Permanent Financing

Understand permanent financing in Canadian real estate — what it is, when it applies, and how it supports completed projects.

Permanent Financing

August 01, 2025


What is Permanent Financing?

Permanent financing is long-term financing used to replace short-term construction or bridge loans once a property is completed and stabilized.

Why Permanent Financing Matters in Real Estate

In Canadian real estate, permanent financing provides developers and owners with predictable, long-term debt after project completion.



Key points:
  • Typically a mortgage with fixed or floating rates
  • Secured once occupancy and cash flow targets are met
  • May be provided by banks, insurance companies, or CMHC



Understanding permanent financing helps developers plan exit strategies from construction financing.

Example of Permanent Financing in Action

The apartment building transitioned from its construction loan to permanent financing after achieving 95% occupancy.

Key Takeaways

  • Replaces short-term construction or bridge loans
  • Provides long-term financial stability
  • Secured once property is stabilized
  • May involve fixed or variable rates
  • Key milestone in project lifecycle

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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