Financing for student housing property repositioning and renovation

First National regularly assists borrowers who are ready to enhance the value of their student housing assets through capital improvements.

This short-term financing option, usually two years or less, provides access to a property’s equity for capital improvements or repairs by eliminating the need to raise funds from personal sources. The goal is usually to increase lease rates and/or reduce operating expenses to increase the value of the property and make it eligible for standard financing.

The borrower’s expertise, net worth, and liquidity, as well as property location and quality are key considerations for this type of financing.

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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%

The loan proceeds were applied to repay an existing construction mortgage

$12.3 Million
35 units
Bridgewater, NS

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

CMHC-insured market mortgage used to retire an existing mortgage, with no equity takeout

$19.1 Million
94 units
Mississauga, ON

CMHC insured mortgage
5 years term, 40 years amortization
LTV: 63%

A CMHC-insured MLI Select Pari Passu loan to replace an existing construction mortgage

$24.9 Million
107 units
Kitchener, ON

CMHC insured mortgage
5 years term, 50 years amortization
LTV: 87%

Construction financing to build 5-storey and 6-storey rental apartment buildings, consisting of 195 units

$72.2 Million
195 units
Kelowna, BC

CMHC insured mortgage
10 years term, 50 years amortization
LTV: 90.5%

The purpose of the loan is to pay out an existing first mortgage and provide equity take out for capital improvements

$12.1Million
29 units
Sooke, BC

CMHC insured mortgage
5 year term, 40 years thereafter
LTV: 84.8%

The loan was used to pay off an existing construction mortgage

$91.6 Million
134 units
Toronto, ON

CMHC insured first mortgage
10 years term, 50 years amortization
LTV: 91.1%

CMHC MLI Select refinance that achieved level 3 energy efficiency to payout existing conventional construction mortgage and equity takeout

$128.9 Million
400 units
Montréal, QC

CMHC insured mortgage
10 years term, 50 years amortization
LTV: 72%

View all recent financings

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

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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.

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, whether CMHC insured or conventional, provides funds to cover the cost of building or rehabilitating a student housing property with terms typically of three years or less.