First National Financial LP
apartment

Construction financing

 

A First National construction loan, whether CMHC insured or conventional, provides funds to cover the cost of building or rehabilitating a multi-family property with terms typically of three years or less.

 

 

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

Borrowers use our construction program to cover land development and building construction costs. Funds can be disbursed on each stage completed, according to a prearranged schedule, or when certain milestones are met. 

Various CMHC-insured programs and conventional construction financing options are available for purpose-built multi-family properties as well as retirement housing, mixed-use properties, and student housing.

An exit strategy for the construction loan is one of the key considerations for funding. Conventional construction loans are repaid from standard financing or the sale of the asset. For CMHC construction loans, there is an automatic conversion option to term financing.

Other critical considerations include the borrower’s experience, net worth and liquidity, as well as the location and quality of the site and market feasibility (especially for CMHC financing).

Speak to one of our empowered advisors to assess options and determine the best course of action for finding and securing a smart-risk mortgage. 

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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.

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Smart risk solutions in action for multi-family

See how we’ve applied our financing products innovatively to help multi-family 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%

Latest resources and insights

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

Growth, Value and Risk

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.

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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.

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Borrower perspectives

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.

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Capital Markets update

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

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View other multi-family mortgage solutions

CMHC financing

As Canada’s largest CMHC-approved apartment lender, we are experts in securing insured financing that offers lower interest rates, higher loan-to-value ratios, and longer amortizations. An insured mortgage enables borrowers to manage cash flow more effectively and realize higher investment returns.

Learn More: CMHC financing

Standard Financing

First National’s standard financing programs are favoured by borrowers when acquiring a new property or refinancing 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. 

Learn More: Standard Financing

Bridge financing

First National’s bridge loan terms usually 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. 

Learn More: Bridge financing

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.

Learn More: Asset repositioning

Secondary financing

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

Learn More: Secondary financing
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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.