condo-inventory

Student housing

Short-term (bridge) financing

Bridge financing addresses a borrower’s short-term needs, usually three months to three years. Some borrowers choose bridge financing when they need flexibility to decide about the future of an asset (i.e. contemplating a sale, impending change in ownership structure or operational planning) or time to coordinate a standard financing option.

For alternative assets, short-term financing may be a strategic solution if many of the property’s leases are approaching maturity.

The flexibility enables the borrower to negotiate new leases or acquire new tenants, ultimately positioning the property more positively for standard financing.

Bridge financing typically includes floating interest rates and usually allows some form of early prepayment. Consistent cash flows and strong operational histories are key considerations for this type of financing.

Sign up for Market updates

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.

Subscribe

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.

Financing the buyout of the current partner

  • $20 million
  • 167 units
  • Greely, Ontario
  • Conventional first mortgage
  • 3 years term, 25 years amortization
  • LTV: 70%

CMHC insured first mortgage loan used to purchase multi-residential building

  • $2 million
  • 26 units
  • Quebec City, Quebec
  • CMHC insured first mortgage
  • 5 years term, 35 years amortization
  • LTV: 82%

Withdrawing equity on the property for other real estate investments

  • $8 million
  • 65 units
  • Coquitlam, British Columbia
  • CMHC insured first mortgage
  • 5 years term, 25 years amortization
  • LTV: 58%

Loan used for the acquisition of rental townhomes

  • $7 million
  • 32 units
  • Oshawa, Ontario
  • CMHC insured first mortgage loan
  • 5 years term, 25 years amortization
  • LTV: 74%

Paying out existing construction loan and provide additional cost for the development of the retirement residence

  • $15 million
  • 77 units
  • Nanaimo, British Columbia
  • Conventional first construction mortgage
  • 2 years term, interest only amortization
  • LTV: 54%

Loan used to liberate equity for real estate investment

  • $3 million
  • 24 units
  • Halifax, Nova Scotia
  • CMHC Insured First Mortgage
  • 5 years term, 30 years amortization
  • LTV: 85%

Obtaining a new CMHC mortgage to replace a construction mortgage

  • $48 million
  • 102 units
  • Uxbridge, Ontario
  • CMHC insured first mortgage loan
  • 10 years term, 25 years amortization
  • LTV: 85%

Providing funds to refinance property and provide equity for future acquisitions

  • $9 million
  • 35 units
  • Vancouver, British Columbia
  • CMHC insured first mortgage
  • 10 years term, 30 years amortization
  • LTV: 68%

Latest resources and insights

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

Growth, Value and Risk

Article
The BoC made some encouraging statements about the state of the economy. Here is a summary.

View all

Expert insights

Article
Property owners and developers gathered virtually on April 15, 2021 for the Vancouver Real Estate Forum in part to hear expert commentary during the Construction & Debt Financing breakout session.

View all

Borrower perspectives

Article
Tavish Rai, Abstract’s Chief Asset Officer and Partner, shares his perspectives about Victoria’s current evolution, Abstract’s shift in focus back to market housing and why First National’s industry knowledge and responsiveness are so valuable.

View all

Capital Markets update

Article
There are two important days next week. In this week’s Market Commentary, Neil Silverberg, Senior Analyst, Capital Markets reviews what you should know for both the BoC announcement and the federal budget.

View all

View other student housing solutions

Standard financing

Standard financing offers a term of five years or more, a fixed interest rate and is typically closed to prepayment for the term’s duration.

Learn More

Repositioning / Renovating

This short-term financing option enables access to a property’s equity for improvements, renovations or repairs, eliminating the need to raise funds from personal sources.

Learn More

Secondary financing

Second mortgages are often used to access equity in a property when a borrower wants to purchase another asset or renovate/repair a property.

Learn More

Development / Construction

Construction financing is available for condominiums, retail, office, industrial, retirement and purpose-built apartments. 

Learn More
city

Sign up for Market updates

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.

SUNPFNWEB06