First National Financial LP
seniors-housing

Development and construction loans for retirement housing

 

A First National construction loan, conventional or insured, provides funds to cover the cost of building or substantially rehabilitating a 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. 

CMHC-insured and conventional construction financing is available for retirement residences as well as purpose-built multi-family properties, mixed-use properties, and student housing.

An exit strategy is one of the key considerations for funding. Conventional construction loans are repaid from the proceeds of standard financing or the sale of the asset. For CMHC construction loans, there is an automatic conversion option to term financing.

Other critical considerations include the borrower’s experience, net worth and liquidity, as well as the location and quality of the site and market feasibility (especially for CMHC financing).

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 seniors

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

Article
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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Borrower perspectives

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
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 seniors mortgage solutions

CMHC financing

As a CMHC-approved lender, we are experts in securing insured financing that offers lower interest rates and longer amortizations. An insured mortgage enables borrowers to manage cash flow more effectively and realize higher investment returns.

Learn More: CMHC financing

Standard financing

First National’s standard financing programs are favoured by borrowers who are 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

Short-term (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 buying time to complete an operational improvement. 

Learn More: Short-term (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 a borrower to access the equity in a property and use it to purchase another asset or renovate/repair a property in their existing portfolio. 

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.