Office

Standard Financing

Properties with stable cash flow and consistent operating histories are favourable candidates for standard financing. For office assets, this can mean properties that are fully or nearly fully leased, have a majority of tenants on long-term leases and can display a consistent history of strong tenancy.

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.

Standard financing is usually considered when borrowers want the payment predictability that comes with a fixed interest rate. However, it is important to note that a typical conventional financing term for an office asset is five years. Longer terms are available, but there is often greater scrutiny on future cash flows. Borrowers must be able to show that longer-term leases (i.e. maturing in 10 years or more) are in place for the duration of the mortgage term.

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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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.

Equity shall be used to facilitate the acquisition

$21 Million
124,662 sq. ft.
Calgary, Alberta

Conventional Mortgage
7 years term, 25 years amortization
LTV: 54.00%

Refinance a first and second mortgage

$94 Million
176,624 sq. ft.
Vancouver, British Columbia

Bridge loan/construction takeout financing
2 years term, interest only amortization
LTV: 52.7%

To refinance existing debt on the subject property and to provide equity for capital improvements at the subject property

$4 Million
30,181 sq. ft.
London, Ontario

Conventional loan financing proposal
5 years term, 25 years amortization
LTV: 69%

Construction financing for an eight level office building

$75 million
137,800 sq. ft.
Vancouver, British Columbia

Conventional first construction mortgage
3 terms years, interest only amortization
LTV: 48%

Provide acquisition financing for office building for purchase

$7 million
27,911 sq. ft.
Bolton, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 67%

Provide a 5 year term loan for refinancing and recuperating equity invested in CAPEX

$4 million
14,939 sq. ft.
Montreal, Quebec

Conventional first mortgage
5 years term, 25 years amortization
LTV: 72%

Providing funds required to refinance the current loan and provide funds for future capital expenditures

$4 million
198,093 sq. ft.
Windsor, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 48%

Facilitating the purchase of the property contracted for sale

$4 million
15,110 Sq. ft.
Toronto, Ontario

First mortgage loan
5 years term, 25 years amortization
LTV: 57%

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Latest resources and insights

Original perspectives and personal viewpoints on developments and industry trends in commercial real estate.

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View other office mortgage solutions

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.

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.

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