Short-term financing for industrial property repositioning and renovation

A First National construction loan provides funds to cover the cost of building or rehabilitating an industrial 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 for the construction loan 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.

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.

Smart risk solutions in action for industrial

See how we’ve applied our financing products innovatively to help industrial 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%

The loan purpose is to refinance an existing construction mortgage.

$12.4 Million
24 units
Campbell River, British Columbia

CMHC insured MLI Select - 100 Points (Energy Efficiency) first mortgage loan
10 year term, 50 years amortization
LTV: 68.47%

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 refinance an existing mortgage and provide equity take out for capital improvements.

$ 5 Million
14 units
Montreal, Quebec

CMHC insured first mortgage loan
5 year term,
50 years amortization
LTV: 80.65%
DSC: 1.37x

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 refinance the property.

$5.1 Million
17,488 sq. ft.
Oakville, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 66%

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Latest resources and insights

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

Growth, Value and Risk

Bank of Canada keeps its benchmark interest rate at 5.0% (for now)

The Bank of Canada kept its policy interest rate at 5.0%, a status-quo decision widely anticipated by the market.

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Expert insights

First National’s Atlantic Canada team pushes for another billion-dollar year

Over the last week, we’ve shared some good news about First National’s growth trajectory including the fact that we’ve just become Canada’s first lender with a $50 billion commercial mortgage portfolio.

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Borrower perspectives

Borrower Perspectives: Clark McDaniel, Williams and McDaniel Property Management

We spoke to Mr. McDaniel about his perspectives on rental housing, the greatest lessons he’s learned and what he values about his relationship with First National.

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Capital Markets update

Market Commentary: Rate and GDP update and US employment numbers

This week’s Market Commentary reviews the Canadian GDP numbers, a look at the evolution of rates for the week and the US employment numbers. Read the commentary here.

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View other industrial 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.

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 complete operational improvements.

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 the equity in a property and use it to purchase another asset or renovate/repair their existing property.