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First National Financial at a glance
First National Financial is a non-bank mortgage lender providing residential, commercial and sub-prime mortgages via a network of mortgage brokers.
- One of Canada’s largest non-bank mortgage lenders.
- Offers a wide variety of commercial and residential mortgage options, including products for the self-employed, and Canadians with lower credit score.
- Offers a secured credit card, the First National Home Equity Mastercard, that is backed with your home equity.
- Clients can’t deal directly with First National but must go through a mortgage broker
- Commercial & residential mortgages
- Fixed-rate mortgages
- Adjustable-rate mortgages
- Closed and open mortgages
- Conventional and insured mortgages
- Property Plus Improvement mortgage
- Refinances and second mortgages
- Excalibur mortgage for poor credit or self-employed borrowers
- Investment property mortgages
Pros
- First National has mortgages for applicants with both good and bad credit.
- First National offers assumable mortgages.
Cons
- No online pre-qualification or pre-approval forms.
- Limited online rate information.
- Some products are only available in specific provinces.
First National Financial review
Established in 1988, First National Financial is one of the country’s largest non-bank lenders — sometimes referred to as B lenders — managing over $100 billion in mortgages.
First National Financial is headquartered in Toronto but it has several offices across Canada and provides mortgages throughout the country (though their subprime mortgages — known as Excalibur loans — are only available in a few provinces/regions).
Though First National Financial specializes in both commercial and residential mortgages, it does not work directly with consumers. Instead, interested borrowers must use a mortgage broker to apply for a mortgage from First National Financial.
The company has a wide variety of mortgage types, including loans for clients seeking to finance commercial real estate.
First National Financial offers commercial mortgages for senior homes, industrial, multi-family dwellings, retail, storage facilities, student housing, mixed use and even land development.
For residential borrowers, First National offers fixed, variable, 6-month open, conventional and insured mortgages, as well as mortgages for investment properties and for those who want to roll the cost of home improvement into their mortgage.
For eligible Ontario homeowners, First National Financial also has a secured credit card that works much like a HELOC — the credit limit is based on your available home equity.
Finally, First National has some complementary mortgage programs. One is the no-cost First National home warranty. The policy provides up to $10,000 for eligible repairs for your first 12 months of home ownership. You can renew your mortgage after the first year for a fee. They also offer mortgage protection insurance (for a fee) that would help you pay off a mortgage in the event of an unexpected death or a severe accident or illness that prevents you from working.
Who is First National Financial best for?
First National Financial may be a good choice for anyone who is interested in the more competitive rate options of a non-bank lender, as well as those who might have difficulty qualifying for a traditional mortgage.
If you’re a first-time home buyer with a low credit score, or a self-employed borrower, First National Financial offers home loan options, like the Excalibur mortgage, that may not exist at a traditional bank or credit union.
First National Financial also has attractive rates and unique loan products for current homeowners who want cash-in on their home equity.
However, because First National Financial does not engage in direct lending, you will have to use a mortgage broker to access their products.
First National mortgages feature overview
Variety of mortgages available
First National advertises the following:
- Fixed-rate mortgages.
- Variable-rate mortgages.
- Home equity lines of credit (Ontario only).
- Rehabilitating credit mortgages.
- Renewals.
- Mortgages for investment properties.
- Renovation mortgage financing.
- Mortgages for self-employed people.
Ease of application
First National doesn’t have online application forms or branch locations.
- Online pre-qualification: No. First National doesn’t have an online pre-qualification form.
- Online pre-approval: No. You’ll need to contact First National to get started.
- Online mortgage application: No. There’s no online application.
- In-person option: First National does not operate branch locations.
Mortgage rate transparency
First National’s website lists posted rates, but not special rates or APRs, which makes it harder to quickly compare the total cost of a loan to other lenders. One strength of its website is that it breaks down rates by credit score for bad-credit mortgages. For example, there are three-year rates listed for credit scores below 580, between 580 and 599, between 600 and 649 and so on.
- Posted rates: Yes. First National has posted rates on its website. Rates for applicants with lower credit are broken down into five credit score bands.
- Special rates: First National does not cite discounted rates on its website.
- APR: First National doesn’t publish annual percentage rate information, which makes it harder to quickly compare the cost of different mortgages, including fees.
Other details
Increase your payments: You can increase your standard payment by up to 15% without penalty or pay your standard payment twice on each payment date, with the second payment going entirely toward the principal.
Make lump-sum payments: You may be able to pay down up to 15% of your original loan on some fixed-rate closed mortgages up to once per year. That limit restricts your ability to prepay your principal compared to some other lenders: For example, RBC and TD each have a payment-increase limit of 100%.
Prepayment penalties: If you pay off your fixed-rate mortgage beyond the set limits, you’ll pay a prepayment penalty. These vary by lender; at First National, you’ll pay the greater of three months interest on the prepayment amount (based on your mortgage interest rate) or the interest rate differential on your prepayment amount.
Range of terms: First National lists rates for 6 months through 10 years.
Portability: If you move before the term of your First National mortgage is up, you might have the option to port your mortgage to your new home.
Assumable mortgages: If you have a First National mortgage on a home you’re selling, the eventual buyer may be able to assume your mortgage, if they qualify — a relatively uncommon feature. Here’s why that could matter: If the terms of your existing mortgage with First National are better than the market rates at that time, this could be a selling point.
Some geographic limits. Excalibur Mortgages, which are for applicants with low credit, are only available in Ontario, British Columbia, Atlantic Canada and the Prairies.
Customer satisfaction ratings
Customer review websites can be helpful in gauging customer satisfaction, but keep in mind that the reviews aren’t verified and may not accurately reflect the opinion of all First National customers; for example, happy or unhappy customers may be overrepresented in these reviews. Nevertheless, these sites are one way to learn about possible downsides to consider.
- First National Financial had a Google rating of 4.4 out of 5 possible stars based on over 695 customer reviews, at the time of this writing.
- First National Financial had a 5 out of a possible 5 stars, according to just one customer review on the Better Business Bureau website, at the time of this writing. First National Mortgage is not accredited by the BBB.
Because First National Financial doesn’t provide mortgages directly to clients, your customer service experience will largely be provided by a broker. First National does state on its site that it prioritizes customer service and that you can contact them via phone, email or fax, as well as through the My Mortgage portal.
First National Financial mortgage eligibility requirements
To qualify for a prime mortgage with First National Financial, as with any lender or brokerage, you’ll need to meet certain eligibility requirements. These include:
- Minimum credit score: Typically 680, but lower-score options exist.
- Credit history: Established accounts in good standing, no recent negative marks.
- Income: Amount of income needed will vary depending on how much you want to borrow.
- Down payment amount: At least 5% for a home under $500,000. For homes between $500,000 and $999,999, you need 5% of the first $500,000 and 10% of the amount above $500,000.
- Debt service ratios: Your gross debt service ratio must not exceed 39%; your total debt service ratio must not exceed 44%.
- Type of employment and employment history: You must be able to demonstrate at least two years of consistent employment.
For an Excalibur mortgage from First National Financial, the qualifications are different. Depending on your situation (whether or not you’re applying as self-employed), you may have to have had a credit history that is at least two years old and a strong downpayment. It’s unclear what the minimum credit score is for an Excalibur mortgage, but according to ‘recent closings’ listed on the company’s website, scores as low as 580 may be accepted.
How to apply for a mortgage with First National Financial
First National deals exclusively with mortgage brokers, so the only way you can apply for a mortgage with the company is by first contacting a broker. First National can help you do that.
After navigating to the First National homepage, hover over “Residential Mortgages” and then click on “Working with a mortgage broker.”
Click on “Connect with a Broker”, enter your contact information and you should hear from a broker within two business days. We were contacted within hours of submitting our information.
You don’t necessarily have to use the form on the First National site. You can reach out to mortgage brokers in your area and ask them if they work with the company.
Alternatives to First National Financial
If First National Financial is not turning out to be a good option for you, you may find more customized mortgage rates with other lenders and brokers in Canada.
| RBC Mortgage | True North Mortgage | Butler Mortgage | |
|---|---|---|---|
| Lender type | Big Bank lender | Mortgage Brokerage | Mortgage Brokerage |
| Service area | National | National | National |
| In-person service? | Yes | Yes | Yes |
| Ease of application | Easy (online, phone, in-person) | Easy (online, phone, in-person) | Moderately easy (start online, via phone, or by fax) |
| Mortgage variety | Average | Above average | Average |
Frequently asked questions about First National Financial
First National Financial is a non-bank mortgage lender that originates residential and commercial home loans via a network of mortgage brokers.
You can contact First National Financial by sending a message online, using your My Mortgage Account, or by calling 1-888-670-2111. You cannot apply for a mortgage directly with First National Financial, but will instead need to work with a mortgage broker.
Selecting the right mortgage provider is a big decision. A mortgage is a large debt and you want to make sure that you’re getting the best deal possible. You’ll need to do some research, make a list of what’s important to you, and spend some comparing offers from the different types of providers.
- Decide your budget. It’s important to have an idea of how much mortgage you can comfortably afford, before talking with lenders. They may offer you more than you want to spend; it’s important to be ready for that conversation.
- Understand the different types of lenders: Mortgage providers include banks, credit unions, brokers like True North Mortgage, alternative lenders, and private lenders. Each has its pros and cons.
- Compare offers from three different lenders: To ensure you have a good idea of what’s out there, consider seeking mortgage pre-approval from a big bank, a broker and one other type of alternative lender.
- Don’t focus too much on rates. The interest rate is just one part of the mortgage equation. Yes, you want the most competitive rate possible, but it’s also important to weigh the reputation of the lender, the quality of customer service they provide, the types of loans they offer, the fees they charge, and the flexibility of terms they may offer.
» LEARN MORE: Read our guide to choosing a mortgage lender
Like most mortgage brokers and lenders, True North Mortgage lending partners will consider the following when estimating what the regular payment might be for your future mortgage:
- Home price: the total amount you agree to pay for a home.
- Down payment: the total amount you’ll pay upfront toward a home purchase.
- Amortization period: the number of years over which you’ll repay your mortgage.
- Mortgage term: the length of the contract you’ll have with your mortgage lender.
- Payment frequency: how often you’ll make a mortgage payment.
- Mortgage interest rate: the fee you’ll pay to borrow money from the lender; expressed as a percentage of the loan amount.
- Property taxes or title transfer fee: an annual fee based on your property value.
- Mortgage default insurance: an extra cost you’ll pay if your down payment is less than 20%.
Example:
- Home price: $650,000
- Down payment: $58,500 (9%)
- Amortization period: 25 years
- Mortgage term: 5 years
- Payment frequency: Monthly
- Mortgage interest rate: 5.5%
- Mortgage insurance: $23,660
TOTAL MORTGAGE: $615,150
MONTHLY MORTGAGE PAYMENT: $3,778
» MORE: Use our mortgage payment calculator to compare different loan scenarios
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