Secondary financing for office properties

First National’s second mortgages are smart-risk solutions that enable borrowers to access capital and avoid penalties associated with breaking a first mortgage mid term.

Secondary financing is an attractive alternative to refinancing as it provides access to property equity that can be used to purchase another asset or renovate an existing property. Borrowers with a first mortgage may be eligible for secondary financing on the same property.

Strong operational history, property quality and location, as well as the borrower’s liquidity and net worth are key considerations for this type of financing.

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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.

The loan proceeds were used towards paying off an existing construction mortgage

$14 Million
46 units
Ilderton, ON

CMHC insured mortgage
5 year term, 25 years amortization
LTV: 63.1%

The loan proceeds were applied to repay an existing construction mortgage

$12.3 Million
35 units
Bridgewater, NS

CMHC insured mortgage
5 year term, 50 years amortization
LTV: 95%

CMHC-insured market mortgage used to retire an existing mortgage, with no equity takeout

$19.1 Million
94 units
Mississauga, ON

CMHC insured mortgage
5 years term, 40 years amortization
LTV: 63%

A CMHC-insured MLI Select Pari Passu loan to replace an existing construction mortgage

$24.9 Million
107 units
Kitchener, ON

CMHC insured mortgage
5 years term, 50 years amortization
LTV: 87%

Construction financing to build 5-storey and 6-storey rental apartment buildings, consisting of 195 units

$72.2 Million
195 units
Kelowna, BC

CMHC insured mortgage
10 years term, 50 years amortization
LTV: 90.5%

The purpose of the loan is to pay out an existing first mortgage and provide equity take out for capital improvements

$12.1Million
29 units
Sooke, BC

CMHC insured mortgage
5 year term, 40 years thereafter
LTV: 84.8%

The loan was used to pay off an existing construction mortgage

$91.6 Million
134 units
Toronto, ON

CMHC insured first mortgage
10 years term, 50 years amortization
LTV: 91.1%

CMHC MLI Select refinance that achieved level 3 energy efficiency to payout existing conventional construction mortgage and equity takeout

$128.9 Million
400 units
Montréal, QC

CMHC insured mortgage
10 years term, 50 years amortization
LTV: 72%

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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 holds fast on interest rate policy at April 2025 meeting

Despite significant geopolitical tensions, the Bank of Canada announced today that it is keeping its benchmark interest rate at 2.75%, unchanged from March 2025.

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Expert insights

Commercial financing market update from First National

Although the first quarter is not over, we have already seen the imposition, relaxation, and re-imposition of retaliatory cross border tariffs and two Bank of Canada interest rate reductions to shore up the economy.

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Project spotlight

Ahead of the market and ahead of schedule: How Livwell and Stubbe’s is helping fast track multi-unit housing in Niagara Falls

It is no secret that we are in housing crisis in Ontario. Despite a very active and motivated industry, we can’t get new homes built fast enough to meet our growing population and changing demographics, for a variety of compounding reasons.

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Capital Markets update

Market Commentary: Tariff on, Tariff off

It has been a while since my last update so let’s start with a look at what’s been happening with interest rates over the last year.

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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.

Construction financing

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