As we prepare for the seventh week of what the International Monetary Fund is now calling the Great Lockdown, I’m pleased to report that First National remains open for business and with a good amount of liquidity to serve your borrowing needs.
Although it is hardly business as usual in the capital markets from which funding flows, and liquidity is a significant issue across the financial system, we have a strong tool kit of insured and conventional products to get you through this crisis and beyond. More specifically, we have insured mortgages for 1-year, 2-year, 3-year terms and the normal 5 year program. Some of these shorter terms can be very useful for loans that are maturing in the next couple of months. On 10-year terms, we are actively closing our committed pipeline, which stands at over $1 billion, and once that process is complete, we will return with new 10-year programs.
In addition, we are committing to CMHC insured construction loans at a current run-rate of several hundred million dollars per quarter. This makes First National a reliable and ongoing source of liquidity for much-needed multifamily property development across the country.
Bridge financing is also available to help withstand what we all hope will be a temporary disruption and to buy time for the arrival of more term products later in the year. All told, I believe First National has as much – if not more liquidity – than any lender in Canada.
Going forward, we will use all liquidity options available to us including the CMB program and the reconstituted $150 billion IMPP to enhance our funding options for you.
All-in mortgage rates are very attractive. So that you can borrow with confidence in taking advantage of these rates, our hedging program – early Rate Lock – remains available 30-days prior to funding.
Ready to help
Beyond liquidity options, we continue to believe the most valuable service we have to offer is advice. These are difficult times for everyone, making it more important than ever to stay connected to market conditions and plot financing strategies that will work for you now and over the long run.
Many of our clients have asked us to join in their strategic planning discussions. Should you wish to do the same, every member of our team – including our treasury department – stands ready to participate. As noted previously, should you face a significant short-term cashflow disruption, we have established a payments team comprised of experienced underwriters who are available to work with you. We look forward to continuing to serve you during this difficult time.