Development and construction loans for self-storage properties

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.

An exit strategy for the construction loan is one of the key considerations for funding. Construction loans are repaid from the proceeds of standard financing or the sale of the asset.

Other critical considerations include the borrower’s experience, net worth and liquidity, as well as the location and quality of the site and market study.

Providing construction and development financing for a self-storage facility can be challenging; however, it can be considered in the right circumstances.

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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Smart risk solutions in action for storage

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

The loan proceeds were used towards paying off an existing construction mortgage

$14 Million
46 units
Ilderton, ON

CMHC insured mortgage
5 year term, 25 years amortization
LTV: 63.1%

The loan proceeds were applied to repay an existing construction mortgage

$12.3 Million
35 units
Bridgewater, NS

CMHC insured mortgage
5 year term, 50 years amortization
LTV: 95%

CMHC-insured market mortgage used to retire an existing mortgage, with no equity takeout

$19.1 Million
94 units
Mississauga, ON

CMHC insured mortgage
5 years term, 40 years amortization
LTV: 63%

A CMHC-insured MLI Select Pari Passu loan to replace an existing construction mortgage

$24.9 Million
107 units
Kitchener, ON

CMHC insured mortgage
5 years term, 50 years amortization
LTV: 87%

Construction financing to build 5-storey and 6-storey rental apartment buildings, consisting of 195 units

$72.2 Million
195 units
Kelowna, BC

CMHC insured mortgage
10 years term, 50 years amortization
LTV: 90.5%

The purpose of the loan is to pay out an existing first mortgage and provide equity take out for capital improvements

$12.1Million
29 units
Sooke, BC

CMHC insured mortgage
5 year term, 40 years thereafter
LTV: 84.8%

The loan was used to pay off an existing construction mortgage

$91.6 Million
134 units
Toronto, ON

CMHC insured first mortgage
10 years term, 50 years amortization
LTV: 91.1%

CMHC MLI Select refinance that achieved level 3 energy efficiency to payout existing conventional construction mortgage and equity takeout

$128.9 Million
400 units
Montréal, QC

CMHC insured mortgage
10 years term, 50 years amortization
LTV: 72%

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

Bank of Canada opens 2025 with a 25-basis point interest rate cut

The Bank of Canada today reduced its policy interest rate to 3.00%, a 25-basis point drop from 3.25% and announced the official end of quantitative tightening.

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Expert insights

Looking forward: First National’s first take on Canada’s multi-unit property market in 2025

Since the beginning of the year, I have had the opportunity to compare notes with clients, partners and First National advisors across Canada.

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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

The Bank of Canada lowers its benchmark interest rate to 2.75%

This morning, the Bank of Canada reduced its policy interest rate to 2.75%, a 25-basis point drop from January 2025. This move was widely anticipated and supports the Canadian economy at a time of significant geopolitical tensions.

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View other storage 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.

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.

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 or a change in ownership structure or to buy time to complete an operational improvement.

Secondary financing

A First National second mortgage allows borrowers to access the equity in a property and use it to purchase another asset or renovate/repair an existing asset.