First National Financial LP
apartment

Asset repositioning for multi-family properties

 

Financing for multi-family property repositioning and renovation.

First National regularly assists borrowers who are ready to enhance the value of their multi-family properties through capital improvements.

 


This short-term financing option, usually two years or less, enables access to a property’s equity to fund capital improvements or repairs and eliminates the need to raise funds from personal sources or less flexible, higher-cost alternatives. The goal is usually to increase rents and/or reduce operating expenses to increase the value of the property and make it eligible for standard financing.

The borrower’s expertise, net worth and liquidity, as well as the location and quality of the property 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.

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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 MLI Select mortgage refinancing to repay the construction loan for a newly developed 50-unit apartment.

  • $12.2 M
  • 50 units
  • Truro, NS
  • CMHC insured first mortgage
  • 5 years term, 50 years amortization
  • LTV: 85%

CMHC Market refinance to pay off the construction mortgage on a newly built 117-unit rental building.

  • $34.3 M
  • 117 units
  • Montreal, QC
  • CMHC insured first mortgage
  • 10 years term, 40 years amortization
  • LTV: 69%

Non-recourse first mortgage under CMHC Market to extract equity for improvements to other properties.

  • $10.8M
  • 69 units
  • Dartmouth, NS
  • CMHC insured first mortgage
  • 10 years term, 35 years amortization
  • LTV: 65%

CMHC MLI Select construction loan for developing an 83-unit purpose-built rental apartment.

  • $51.5M
  • 86 units
  • Saugeen Shores (Port Elgin), Ontario
  • CMHC insured first mortgage
  • 5 years term, 50 years amortization
  • LTV: 92%

CMHC MLI Select refinancing to pay off the existing mortgage and extract equity for property upgrades and future investments

  • $51.5 M
  • 116 units
  • London, ON
  • CMHC insured first mortgage
  • 5 years term, 40 years amortization
  • LTV: 85%

Construction mortgage for the development of 116 stacked townhomes

  • $61.8 M
  • 197 units
  • Toronto, ON
  • CMHC insured first mortgage
  • 10 years term, 40 years amortization
  • LTV: 71%

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%

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 tied a bow on 2024 by cutting its policy interest rate once again today to 3.25%. This latest 50 basis point drop – coming on the heels of reductions in June, July, September and October – is welcome news.

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Expert insights

On November 15, 2024, First National was notified of updates to CMHC’s multi-unit insured mortgage programs. All eight updates come into effect immediately.

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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

Article
First National’s, Jason Ellis, provides an overview as well as an update of the markets including rates, 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

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

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.

Learn More: Construction 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.