KEEPING YOU INFORMED: COVID-19 information for residential customers & commercial borrowers
╲╱

Our residential call centre is experiencing higher than normal wait times.

If you are a residential customer experiencing financial hardship due to COVID-19 and need to request a mortgage payment assistance, please submit a payment assistance request through My Mortgage.

If you are a commercial borrower experiencing financial hardship due to COVID-19, please email our Payments team at commercial.payments@firstnational.ca.

Be assured that we are committed to getting back to all of you who have contacted us.

Your patience is appreciated, and we thank you for your understanding.

Close

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.

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.

Subscribe

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.

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%

Mortgage loan used to refinance apartment building

  • $30 million
  • 184 units
  • Toronto, Ontario
  • CMHC Insured First Mortgage
  • 10 years term, 30 years amortization
  • LTV: 69%

A CMHC Insured First Mortgage loan used to purchase an apartment building

  • $3 million
  • 45 units
  • Fredericton, New Brunswick
  • CMHC Insured First Mortgage
  • 10 years term, 24 years amortization
  • LTV: 65%

Refinancing of an existing mortgage loan and equity take-out

  • $4 million
  • 27 units
  • Montreal, Quebec
  • CMHC Insured First Mortgage
  • 5 years term, 35 years amortization
  • LTV: 75%

A new CMHC insured first mortgage to refinance the property and pay down the existing CMHC mortgage

  • $10 million
  • 129 units
  • Ottawa, Ontario
  • CMHC Financing First Mortgage Loan
  • 5 years term, 25 years amortization
  • LTV: 49%

Refinance the property and to repay current construction bridge loan

  • $9 million
  • 43,329 Sq. ft.
  • Longueuil, Quebec
  • CMHC Insured Refinancing
  • 10 years term, 40 years amortization
  • LTV: 85%

A CMHC insured first mortgage to refinance a twelve story rental apartment building

  • $9 million
  • 112 units
  • Ottawa, Ontario
  • CMHC Financing First Mortgage Loan
  • 5 years term, 25 years amortization
  • LTV: 57%

Refinancing property and repaying existing construction bridge loan

  • $17 million
  • 76 units
  • Sainte Julie, Quebec
  • CMHC Insured Refinancing
  • 10 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

Article
The Bank of Canada made its first interest rate decision of 2021 and presented its latest base-case projections for inflation and growth in the Canadian economy as part of its quarterly Monetary Policy Report.

View all

Expert insights

Article
Jeremy Wedgbury was on a panel at the RealCapital Conference yesterday discussing the growth of alternative lenders. Here are his key takeaways.

View all

Borrower perspectives

Article
In 2018, we spoke to Gord McMehen from Conundrum to get his perspectives on our 30th anniversary. We recently sat down with him to get an update on his business as well as his relationship with First National that is now more than 30 years old.

View all

Capital Markets update

Article
This week's Market Commentary by Neil Silverberg looks at the changes in yield curves this week. Read about it here.

View all

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.

Learn More

Short-term (bridge) Financing

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

Learn More

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.

Learn More

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.

Learn More

Development / Construction

A construction loan helps borrowers manage periodic payments for contract work during the building of a real estate asset.

Learn More
city

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.

SUNPFNWEB06