Standard financing for industrial properties

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.

First National’s standard financing programs are ideally suited for borrowers who are acquiring a new property or refinancing an existing one and want longer-term financing.

Standard financing terms are typically five years (shorter and longer options are available), feature a fixed interest rate and are usually closed to prepayment for the term’s duration.

For industrial assets, this can mean properties that have one or multiple units typically leased to long-term tenants and demonstrate stable cash flow and consistent operating history.

Owner-occupied assets are subject to analysis as is the historic financial performance of the borrower.

Specialized industrial assets can be considered but do introduce financing challenges as it is harder to devise contingency plans and find replacement tenants if required.

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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.

Refinance of an industrial building

$21.6 Million
1 unit
Longueuil, Quebec

Conventional Mortgage
7 years term, 25 years amortization
LTV: 63.28%

Loan proceeds shall repay existing debt with the remaining to be used as an equity takeout to complete capital improvements at the property

$16.5 Million
126,324 sq. ft.
Vancouver, British Columbia

Industrial - Equity Take-out
5 years term, 25 years amortization
LTV: 55.29%

To facilitate the purchase of industrial and industrial/flex properties in the Ottawa area

$85 Million
692,631 sq. ft.
Ottawa, Ontario

Industrial purchase
5 years term, interest only amortization
LTV: 93%

New conventional first mortgage to place term debt on the subject property facilitate the purchase of the property

$37.2 Million
156,865 sq. ft.
Abbotsford, British Columbia

Loan financing first mortgage loan
3 years term, Interest only amortization
LTV: 64.4%

Refinancing existing loan on industrial space with office and showroom

$3 million
18,500 sq ft
Vaughan, Ontario

Conventional refinancing
5 years term, 25 years amortization
LTV: 67%

Loan used to refinance two industrial buildings and to withdraw equity

$12 million
170,890 sq. ft.
Laval, Quebec

Conventional refinance first mortgage
2 years term, 25 years amortization
LTV: 75%

Conventional first mortgage loan used to assist in the purchase of the industrial property

$10 million
65,821 Sq. ft.
Waterloo, Ontario

Conventional First Mortgage
5 years term, 25 years amortization
LTV: 63%

A new conventional first mortgage to recapture the amount spent on the purchase of the property and equity take-out

$3 million
29,032 sq. ft.
Vaughan, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 59%

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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 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

Jeremy Wedgbury’s fall 2024 update and commercial market outlook

As we head into the final two months of 2024, it’s becoming clear that the market is gearing up for better times ahead on the back of four Bank of Canada rate reductions since June including last week’s 50 basis point cut.

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Capital Markets update

Market Commentary: A catch-up and overview of the markets

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View other industrial mortgage solutions

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.

Development / Construction

A First National construction loan provides funds to cover the cost of building or rehabilitating a property with terms typically of three years or less.