Secondary financing for mixed-use properties

First National’s second mortgages are smart-risk solutions that enable borrowers to access capital and avoid penalties associated with breaking a first mortgage mid term.

Secondary financing is an attractive alternative to refinancing as it provides access to property equity that can be used to purchase another asset or renovate/repair an existing property. Borrowers with a first mortgage may be eligible for secondary financing on the same property.

A strong operational history, property quality and location, as well as the borrower’s liquidity and net worth are key considerations for this type of financing.

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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.

Internal refinance of a 4-storey, 42-unit property to provide equity takeout.

$3.7 Million
42 units
Montreal, Quebec

CMHC insured first mortgage
5 years term, 40 years amortization
LTV: 73%

Refinance of a construction loan for a 4-storey, 180-unit retirement home.

$51 Million
180 units
Calgary, Alberta

CMHC insured first mortgage
10 years term, 35 years amortization
LTV: 82%

Construction loan takeout of a 9-storey, 101-unit property.

$24.5 Million
101 units
London, Ontario

CMHC insured first mortgage
10 years term, 50 years amortization
LTV: 79%

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%

Refinancing a four-storey, 24-unit property to payout existing mortgage and equity extraction.

$4.3 Million
24 units
Longueuil, Quebec

CMHC insured first mortgage
5 years term, 40 years amortization
LTV: 64%

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%

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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 benchmark interest rate to 4.50%

After the Bank of Canada reduced its policy interest rate in June – making Canada the first G7 country to do so – the Bank was at it again today.

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Expert insights

A mid-year update from Scott Mizzen

On June 5th, Canada became the first G7 nation to reduce interest rates and followed that precedent-setting move with another 25-basis point decline on July 24th.

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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

Market Commentary: An overview of this week’s federal budget

Jason Ellis provides an overview of this week’s federal budget, rates, the housing market and more. Read the commentary here.

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View other mixed-use mortgage solutions

CMHC Financing

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

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.

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.