Properties with stable cash flow and consistent operating histories are favourable candidates for standard financing. For retirement assets, this can mean properties with consistent occupancy and a history of stabilized operations. The borrower’s experience as an operator is also a critical loan consideration. If there is an ownership group, management guarantees and competencies are required.

Standard financing offers a term of five years or more, a fixed interest rate and is typically closed to prepayment for the term’s duration. For seniors properties, the two most common types of standard financing are Canada Mortgage Housing Corporation insured (CMHC) and conventional.

CMHC-insured financing

CMHC-insured financing offers lower interest rates, terms of 5 years or more and higher loan to value ratios, making it a popular choice for most borrowers. There are also programs available to borrowers (i.e. the Energy Efficiency Program) that can help them increase their loan amounts, access premium credits and lower their monthly expenses.  

First National is Canada’s largest CMHC-insured lender.

Standard financing is usually considered when borrowers want the payment predictability that comes with a fixed interest rate. However, it is important to note that a typical conventional financing term for a retirement asset is five years. Longer terms are available, but there is often greater scrutiny on future cash flows. Borrowers must be able to show that longer-term leases (i.e. maturing in 10 years or more) are in place for the duration of the mortgage term.

Commercial Mortgage Backed Securities (CMBS): CMBS is a conventional financing solution available for first mortgages on established, stabilized properties (generally three or more years of stable operating history). This type of financing works well for properties with in-place, stabilized net cash flow.

Connect with a financing expert

Brian Kimmel
Assistant Vice President, Commercial Financing

Henry Chung
Director, Commercial Financing

Benoit Allaire
Director, Commercial Financing

Andrew Drexler
Assistant Vice President, Commercial Financing

Daniel Bragagnolo
Director, Commercial Financing

Lina Angelini
Senior Analyst, Commercial Mortgages

Reed Bracken
Business Development Manager, Commercial Financing

Evan Pawliuk
Director, Commercial Financing

Michael Yeung
Regional Vice President, Commercial Financing, British Columbia

Barry C. Gidney
Assistant Vice President, Commercial Financing

Yohan Kadoch
Director, Commercial Financing

Scott Lynds
Assistant Vice President, Commercial Financing

Damir Jesic
Director, Commercial Financing

Robert Fleet
Assistant Vice President, Commercial Financing

Abby McQuire
Director, Commercial Financing

Dru McAuley
Assistant Vice President, Commercial Financing

Simon Verdy
Assistant Vice President, Commercial Financing

Michele Cook
Director, Commercial Financing

Miyadh Mutahar
Analyst, Commercial Mortgages

Lori Isaac
Senior Analyst, Commercial Financing

Russell B. Syme
Assistant Vice President, Commercial Financing

Stefan Steele
Senior Analyst, Credit Adjudication

Troy Barker
Assistant Vice President, Commercial Financing

Mitchell Tomulka
Assistant Vice President, Commercial Financing

Jody Comeau
Assistant Vice President, Commercial Financing

Ilan Barda
Assistant Vice President, Commercial Financing

Edgar Kieser
Assistant Vice President, Commercial Financing

Tim Kennedy
Assistant Vice President, Commercial Financing

Peter Cook
Assistant Vice President, Commercial Financing

Jim Foote
Assistant Vice President, Commercial Financing

Alison Afaganis
Senior Analyst, Commercial Mortgages

Adam Powadiuk
Director, Commercial Financing

Jonathan Philipps
Director, Commercial Financing

Paul Steckler
Assistant Vice President, Commercial Financing

Pierre Leroux
Assistant Vice President, Commercial Financing

Veronique Clermont
Bilingual Analyst, Commercial Mortgages

Darryl Bellwood
Assistant Vice President, Commercial Financing

Jamie McCallum
Assistant Vice President, Commercial Financing

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Financing resources

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