Development and construction loans for office properties

A First National construction loan provides funds to cover the cost of building or rehabilitating an office property with terms typically of three years or less.

Borrowers use our construction program to cover land development and building construction costs. Funds can be disbursed on each stage completed, according to a prearranged schedule, or when certain milestones are met.

An exit strategy for the construction loan is one of the key considerations for funding. Construction loans are repaid from the proceeds of standard financing or the sale of the asset.

Other critical considerations include the borrower’s experience, net worth and liquidity, as well as the location and quality of the site.

Speak to one of our empowered advisors to assess options and determine the best course of action for finding and securing a smart-risk mortgage.

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.

Smart risk solutions in action for office

See how we’ve applied our financing products innovatively to help office 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.

View all

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.

View all

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.

View all

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.

View all

View other office mortgage solutions

Standard Financing

First National’s standard financing programs are favoured by borrowers who look to acquire a new property or refinance 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.

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.

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.