi-family rental units
  • Commercial space is expected to be demised into 4-5 tenants

Financing land and improvements

  • $17 Million
  • 87 units
  • Vancouver, British Columbia

Latest resources and insights

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

Growth, Value and Risk

Article
The Bank of Canada made its first interest rate decision of 2021 and presented its latest base-case projections for inflation and growth in the Canadian economy as part of its quarterly Monetary Policy Report.

View all

Expert insights

Article
Here at First National, the year has started very quickly. After recording tremendous growth in 2020, we have set our sights on doing even more this year.

View all

Borrower perspectives

We spoke to Alain Grandmaison about his view of the industry impacts resulting from COVID-19, whether or not Junic has altered its vision for growth and why First National is a great fit for the new generation of developers.

View all

Capital Markets update

Article
This week’s Market Commentary provides an update on rates and curves, CHT Issuance levels and more. Read it here.

View all

View other mixed-use mortgage solutions

Short-term (bridge) financing

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

Learn More

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.

Learn More

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.

Learn More

Development / Construction

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

Learn More
city

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.

SUNPFNWEB06