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Multi-family residential

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. CMHC-insured construction financing is available for purpose-built apartment buildings, retirement and affordable housing.

An exit strategy for the construction loan is one of the key considerations for funding (i.e. CMHC standard financing or individual unit sales for residential condo projects).

Other critical considerations include the borrower’s experience, quality of the site and market feasibility (especially for CMHC financing).

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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.

CMHC insured first mortgage loan used to purchase multi-residential building

  • $2 million
  • 26 units
  • Quebec City, Quebec
  • CMHC insured first mortgage
  • 5 years term, 35 years amortization
  • LTV: 82%

Loan used for the acquisition of rental townhomes

  • $7 million
  • 32 units
  • Oshawa, Ontario
  • CMHC insured first mortgage loan
  • 5 years term, 25 years amortization
  • LTV: 74%

Loan used to liberate equity for real estate investment

  • $3 million
  • 24 units
  • Halifax, Nova Scotia
  • CMHC Insured First Mortgage
  • 5 years term, 30 years amortization
  • LTV: 85%

Providing funds to refinance property and provide equity for future acquisitions

  • $9 million
  • 35 units
  • Vancouver, British Columbia
  • CMHC insured first mortgage
  • 10 years term, 30 years amortization
  • LTV: 68%

A short-term mortgage used to payout the existing construction loan used to build the property

  • $3 million
  • 24 units
  • Picton, Ontario
  • Conventional First Mortgage
  • 6 months term, interest only
  • LTV: 73.8%

A new CMHC mortgage used to refinance the property and repay an existing conventional first mortgage

  • $8 million
  • 17 units
  • Toronto, Ontario
  • CMHC Insured First Mortgage
  • 10 years term, 40 years amortization
  • LTV: 85%

Replacing an existing mortgage and construction facility on both phases of the property

  • $121 million
  • 169 units
  • Vancouver, British Columbia
  • CMHC Insured First Mortgage
  • 10 years term, 40 years amortization
  • LTV: 75%

Refinancing a 19 story apartment building

  • $35 million
  • 150 units
  • New Westminster, British Columbia
  • CMHC first mortgage
  • 5 years term, 40 years amortization
  • LTV: 85%

Latest resources and insights

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

Growth, Value and Risk

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The BoC made some encouraging statements about the state of the economy. Here is a summary.

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Expert insights

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Thomas Kim, Vice President and Managing Director, Capital Markets at First National shares his perspectives on recent economic and market developments and what they may mean for the future.

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Borrower perspectives

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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

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Neil Silverberg, Senior Analyst with First National’s Capital Markets team reviews the latest news in rates and curves, what it means for you, the recent employment numbers and more in this week’s Market Commentary. Read the commentary here.

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View other multi-family mortgage solutions

CMHC financing

Typically, CMHC-insured financing offers lower interest rates and longer amortizations, enabling borrowers to manage cash flow more effectively and realize higher returns.

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Standard Financing

Standard financing is usually considered when borrowers are acquiring a new property or refinancing an existing one and want longer-term financing with predictable payments.

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Short-term (bridge) Financing

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

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Repositioning / renovating financing

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.

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Secondary financing for multi-family residential property

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

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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.

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