CMHC financing for mixed-use properties

First National’s insured financing programs are ideal for borrowers when they acquire a new mixed-used property or refinance.

Mortgage loan insurance allows borrowers to purchase or refinance mixed-use properties with favourable features such as various loan terms, higher loan-to-value ratios, and longer amortizations. These advantages enable borrowers to maximize loan proceeds, manage cash flow more effectively and realize higher investment returns.

We also provide full support and expertise to borrowers seeking CMHC construction loans. [link to that page]

However, there are only certain scenarios where CMHC financing applies. CMHC considers mixed-used properties if the non-residential component is less than 25 percent of the floor space and non-residential revenue is less than 25 percent of the total gross.

In cases where a mixed-use property does not qualify for an insured mortgage, a First National standard conventional financing is an excellent alternative for borrowers who want different options.

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, insured or conventional.

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Smart risk solutions in action for mixed-use

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

Refinance of a 6-plex to recoup construction costs.

$1.3 Million
6 units
Edmonton, Alberta

CMHC insured first mortgage
10 year term, 50 years thereafter
LTV: 95%

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 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

Provide financing for the property to complete the construction.

$27.2 Million
95 units
Montreal, Quebec

Insured 1st mortgage
24 months term for construction, 5/10 thereafter, Interest only amortization during construction, 40 years thereafter
LTV: 93.79%"

Refinance with MLI Select

$5.2 Million
25 units
Montreal, Quebec

CMHC Insured
5 years term, 40 years amortization
LTV: 92.54%

Used to pay out the conventional construction financing from First National Financial LP with additional proceeds used towards the purchase and construction of multi-family developments

$10.3 Million
40 units
Halifax, Nova Scotia

CMHC insured first mortgage loan
10 years term, 40 years amortization
LTV: 84.2%

Refinance the existing debt registered against the property with a CMHC insured first mortgage

$2 Million
6/12 units
Iqualit, Nunavut

CMHC first mortgage loan
10 years term, 25 years amortization
LTV: 75%

Loan used to facilitate the purchase of a mixed-use property

$25 million
1,445,000 sq. ft.
Mississauga, Ontario

First mortgage land financing
36 months term
LTV: 64%

View all recent financings

Latest resources and insights

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

Growth, Value and Risk

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View other mixed-use mortgage solutions

Standard Financing

First National’s standard financing programs are favoured by borrowers who look to acquire a new property or refinance 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 typically 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.

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 an existing property.

Construction financing

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