Bridge financing for multi-family properties

First National’s bridge loans are ideal for borrowers who have yet to secure standard financing or who need the time and flexibility to plot a better future for their multi-family property assets.

Our bridge loan terms typically range from three months to three years, include floating interest rates and allow some form of early prepayment.

Borrowers choose our bridge loans until standard financing is secured or while they contemplate a property sale or plan a change in ownership structure.

Additionally, a bridge loan can be used opportunistically to execute an operational strategy such as renovating the units and renting them to new tenants at higher rents to position the property more positively for standard financing. This type of short-term financing can be used to provide a borrower with enough time to substantially rehabilitate and stabilize a property with the ultimate goal of positioning it for First National insured or conventional financing.

Consistent cash flows, strong operational history, and the borrower’s net worth and liquidity are key considerations for this type of 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.

Refinance of a 4-storey, 31-unit property to payout existing mortgage and pay down another credit facility.

$3.3 Million
31 units
Labrador, Newfoundland

CMHC insured first mortgage
5 years term, 40 years amortization
LTV: 59%

CMHC market, non-recourse, refinance of a 3-storey, 31-unit property to extract equity.

4.1 Million
31 units
Victoria, British Columbia

CMHC insured first mortgage
5 years term, 40 years amortization
LTV: 65%

The borrower intends to recapitalize the assets and use the equity take out proceeds for general corporate purposes.

84.9 Million
458 units
Mississauga, Ontario

CMHC insured first mortgage
10 year term, 30 years amortization
LTV: 55%

CMHC market refinance of a 4-storey, 65-unit property to payout existing mortgage and pay down a revolving credit facility.

4.4 Million
65 units
Moncton, New Brunswick

CMHC insured first mortgage
5 year term, 40 years amortization
LTV: 66%

Internal CMHC market refinance of a 9-storey, 90-unit property to reconcile existing two mortgages

12.1 Million
90 units
Winnipeg, Manitoba

CMHC insured first mortgage
5 year term, 40 years amortization
LTV: 65%

CMHC market refinance of three low-rise multi-unit buildings with 57 units to provide equity takeout.

$7.8 Million
57 units
Miramichi, New Brunswick

CMHC insured first mortgage
5 year term, 40 years amortization
LTV: 73%

Internal refinance of a 4-storey, 42-unit property to provide equity takeout.

$3.7 Million
42 units
Montreal, Quebec

CMHC insured first mortgage
5 years term, 40 years amortization
LTV: 73%

Refinance of a construction loan for a 4-storey, 180-unit retirement home.

$51 Million
180 units
Calgary, Alberta

CMHC insured first mortgage
10 years term, 35 years amortization
LTV: 82%

View all recent financings

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 reduces its benchmark interest rate to 4.25%

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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Expert insights

A mid-year update from Scott Mizzen

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

Borrower Perspectives: Rob Piroli, President, Piroli Group

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

Market Commentary: An overview of this week’s federal budget

Jason Ellis provides an overview of this week’s federal budget, rates, the housing market and more. Read the commentary 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.

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.

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.

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.

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.