Student housing

Standard financing

Standard Financing for condo inventory loans typically offers a shorter term, depending upon when the borrower expects to sell the individual units. Floating interest rates typically apply with no amortization requirement.

The sale of individual units is the key consideration for this type of financing.

In most cases, the borrower is expected to contribute 100 per cent of the net sale proceeds from the unit sales. As the borrower sells units, the loan is paid down simultaneously until the point of liquidation. Once the loan is liquidated, the borrower is able to keep the profits from the remaining unit sales.

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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 student housing

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

The loan will be utilized to repay the existing construction

$11 Million
18 Units
Vancouver, British Columbia

CMHC Insured
5 years term, 40 years amortization
LTV: 92.54%

Equity shall be used to facilitate the acquisition

$21 Million
124,662 sq. ft.
Calgary, Alberta

Conventional Mortgage
7 years term, 25 years amortization
LTV: 54.00%

To replace the existing land financing

$3.5 Million
25,619 sq. ft.
Victoria, British Columbia

Conventional Mortgage
1 year term, amortization Interest only
LTV: 43.00%

Refinance with MLI Select

$5.2 Million
25 units
Montreal, Quebec

CMHC Insured
5 years term, 40 years amortization
LTV: 92.54%

Refinance of an industrial building

$21.6 Million
1 unit
Longueuil, Quebec

Conventional Mortgage
7 years term, 25 years amortization
LTV: 63.28%

To facilitate construction financing of a seven-story apartment

$26 Million
198 units
Sainte-Adele, Quebec

CMHC financing
3 years term, amortization Interest only
LTV: 84.90%"

CMHC Insured first mortgage purchase of the property

$1.6 Million
14 units
Montreal, Quebec

CMHC Insured
5 years term, 30 years amortization
LTV: 84.99%

New CMHC insured 1st mortgage to purchase the subject property

$3 Million
35 units
Bath, Ontario

CMHC Insured
5 years term, 35 years amortization
LTV: 81.59%

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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 maintains its benchmark interest rate to 4.50%

The Bank of Canada made its second policy decision of 2023. After eight consecutive increases stretching back to March 2022, the Bank finally held its overnight rate steady at 4.50%.

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Expert insights

A First National business update from Jeremy Wedgbury

Economic headwinds caused by inflation, interest rates and supply chain shortages continue to make for a uniquely challenging environment here in the first week of March 2023.

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Borrower perspectives

Borrower Perspectives: Scott Bearss, Partner and VP Finance - Elevate Development Corporation

We spoke to Scott about his perspectives on how the pandemic has impacted the industry, Elevate’s vision for growth, the company’s priorities heading for 2022/2023 and why he finds First National’s integrity and openness empowering.

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Capital Markets update

Market Commentary: SVB, volatility and rates

An overview of what’s happening in the market from Paul Uffelmann, Director, on our capital markets team.

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View other student housing mortgage solutions

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.

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.

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