Development and construction loans for student housing properties

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

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.

CMHC-insured and conventional construction financings are available for student housing properties, as well as retirement housing, mixed-use properties and multi-family properties.

An exit strategy for the construction loan is one of the key considerations for funding. Construction loans are repaid from 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 feasibility (especially for CMHC financing).

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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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: A catch-up and overview of the markets

First National’s, Jason Ellis, provides an overview as well as an update of the markets including rate, Government announcements and changes to the Commercial mortgages. Read an overview here.

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View other student housing mortgage solutions

CMHC financing

As a deeply experienced CMHC-approved lender, we are experts in securing insured financing that offers lower interest rates and longer amortizations. An insured mortgage enables borrowers to manage cash flow more effectively and realize higher investment returns.

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, 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.