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.

To refinance the property.

$5.1 Million
17,488 sq. ft.
Oakville, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 66%

To provide construction financing for the development of the multiresidential building.

$31 Million
104 units
Winnipeg, Manitoba

CMHC insured construction to term financing
24 months term for construction/lease period, 10 years thereafter
Interest only amortization, 25 years thereafter
LTV: 65%

Refinance under the Market Program

$6.5 Million
71 units
Edmonton, Alberta

CMHC insured first mortgage
5 year term, 35 years amortization
LTV: 64.88%

Funds to be used for capital repairs as well as future acquisitions and new construction of rental properties.

$46 Million
135 units
Port Coquitlam, British Columbia

CMHC insured first mortgage
10 year term, 25 years amortization
LTV: 84.30%

The borrower is refinancing a conventional bridge loan used to purchase the subject property.

$27.6 Million
138 units
Waterloo, Ontario

CMHC insured first mortgage
10 years term, 40 years amortization
LTV: 64.60%

Provide financing for the property to complete the construction.

$27.2 Million
95 units
Montreal, Quebec

Insured 1st mortgage
24 months term for construction, 5/10 thereafter, Interest only amortization during construction, 40 years thereafter
LTV: 93.79%"

To replace the existing land financing with VanCity and to repatriate equity to cover pre-development costs leading up to construction financing.

$2.2 Million
87 units
Victoria, British Columbia

Pre-development financing
1 year term, interest only amortization
LTV: 50%"

This is an active developer / investor in the Halifax market who will use the equity towards their next development or acquisition.

$13 Million
41 units
Dartmouth, Nova Scotia

10 year term, 50 years amortization
MLI Select"

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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.

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