First National Financial LP
seniors-housing

Seniors housing

Standard financing

Properties with stable cash flow and consistent operating histories are favourable candidates for standard financing. For retirement assets, this can mean properties with consistent occupancy and a history of stabilized operations. The borrower’s experience as an operator is also a critical loan consideration. If there is an ownership group, management guarantees and competencies are required.

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 seniors properties, the two most common types of standard financing are Canada Mortgage Housing Corporation insured (CMHC) 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 a 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.

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 a retirement 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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Smart risk solutions in action for seniors

See how we’ve applied our financing products innovatively to help seniors borrowers achieve their goals with performance and value.

Loan used to repatriate additional equity from the current property

  • $7 million
  • 283 units
  • Sainte-Marie, Quebec
  • CMHC Insured Pari Passu First Mortgage
  • 5 years term, 27 years amortization
  • LTV: 41%

Refinancing the current loan and the existing line of credit on the property

  • $46 million
  • 236 units
  • St-Bruno-de-Montarville, Quebec
  • CMHC insured first mortgage
  • 10 years term, 35 years amortization
  • LTV: 84%

Providing a CMHC mortgage loan to finance the purchase of the property

  • $20 million
  • 238 units
  • Trois-Rivières, Quebec
  • CMHC insured first mortgage loan
  • 10 years term, 35 years amortization
  • LTV: 85%

Financing the buyout of the current partner

  • $20 million
  • 167 units
  • Greely, Ontario
  • Conventional first mortgage
  • 3 years term, 25 years amortization
  • LTV: 70%

Paying out existing construction loan and provide additional cost for the development of the retirement residence

  • $15 million
  • 77 units
  • Nanaimo, British Columbia
  • Conventional first construction mortgage
  • 2 years term, interest only amortization
  • LTV: 54%

Obtaining a new CMHC mortgage to replace a construction mortgage

  • $48 million
  • 102 units
  • Uxbridge, Ontario
  • CMHC insured first mortgage loan
  • 10 years term, 25 years amortization
  • LTV: 85%

Take assignment of an existing CMHC insured first mortgage

  • $12 million
  • 194 units
  • Saguenay, Quebec
  • CMHC Insured First Mortgage
  • 5 years terms, 15 years amortization
  • LTV: 43%

Refinancing the property’s existing debt and providing liquidity for future real estate developments

  • $37 million
  • 291 units
  • Longueuil, Quebec
  • CMHC Insured Refinance First Mortgage Loan
  • 5 years term, 35 years amortization
  • LTV: 85%

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View other seniors mortgage solutions

Short-term (bridge) financing

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

Learn More

Repositioning / Renovating

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

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

Construction financing is available for condominiums, retail, office, industrial, retirement and purpose-built apartments. 

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.