First National Financial LP
apartment

Construction financing

 

A First National construction loan, whether CMHC insured or conventional, provides funds to cover the cost of building or rehabilitating a multi-family property with terms typically of three years or less.

 

 

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. 

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Smart risk solutions in action for multi-family

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

The loan purpose is to refinance an existing mortgage and provide equity take out for capital improvements and construct a new multi-family property.

  • $3.5 Million
  • 12 units
  • Montreal, Quebec
• CMHC insured first mortgage loan
• 5 year term, 50 years amortization
• LTV: 63.59%

Purpose of the loan is to refinance an existing construction mortgage.

  • $1.6 Million
  • 8 units
  • Edmonton, Alberta
• CMHC insured first mortgage loan
• 10 year term, 50 years amortization
• LTV: 82.38%

To refinance an existing construction mortgage.

  • $15.4 Million
  • 60 units
  • Halifax, Nova Scotia
  • CMHC insured first mortgage loan
  • 10 year term, 50 years amortization
  • LTV: 87%

To refinance an existing mortgage and pay down another existing credit facility secured by multiple assets.

  • $7.4 Million
  • 30 units
  • Iqualit, Nunavut
  • CMHC first mortgage loan
  • 5 year term,
  • 40 years amortization
  • LTV: 75%
  • DSC: 1.91x

To provide financing to purchase a low-rise multi-family building.

  • $10.4 Million
  • 96 units
  • Miramichi, New Brunswick
  • CMHC insured first mortgage loan
  • 5 year term,
  • 40 years amortization
  • LTV: 95%
  • DSC: 1.10x

To provide construction financing for the development of the multiresidential building.

  • $31 Million
  • 104 units
  • Winnipeg, Manitoba
  • CMHC insured construction to term financing
  • 24 months term for construction/lease period, 10 years thereafter
  • Interest only amortization, 25 years thereafter
  • LTV: 65%

Refinance under the Market Program

  • $6.5 Million
  • 71 units
  • Edmonton, Alberta
  • CMHC insured first mortgage
  • 5 year term, 35 years amortization
  • LTV: 64.88%

The borrower is refinancing a conventional bridge loan used to purchase the subject property.

  • $27.6 Million
  • 138 units
  • Waterloo, Ontario
  • CMHC insured first mortgage
  • 10 years term, 40 years amortization
  • LTV: 64.60%

Latest resources and insights

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

Growth, Value and Risk

This week, CMHC advised the market of several important policy updates and refinements designed to support multi-unit housing development across Canada.

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The first quarter of 2024 was the most active opening period in First National’s history as a commercial lender.

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Capital Markets update

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Jason Ellis provides an overview of this week’s federal budget, rates, the housing market and more. Read the commentary here.

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View other multi-family mortgage solutions

CMHC financing

As Canada’s largest CMHC-approved apartment lender, we are experts in securing insured financing that offers lower interest rates, higher loan-to-value ratios, and longer amortizations. An insured mortgage enables borrowers to manage cash flow more effectively and realize higher investment returns.

Learn More: CMHC financing

Standard Financing

First National’s standard financing programs are favoured by borrowers when acquiring a new property or refinancing 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. 

Learn More: Standard Financing

Bridge financing

First National’s bridge loan terms usually 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. 

Learn More: Bridge financing

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.

Learn More: Asset repositioning

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.

Learn More: Secondary financing
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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.