Secondary financing for student housing 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 an existing property.

Secondary financing of student housing is not common but 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.

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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To refinance the property.

$5.1 Million
17,488 sq. ft.
Oakville, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 66%

To provide construction financing for the development of the multiresidential building.

$31 Million
104 units
Winnipeg, Manitoba

CMHC insured construction to term financing
24 months term for construction/lease period, 10 years thereafter
Interest only amortization, 25 years thereafter
LTV: 65%

Refinance under the Market Program

$6.5 Million
71 units
Edmonton, Alberta

CMHC insured first mortgage
5 year term, 35 years amortization
LTV: 64.88%

Funds to be used for capital repairs as well as future acquisitions and new construction of rental properties.

$46 Million
135 units
Port Coquitlam, British Columbia

CMHC insured first mortgage
10 year term, 25 years amortization
LTV: 84.30%

The borrower is refinancing a conventional bridge loan used to purchase the subject property.

$27.6 Million
138 units
Waterloo, Ontario

CMHC insured first mortgage
10 years term, 40 years amortization
LTV: 64.60%

Provide financing for the property to complete the construction.

$27.2 Million
95 units
Montreal, Quebec

Insured 1st mortgage
24 months term for construction, 5/10 thereafter, Interest only amortization during construction, 40 years thereafter
LTV: 93.79%"

To replace the existing land financing with VanCity and to repatriate equity to cover pre-development costs leading up to construction financing.

$2.2 Million
87 units
Victoria, British Columbia

Pre-development financing
1 year term, interest only amortization
LTV: 50%"

This is an active developer / investor in the Halifax market who will use the equity towards their next development or acquisition.

$13 Million
41 units
Dartmouth, Nova Scotia

10 year term, 50 years amortization
MLI Select"

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View other student housing mortgage solutions

CMHC financing

As a deeply experienced 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.

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 construction loan, whether CMHC insured or conventional, provides funds to cover the cost of building or rehabilitating a student housing property with terms typically of three years or less.