Retirement housing
Smart-risk lending solutions for retirement housing owners and developers
An aging population and longer life expectancies are boosting demand for various forms of retirement housing and First National is in the business of financing this vital form of shelter.
As empowered advisors, we provide smart-risk solutions, both insured and conventional, to property owners and developers across the country.
Retirement housing assets we finance:
In general, retirement housing refers to assets that provide accommodation and care services to people aged 65 and up. The level of care services and assistance with acts of daily living (ADLs) increases with the care required by residents.
Throughout our history of lending across Canada, we have amassed significant experience in lending to these asset types:
- Independent Living – apartment style with kitchens; may be part of a community that offers services for a fee such as dining, social/fitness activities, housekeeping/laundry services and personal care
- Independent Service Living - meals are provided along with housekeeping/laundry services, activities, and some lighter level of personal care such as medication administration and bathing assistance, with a 24-hour emergency response system
- Assisted Living – involves similar services to Independent Service Living but also focuses on the provision of care services to aid with ADLs, as required, and typically provides 24-hour nursing care
- Long-Term Care – typically a provincially funded service, providing an environment with 24-hour nursing care
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.
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.
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.
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.
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.
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.
Refinance of a construction loan for a 4-storey, 180-unit retirement home.
- $51 Million
- 180 units
- Calgary, Alberta
- CMHC insured first mortgage
- 10 years term, 35 years amortization
- LTV: 82%
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%
To facilitate construction financing of a seven-story apartment
- $26 Million
- 198 units
- Sainte-Adele, Quebec
- CMHC financing
- 3 years term, amortization Interest only
- LTV: 84.90%"
Funds will be used by the borrower to payout the construction debt maturing
- $85.3 Million
- 564 units
- Terrebonne, Quebec
- CMHC insured first mortgage loan
- 5 years term, 25 years amortization
- LTV: 70%
Internal refinance to proceed with renovations on the building.
- $7.3 Millon
- 93 units
- Montreal, Quebec
- CMHC insured first mortgage loan
- 5 years term, 35 years amortization
- LTV:85%
Refinance first and second mortgage loan to the property for future investment
- $12 Million
- 103 units
- Baie-D'Urfe, Quebec
- CMHC insured first mortgage loan
- 5 years term, 25 years amortization
- LTV: 59.96%
To provide a loan that will repay the current loan on the property
- $13.7 Million
- 144,000 sq. ft.
- Edmonton, Alberta
- CMHC insured first mortgage loan
- 10 years term, 30 years amortization
- LTV: 89.3%
Funds used for capital repairs on the subject property
- $24.3 Million
- 163 units
- Georgetown, Ontario
- CMHC insured first mortgage loan
- 5 years term, 25 years amortization
- LTV: 85%
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