Secondary financing for self-storage properties

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/repair an existing property.

Strong operational history, property quality and location, as well as the borrower’s expertise as an operator and net worth are key considerations for this type of financing. That said, secondary financing is not common but 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.

Refinance to pay out of an existing mortgage and a credit facility secured by the borrower's real estate portfolio

$3.9 M
25 units
Iqaluit, NU

CMHC insured first mortgage
10 years term, 40 years amortization
LTV: 65.1%

Refinance of an existing mortgage and equity extraction for capital repairs for other rental properties

$3.6 M
54 units
Ottawa, ON

CMHC insured mortgage
10 years term, 40 years amortization
LTV: 32%

Refinance of an existing debt and equity withdrawal for capital improvements

$5.6 M
16 units
Montreal, QC

CMHC insured mortgage
5 year term, 50 years amortization
LTV: 92.1%

Refinance to pay out an existing debt and equity takeout for future capital improvements

$1.6 M
5 units
Toronto, ON

CMHC insured mortgage
5 year term, 40 years amortization
LTV: 65%

A new CMHC-insured mortgage to pay out the construction loan used to build the property

$5 M
10 units
Ottawa, Ontario

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

Refinance with a cash injection to pay out an existing mortgage with another lender

$2.3 M
6 units
Toronto, ON

CMHC insured mortgage
5 year term, 40 years amortization
LTV: 84.7%

Acquisition of two identical properties comprising a total of 32 units

$5.6 M
32 units
Boisbriand, QC

CMHC insured mortgage
5 years term, 50 years amortization
LTV: 83.07%

Refinance of an existing mortgage to access equity from the property for capital improvements of the borrower's other properties

$2.4 M
35 units
Clarenville, NL

CMHC insured mortgage
5 years term, 30 years amortization
LTV: 73.3%

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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 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.

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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.

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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.

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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.

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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.

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.

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.

Development / Construction

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.