Bridge financing for multi-family properties

First National’s bridge loans are ideal for borrowers who have yet to secure standard financing or who need the time and flexibility to plot a better future for their multi-family property assets.

Our bridge loan terms typically range from three months to three years, include floating interest rates and allow some form of early prepayment.

Borrowers choose our bridge loans until standard financing is secured or while they contemplate a property sale or plan a change in ownership structure.

Additionally, a bridge loan can be used opportunistically to execute an operational strategy such as renovating the units and renting them to new tenants at higher rents to position the property more positively for standard financing. This type of short-term financing can be used to provide a borrower with enough time to substantially rehabilitate and stabilize a property with the ultimate goal of positioning it for First National insured or conventional financing.

Consistent cash flows, strong operational history, and the borrower’s net worth and liquidity are key considerations for this type of financing.

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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 proceeds were used towards paying off an existing construction mortgage

$14 Million
46 units
Ilderton, ON

CMHC insured mortgage
5 year term, 25 years amortization
LTV: 63.1%

The loan proceeds were applied to repay an existing construction mortgage

$12.3 Million
35 units
Bridgewater, NS

CMHC insured mortgage
5 year term, 50 years amortization
LTV: 95%

CMHC-insured market mortgage used to retire an existing mortgage, with no equity takeout

$19.1 Million
94 units
Mississauga, ON

CMHC insured mortgage
5 years term, 40 years amortization
LTV: 63%

A CMHC-insured MLI Select Pari Passu loan to replace an existing construction mortgage

$24.9 Million
107 units
Kitchener, ON

CMHC insured mortgage
5 years term, 50 years amortization
LTV: 87%

Construction financing to build 5-storey and 6-storey rental apartment buildings, consisting of 195 units

$72.2 Million
195 units
Kelowna, BC

CMHC insured mortgage
10 years term, 50 years amortization
LTV: 90.5%

The purpose of the loan is to pay out an existing first mortgage and provide equity take out for capital improvements

$12.1Million
29 units
Sooke, BC

CMHC insured mortgage
5 year term, 40 years thereafter
LTV: 84.8%

The loan was used to pay off an existing construction mortgage

$91.6 Million
134 units
Toronto, ON

CMHC insured first mortgage
10 years term, 50 years amortization
LTV: 91.1%

CMHC MLI Select refinance that achieved level 3 energy efficiency to payout existing conventional construction mortgage and equity takeout

$128.9 Million
400 units
Montréal, QC

CMHC insured mortgage
10 years term, 50 years amortization
LTV: 72%

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Latest resources and insights

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

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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.

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.

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 multi-family property with terms typically of three years or less.