Development and construction loans for self-storage properties

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 and market study.

Providing construction and development financing for a self-storage facility can be challenging; however, it can be considered in the right circumstances.

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.

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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 storage

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

CMHC insured financing for an acquisition of a newly constructed 90 townhouse project

$25.3 Million
90 units
Edmonton, AB

CMHC insured mortgage
10 year term, 40 year amortization
LTV: 85%

Refinance of unencumbered property containing 308 units, to be used for capital repairs

$40 Million
320 units
Toronto, ON

CMHC insured mortgage
10 year term, 25 years amortization
LTV: 49%

Senior Retirement residence with 109 units - CMHC insured mortgage to convert construction facility to term loan

$32.5 Million
109 units
Georgetown, ON

CMHC insured mortgage
10 years term, 40 years amortization
LTV: 79.5%

Completion take out of 4 storey podium level of 25 storey tower

$28.7 Million
77 units
Coquitlam, BC

CMHC insured mortgage
5 years term, 45 years amortization
LTV: 83.73%

Refinance of 144 rental units to provide funds for capital expenditures across borrowers existing portfolio as well as future acquisitions

$31.9 Million
144 units
Calgary, AB

CMHC insured mortgage
10 years term, 40 years amortization
LTV: 70%

Refinance of free and clear property to provide equity for capital expenditures across borrowers portfolio and acquisition of other properties

$63.8 Million
346 units
Toronto, ON

CMHC insured mortgage
10 year term, 30 years amortization
LTV: 95%

Construction take out of purpose built apartment building achieving Energy Efficiency through MLI Select Program

$61.4 million
163 units
Mirabel, QC

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

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%

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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

A Return to Real Estate 101 — Resetting Expectations For Multifamily Housing

The real estate market is dramatically different now than what we have seen over the last 15 years. The condo markets in Toronto and Vancouver that performed incredibly well have slowed dramatically with thousands of unsold units now flooding the market.

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Project spotlight

First National worked with Hazelview Investments to secure one of the largest CMHC-insured loans, helping bring a new approach to apartment living in Toronto to life

Hazelview Investments has secured one of the largest CMHC-insured loans ever issued under the MLI Select program. Financing for this construction loan was provided by First National Financial LP.

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Capital Markets update

Did Canada’s economy and housing market rely too heavily on immigration, and what are the risks ahead?

Between 2014 and 2023, Canada admitted about 2.98 million new permanent residents and issued roughly 4.4 million new study and work permits, according to Immigration, Refugees and Citizenship Canada administrative data.

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View other storage 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.

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.

Bridge financing

First National’s bridge loan terms typically 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 or a change in ownership structure or to buy time to complete an operational improvement.

Secondary financing

A First National second mortgage allows borrowers to access the equity in a property and use it to purchase another asset or renovate/repair an existing asset.