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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.

Refinancing of CMHC insured first mortgage loan

  • $2 million
  • 21 units
  • Montreal, Quebec
  • CMHC refinancing first mortgage
  • 2 years term, 35 years amortization
  • LTV: 85%

Loan to facilitate the payout of an existing first mortgage

  • $8 million
  • 26 units
  • Toronto, Ontario
  • CMHC refinancing first mortgage
  • 5 years term, 40 years amortization
  • LTV: 79%

Refinancing an existing construction loan

  • $42 million
  • 189 units
  • Edmonton, Alberta
  • CMHC refinancing first mortgage
  • 10 years term, 40 years amortization
  • LTV: 93%

Refinance to payout construction lender and repatriate equity

  • $27 million
  • 174 units
  • Edmonton, Alberta
  • CMHC insured first mortgage
  • 15 years term, 40 years amortization
  • LTV: 79%

A CMHC insured first mortgage loan used to pay out the existing debt

  • $22 million
  • 89 units
  • Mississauga, Ontario
  • CMHC insured first mortgage
  • 5 years term, 40 years amortization
  • LTV: 80%

Loan used to pay out the existing financing on property and completing property improvements

  • $1 million
  • 18 units
  • Fredericton, New Brunswick
  • CMHC insured first mortgage
  • 5 years term, 25 years amortization
  • LTV: 85%

Refinancing the existing debt on the property and to provide equity for continuing capital improvements

  • $29 million
  • 227 units
  • Edmonton, Alberta
  • CMHC insure first mortgage
  • 10 years term, 25 years amortization
  • LTV: 58%

Providing funds to pay out the existing financing with additional funds used for re-investment

  • $25 million
  • 97 units
  • Halifax, Nova Scotia
  • CMHC insured first mortgage
  • 10 years term, 30 years amortization
  • LTV: 85%

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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.

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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.

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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
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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.