First National Financial is a mortgage lending company that was founded in 1988, and has its current headquarters in Toronto, Ontario. First National provides residential mortgages and commercial mortgages, however does not provide these products directly to home buyers, but instead through mortgage brokers across Canada. This allows First National to offer both very attractive mortgage rates and specialized products, depending on your individual needs. As of 2020, First National has over $118 billion in assets under management, with five regional offices across major cities in Canada, including: Toronto, Montreal, Calgary, Halifax, and Vancouver. In total, First National employs over 1000 people in Canada.
A fixed rate mortgage with First National protects you from the potential risk that in the future, interest rates may rise. A fixed rate mortgage ensures that throughout your mortgage term, your interest rate will remain the same, helping you better plan to pay off your mortgage balance. The most popular fixed term is a 5-year fixed mortgage, which will allow you to have the same interest rate on your mortgage balance for the next 5 years. Getting a fixed rate mortgage can especially give you the peace of mind you need if you are a first time home buyer with a large mortgage amount owing, with the security it provides knowing your interest rate will not rise during your term. When you are getting pre-approved for a mortgage, you will be able to still receive the interest rate you are offered for a short period of time, even if mortgage rates rise.
Term | First National Rate | Canada's Lowest Rate |
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The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Getting a variable rate mortgage will mean that your First National mortgage rate will fluctuate along with First National’s prime interest rate. If the prime rate rises, so will your mortgage rate, while if it falls, your mortgage rate will also fall. This makes variable rate mortgages very popular for homebuyers who expect the overnight interest rate set by the Bank of Canada to be lower over their mortgage term. Although the interest rate will fluctuate, your monthly mortgage payments will stay the same throughout your term. The only effect of interest rate fluctuations on your monthly mortgage amount will be in determining how much of your payment goes towards the principal balance and towards interest. If your mortgage rate rises, more of your payment will go to interest payments and less to the principal, and if it falls, more will go to the principal amount with less interest owing.
If you are looking for the stability of a fixed rate mortgage but think mortgage rates will be lower in the future, another option is a convertible mortgage. This will allow you to convert from a variable rate mortgage to the current fixed mortgage rate for the rest of your term, providing both stability and flexibility to your mortgage.
Term | First National Rate | Canada's Lowest Rate |
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The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
The prime rate at First National acts as the foundation for most of the mortgage products that are offered. These products primarily include residential mortgages and commercial mortgages. As well, if you get a HELOC through First National’s partner, Duo Bank, the interest rate on that credit product will fluctuate with the current prime rate. For all of First National Financial’s products, the prime rate is combined with a spread. This spread will either be in addition to the current prime rate, meaning the interest rate will be above the prime rate, or will subtract from the prime rate. For normal residential mortgages at First National, the mortgage rate you get is usually subtracted from the prime rate, meaning it is less than the prime rate.
First National posted rates are the official rates that the lender will use when calculating your mortgage break penalty, which is the fee you will pay if you want to break or refinance your mortgage early. Posted rates usually are higher than the rate you will qualify for when getting a mortgage, because lenders like First National may leave room to negotiate your rate down when you are shopping around.
Term Length | First National Posted Rate |
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Bank or Lender | Variable Rate Mortgage | Fixed Rate Mortgage |
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3 Months’ Interest | Greater of 3 Months’ Interest or the IRD amount |
Difference in interest payable between your current mortgage rate and First National’s current posted interest rate on a comparable mortgage for the remaining term.
Are you looking to pay off your mortgage early? Or refinance the terms of your mortgage at a lower interest rate? Maybe you sold your home. Whatever the case, you most likely will have to pay a mortgage break penalty set by your lender. Whatever the situation, our calculator will help you determine the cost to break your mortgage so you can be confident about your mortgage decisions.
Offered on First National mortgages through Echelon Insurance, this program will protect you from the costs of home repairs on your new home. This policy will provide up to $10,000 in coverage, and will cover your central heating and air condition, your water heater, electrical system, and plumbing. For your first 12 months, First National will provide this service to you for free; all that will be required is paying the $50 consultation fee when you are using your coverage. If you do not want to continue with this coverage after the first 12 months, you can cancel coverage when you are contacted by First National to renew it.
As a way to provide you peace of mind and to cover your mortgage in the event of a tragedy, First National offers mortgage life insurance and disability insurance through Manulife Financial. You are able to insure your mortgage for up to $1,000,000 in coverage for mortgage life insurance and for 24 months of mortgage payments for disability insurance. Coverage pricing depends on your age and mortgage amount, and your premiums will not increase as you hold the coverage. Mortgage protection insurance is paid monthly along with your mortgage payments, and is offered for First National borrowers, co-borrowers, and mortgage guarantors.
First National offers multiple ways to pay down your mortgage faster, including:
Depending on your financial situation and mortgage terms, First National may have you pay your property tax bill through them. This takes the shape of monthly property tax payments being provided to them every month, which they hold for you in your own property tax account. When it comes time to pay your tax bill, they will pay it to your municipality. This can make the process of paying much easier, especially for first time home buyers who may be unfamiliar with deadlines and the payment process.
Offered by the Duo Bank of Canada, you will be able to utilize your home equity that you have built up through a home equity secured credit card. This may help you to consolidate other debts, plan a home renovation, cover expenses, or even make a large purchase. When meeting with your mortgage broker, you will be able to see what type of rates you will qualify for, potentially allowing you to save thousands in interest versus traditional credit cards or unsecured lines of credit. This product will have a credit limit of up to $150,000, and your set up fee for it will be 2% of this credit limit amount. This product is only offered to Ontario First National mortgage holders.
If you are planning on purchasing an investment property to earn a rate of return from, First National provides mortgage brokers with mortgage options to offer you. You will be able to get a mortgage for up to 80% of the purchase price of the property for non-owner-occupied properties with 1 to 4 units. The maximum amount of mortgage offered for Greater Toronto Area, Vancouver or Calgary rental properties is $750,000, while elsewhere across Canada the maximum amount will be $600,000. If you are looking for a more expensive rental property or a different type of rental property, such as for a retail, industrial or office property, you may be able to get a commercial mortgage from First National instead.
Considering that getting a self-employed mortgage can be tricky depending on the nature of your employment, First National offers a stated income mortgage for both insured and uninsured home buyers. This will allow you to not require traditional income verification, which can be very beneficial if your actual income and stated income are different. With the insured self-employed mortgage, you will require 2 or more years of credit history and a strong repayment track record, while uninsured self-employed mortgages will require 3 or more years of credit history and a large down payment. An insured mortgage will allow you to get a mortgage for up to 90% of your purchase price, while an uninsured mortgage will only allow for up to 65%.
Stated Income Mortgage (Conventional) | Stated Income Mortgage (Insured) |
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Required: 3+ years credit history, minimum 35% down payment. | Required: 2+ years credit history, minimum 10% down payment, good track record of repayments. |
Since a First National mortgage is not offered directly to the public but instead through a network of mortgage brokers across Canada, meeting with a local mortgage broker is your first step to getting a First National mortgage. First National will be one of the lenders that your mortgage broker will compare rates with, and if it is the lowest rate or the best choice for your situation, you may choose to get a mortgage with First National. Working with a mortgage broker can be beneficial in most situations, with the ability to find the best mortgage rate while getting the chance to get a mortgage from First National.
As your mortgage term is coming to a close, you will be sent a renewal agreement and be able to review the different mortgage terms and rates offered by First National. Although the process of renewing your First National mortgage is simple, it is usually the best idea to shop around across other mortgage lenders or with a broker to determine if you are getting the best deal when you renew.
If you are thinking of switching from your current mortgage lender to First National, they will cover processing fees, the cost of a home appraisal, and legal fees, for up to $3000. Combined with the potential that you may get a lower mortgage rate with First National, it may be an option to consider.
The primary way you can manage your mortgage with First National on your own is through the First National My Mortgage portal. This portal will keep you up to date on your mortgage and allow you to manage your mortgage details. First National also has a dedicated phone line for you to call for existing mortgage inquiries, which is 888-488-0794. As well, under the “Contact us” section of the First National website, the company provides other options for customer service, including contact information for each office, and email addresses.
As the largest non-bank mortgage lender in Canada, First National Financial helps Canadians across the country to finance the purchase of a home. The following review scores below are compiled from third party websites to give you a better idea of what it is like getting a mortgage with First National:
Google Reviews (for First National Financial LP): 3.8/5 across 239 reviews
Loans Canada: 3.0/5 across 5 reviews
Some of the pros and cons of getting a mortgage with First National are:
Pros | Cons |
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First National mortgage rates are very competitive with other lenders across Canada. | First National does not offer a mortgage directly to you; you will require a mortgage broker. |
First National offers a variety of products to help find a mortgage in any situation. | First National is only a mortgage lender, meaning you will not be able to get all your financial solutions from one provider. |
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