Financing of property repositioning and renovation for retirement housing

First National regularly assists borrowers who are ready to enhance the value of their properties through capital improvements.

This short-term financing option, usually two years or less, enables access to a property’s equity to fund capital improvements or repairs and eliminates the need to raise funds from personal sources or less flexible, higher-cost alternatives. The goal is usually to increase rents and/or reduce operating expenses to increase the value of the property and make it eligible for standard financing.

The borrower’s expertise, net worth, and liquidity, as well as property location and quality are key considerations for this type of financing.

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Smart risk solutions in action for seniors

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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

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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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Capital Markets update

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

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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.

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.

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.

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.

Development / Construction

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