First National Financial LP
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Development and construction loans for retail properties

 

A First National construction loan provides funds to cover the cost of building or rehabilitating a retail 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. 

An exit strategy is one of the key considerations for funding. Construction loans are repaid from the proceeds of standard financing or the sale of the asset.

Other critical considerations include the borrower’s experience, net worth and liquidity, as well as the location and quality of the site. 

Please 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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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.

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Smart risk solutions in action for retail

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

CMHC MLI Select mortgage refinancing to repay the construction loan for a newly developed 50-unit apartment.

  • $12.2 M
  • 50 units
  • Truro, NS
  • CMHC insured first mortgage
  • 5 years term, 50 years amortization
  • LTV: 85%

CMHC Market refinance to pay off the construction mortgage on a newly built 117-unit rental building.

  • $34.3 M
  • 117 units
  • Montreal, QC
  • CMHC insured first mortgage
  • 10 years term, 40 years amortization
  • LTV: 69%

Non-recourse first mortgage under CMHC Market to extract equity for improvements to other properties.

  • $10.8M
  • 69 units
  • Dartmouth, NS
  • CMHC insured first mortgage
  • 10 years term, 35 years amortization
  • LTV: 65%

CMHC MLI Select construction loan for developing an 83-unit purpose-built rental apartment.

  • $51.5M
  • 86 units
  • Saugeen Shores (Port Elgin), Ontario
  • CMHC insured first mortgage
  • 5 years term, 50 years amortization
  • LTV: 92%

CMHC MLI Select refinancing to pay off the existing mortgage and extract equity for property upgrades and future investments

  • $51.5 M
  • 116 units
  • London, ON
  • CMHC insured first mortgage
  • 5 years term, 40 years amortization
  • LTV: 85%

Construction mortgage for the development of 116 stacked townhomes

  • $61.8 M
  • 197 units
  • Toronto, ON
  • CMHC insured first mortgage
  • 10 years term, 40 years amortization
  • LTV: 71%

Refinance to pay out of an existing mortgage and a credit facility secured by the borrower's real estate portfolio

  • $3.9 M
  • 25 units
  • Iqaluit, NU
  • CMHC insured first mortgage
  • 10 years term, 40 years amortization
  • LTV: 65.1%

Refinance of an existing mortgage and equity extraction for capital repairs for other rental properties

  • $3.6 M
  • 54 units
  • Ottawa, ON
  • CMHC insured mortgage
  • 10 years term, 40 years amortization
  • LTV: 32%

Latest resources and insights

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

Growth, Value and Risk

Article

Bank of Canada reduces its policy interest rate for the fourth time in 2024
In a decision sure to be cheered by property owners and businesses far and wide, the Bank of Canada today reduced its policy interest rate for the fourth time in 2024.

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Expert insights

First National reports on key CMHC updates to its multi-unit mortgage loan insurance programs
On November 15, 2024, First National was notified of updates to CMHC’s multi-unit insured mortgage programs. All eight updates come into effect immediately.

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Borrower perspectives

Borrower Perspectives: Rob Piroli, President, Piroli Group
Founded in 1992 in Leamington, Ontario, Piroli Group started in general contracting (under the name of Piroli Construction) but has evolved into a multi-faceted development group.

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Capital Markets update

Article

Market Commentary: A catch-up and overview of the markets
First National’s, Jason Ellis, provides an overview as well as an update of the markets including rates, Government announcements and changes to the Commercial mortgages. Read an overview here.

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View other INSERT ASSET mortgage solutions

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 liberate property equity and use it to purchase another asset or renovate/repair an 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.

Subscribe