Bridge financing for student housing properties

First National’s bridge loans are ideal for borrowers who have yet to secure standard financing or who need the time and flexibility to plot a better future for their student housing assets.

Our 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.

Additionally, a bridge loan can be used opportunistically to execute an operational strategy such as negotiating new leases or securing new tenants to position the property more positively for standard financing. This type of short-term financing can be used to provide a borrower with enough time to substantially rehabilitate and stabilize a property with the ultimate goal of positioning it for a First National insured or standard conventional financing.

Consistent cash flows, strong operational history and the borrower’s net worth and liquidity are key considerations for this type of financing.

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Smart risk solutions in action for student housing

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

CMHC MLI Select refinance with 50 basis points for energy efficiency, repaying the First National bridge loan and generating working capital through equity take-out

$25.6 Million
836 units
North Vancouver, BC

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

CMHC MLI Select internal refinance of renovated assets to reinvest capital into ongoing property enhancements

$23.8 Million
143 units
Montreal, QC

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

Portfolio optimization through a CMHC Standard Market refinance, unlocking capital for targeted property improvements

$23 Million
175 units
Halifax, NS

CMHC insured mortgage
10 year term, 40 years amortization
LTV: 58%

Strategic CMHC Standard Market refinance of a fully renovated multi-family asset to fuel future acquisitions

$12.1 Million
58 units
Montreal, QC

CMHC insured mortgage
10 year term, 40 years amortization
LTV: 64%

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%

View all recent financings

Latest resources and insights

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

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View other student housing 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.

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.

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.