A First National construction loan provides funds to cover the cost of building or substantially rehabilitating a multi-family property with terms typically of three years or less.
Borrowers use our construction program to cover land development and building construction costs. Funds can be disbursed on each stage completed, according to a prearranged schedule, or when certain milestones are met.
Various CMHC-insured programs and conventional construction financing options are available for purpose-built multi-family properties as well as retirement housing, mixed-use properties, and student housing.
An exit strategy for the construction loan is one of the key considerations for funding. Conventional construction loans are repaid from standard financing or the sale of the asset. For CMHC construction loans, there is an automatic conversion option
to term financing.
Other critical considerations include the borrower’s experience, net worth and liquidity, as well as the location and quality of the site and market feasibility (especially for CMHC financing).
Speak to one of our empowered advisors to assess options and determine the best course of action for finding and securing a smart-risk mortgage.