Mortgages · Lender review
First National mortgage review
The monoline benchmark: Canada’s largest non-bank lender publishes its contract-rate IRD worksheet in plain view, posts the cleanest rate table in the country, and services every loan in-house — you just need a broker to get in the door.
Best for: Anyone whose broker can place them here — especially borrowers who might break the term
Pros
- Contract-rate IRD published as an actual worksheet — no posted rates, no discount add-back
- Three-month cap kicks in after year 5 of longer terms
- Full public rate table by insurance tier, stamped with an effective date
- 15% lump sums, 15% payment increases and double-up payments
- Servicing stays in-house — the broker hands you off to First National, not a stranger
Cons
- Broker-only — no direct application
- No HELOC (a secured Mastercard is the closest thing)
- Some products carry flat-rate prepayment charges instead — confirm which paper you’re getting
Why monoline penalty math matters
First National’s prepayment page shows the whole formula: your rate, minus “the current rate for a similar mortgage,” times balance and remaining term. Compare that with a big bank’s posted-minus-discount method on the same break and the difference is routinely thousands of dollars — same mortgage, same rates, different formula. After the fifth year of longer terms, the charge caps at three months’ interest regardless.
One verified caveat: some products substitute a flat-rate charge (the worksheet’s example is 2.75% of balance), and cash-back must be repaid pro-rata. Ask your broker which prepayment schedule the specific commitment carries.
The product and the channel
Terms run 1–10 years fixed plus a 6-month open and a true ARM — payments move when the rate moves, no trigger-rate illusion. The rate table on firstnational.ca is the most transparent in Canada: every insurance tier (insured, four insurable LTV bands, conventional) priced and dated — it’s the same table our rate page scrapes every morning.
Access is exclusively through mortgage brokers, but servicing is First National’s own — the My Mortgage portal, their call centre, their renewals. There’s also Excalibur, their alternative-lending program, for files that miss prime criteria.
Frequently asked questions
How does First National calculate mortgage penalties?
Contract-rate IRD, in writing: your rate minus the current rate for a similar mortgage over the remaining term — no posted rates, no discount add-back. After year 5 of longer terms, capped at three months’ interest. For a closed fixed mortgage the charge is the greater of three months' interest or the IRD; variables are typically three months' interest. Run your numbers in our penalty calculator, and remember only the lender's own payout statement is binding.
How much can I prepay at First National without a penalty?
Lump sums up to 15%/yr (min $100) of the original principal per year, plus a payment increase of up to 15%/yr (fixed only) + double-up payments. Privileges reset annually and generally don't carry forward — and using them just before breaking a mortgage shrinks the balance the penalty is computed on.
Does First National offer a HELOC or readvanceable mortgage?
None (a home-equity secured Mastercard instead). HELOCs at federally regulated lenders are stress-tested like mortgages and capped at 65% of home value within an 80% total — the mechanics (and the retiree angle) are in our HELOC guide.
Is a mortgage from First National safe?
Borrowing carries no deposit-style risk — if a lender fails, your mortgage continues on its terms with a new owner; you never owe it back early. What matters is the contract: penalty method, prepayment room, and portability. That's exactly what this review scores.
The bottom line
If your broker offers First National at a competitive rate, the penalty math alone is a reason to take it seriously — it’s the structural advantage banks won’t match. Check its live pricing on the rate table, where its numbers refresh automatically every morning.
See how First National prices today
Benchmarks and verified lender offers, refreshed from the source.
Educational review, not financial advice or a mortgage offer. Product facts verified at First National's own pages and disclosures on June 12, 2026; rates shown come from our daily pipeline (scraped or hand-verified at the lender, stamped per row) and change without notice. Penalty wording summarizes the lender's published method — the payout statement is the only binding figure.