First National Financial LP
apartment

Multi-family residential

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. Properties with stable cash flow and consistent operating histories are favourable candidates for standard financing.

Standard Financing offers a term of five years or more, a fixed interest rate and is typically closed to prepayment for the term’s duration.

For multi-family, the two types of standard financing are CMHC-insured and conventional.

CMHC-insured financing: CMHC-insured financing offers lower interest rates, terms of 5 years or more and higher loan to value ratios, making it the most popular choice for most borrowers. There are also programs available to borrowers (i.e. the Energy Efficiency Program) that can help them increase their loan amounts, access premium credits and lower their monthly expenses.  

First National is Canada’s largest CMHC-insured lender.

Conventional financing: Conventional financing is an excellent option, especially when CMHC-insured financing is not possible as a result of market leading purchase price, borrowers being unable to meet CMHC’s personal guarantee requirements or if a commercial component (retail or office) disqualifies the property from CMHC insurance. The typical term for conventional financing is five years, however seven and 10-year terms can be available.

Commercial Mortgage Backed Securities (CMBS): CMBS is a conventional financing solution available for first mortgages on established, stabilized properties (generally three or more years of stable operating history). This type of financing works well for properties with in-place, stabilized net cash flow.

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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 purchase of the property

  • $1.6 Million
  • 14 units
  • Montreal, Quebec
  • CMHC Insured
  • 5 years term, 30 years amortization
  • LTV: 84.99%

New CMHC insured 1st mortgage to payout existing construction

  • $6.1 Million
  • 23 units
  • Lucan Woods, Ontario
  • CMHC financing
  • 10 years term, 40 years amortization
  • LTV: 68.7%"

A new CMHC insured first mortgage used to refinance the existing mortgage

  • $15.3 Million
  • 179 units
  • Calgary, Alberta
  • CMHC insured first mortgage loan
  • 5 years term, 29 years amortization
  • LTV: 60%

Pari-Passu Mortgage

  • $22.2 Million
  • 240 units
  • Halifax, Nova Scotia
  • CMHC insured first mortgage loan
  • 10 years term, 20 years amortization
  • LTV: 59.7%

Proceeds from this loan will be used to payout the existing First National, CMHC insured first mortgage

  • $7.9 Million
  • 42 units
  • Halifax, Nova Scotia
  • CMHC insured first mortgage loan
  • 5 years term, 35 years amortization
  • LTV:85%

The loan will be used to renovate 24 units over 4 years.

  • $ 7 Million
  • 33 units
  • Victoria, British Columbia
  • Conventional Bridge - A/B structure
  • 2 years term, interest only amortization
  • LTV:74.8%

To finance the acquisition of a residential and commercial portfolio

  • $53.5 Million
  • 435 units
  • London, Ontario

Bridge-to close followed by CMHC loan Bridge:

  • 6 months term, interest only amortization

CMHC loan:

  • 10 years term, 40 years amortization
    LTV: 61.8%"

A CMHC Insured First Mortgage on the subject property

  • $9.9 Million
  • 58 units
  • Bedford, Nova Scotia
  • CMHC financing
  • 5 years term, 30 years amortization
  • LTV: 85%"

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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.

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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. 

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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.

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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.

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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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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.