Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.
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 scores.
- Offers a secured credit card, the First National Home Equity Mastercard, that is backed with your home equity.
- Borrowers must use a mortgage broker.
- Commercial and 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
- Mortgages for applicants with both good and bad credit.
- 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, Toronto-based 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 provides mortgages throughout the country, but their subprime mortgages — known as Excalibur loans — are only available in a few provinces/regions.
Though First National Financial offers both commercial and residential mortgages, it does not work directly with consumers. Interested borrowers must use a mortgage broker to apply for a mortgage from First National Financial.
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.
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.
First National mortgages feature overview
Variety of mortgages available
First National advertises the following:
- Fixed-rate mortgages.
- Adjustable-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.
- HELOC/credit card hybrid: Ontario homeowners can use First National’s secured credit card, which has a credit limit based on their available home equity.
- Echelon Home System Warranty Program: Provides up to $10,000 for eligible repairs for your first 12 months of home ownership.
- Mortgage protection insurance: An add-on product that helps pay off a mortgage in the event of an unexpected death, accident or illness that prevents you from working.
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 4.5 out of 5 possible stars based on over 890 customer reviews, at the time of this writing.
- First National Financial had no customer reviews on the Better Business Bureau website at the time of this writing. First National is not accredited by the BBB.
Because First National Financial doesn’t provide mortgages directly to clients, your customer service experience will largely depend on the broker you work with.
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:
To qualify for a prime mortgage with First National Financial, as with any lender, you’ll need to meet certain eligibility requirements. These include:
- Minimum credit score: First National works with home buyers who have credit scores below 580.
- Credit history: A bruised credit history may not disqualify you from getting a mortgage with First National, but it will result in paying a higher mortgage rate.
- Income: The amount of income needed will vary depending on how much you want to borrow.
- Down payment amount: Most First National mortgages require a down payment of at least 20%.
- Debt service ratios: First National’s debt service ratio limits are flexible since many of their mortgages aren’t insured.
- Type of employment and employment history: You must be able to demonstrate at least two years of consistent employment.
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. | Above 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 1-888-488-0794. You cannot apply for a mortgage directly with First National Financial, but will instead need to work with a mortgage broker.
About the Author
START YOUR MORTGAGE JOURNEY
Today’s Best First National Mortgage Rates
Find the right First National mortgage by comparing rates on the company’s traditional and alternative loan products.
Calculator: How Much Mortgage Can You Afford?
Use our mortgage affordability calculator to see how your interest rate, down payment and debt ratios affect your housing budget.
The Best Mortgage Rates in Canada
Quickly explore Canadian mortgage rates from bank and non-bank lenders. Find the best fixed or variable mortgage rate for your home buying needs.
Clay Jarvis
Mortgage Payment Calculator
Use our mortgage payment calculator to estimate your monthly mortgage payments in Canada. Enter your loan details to get an accurate and quick assessment of your mortgage costs.