Founded in 1988 and publicly traded on the Toronto Stock Exchange (FN), First National Financial LP has grown into Canada's largest non-bank mortgage lender by origination volume, consistently funding over $130 billion in mortgages under administration. Unlike the Big Six banks, First National operates exclusively as a monoline lender — meaning mortgages are their only business, and that singular focus translates directly into sharper pricing and borrower-centric product design.
First National works exclusively through the mortgage broker channel — you cannot walk into a branch or apply on their website directly. This model keeps their overhead low and ensures borrowers are matched with the product that genuinely suits their needs, rather than being upsold on a bank's full suite of financial products. Their Excalibur and Merlin product lines cater to a wide range of borrower profiles, including near-prime and alternative qualification scenarios.
First National registers mortgages as standard charges (not collateral charges), which is an important distinction for borrowers who want the flexibility to switch lenders at renewal without paying additional legal fees. Their competitive 20/20 prepayment privileges — allowing borrowers to increase payments by 20% and make lump-sum contributions of up to 20% of the original principal annually — put them ahead of most Big Six offerings.
For fixed-rate mortgages, First National charges the greater of three months' interest or the Interest Rate Differential (IRD). First National calculates the IRD using the difference between your contracted rate and their current rate for a term closest to your remaining term — this approach is generally fairer than the posted-rate method used by most Big Six banks. Variable-rate mortgages carry only a three-month interest penalty, making them significantly cheaper to break. Borrowers planning to sell or refinance before maturity should request a penalty estimate from their broker before signing.
No. First National exclusively distributes its mortgages through licensed mortgage brokers and agents. You cannot apply on their website or visit a branch. This broker-only model is intentional — it keeps costs low and ensures borrowers receive independent advice. Working with a Nordaux broker gives you access to First National's full rate sheet, including competitive rates available through the broker channel.
A standard charge mortgage is registered at exactly the amount you borrowed. At renewal, you can switch to a different lender using a simple assignment — typically free or at minimal cost. This contrasts with a collateral charge (used by several major banks), which is registered at up to 125% of your home's value. Collateral charges lock you into your lender at renewal because switching requires a full refinance with legal fees of $700–$1,500. First National's standard charge registration gives you genuine freedom at renewal.
First National's 20/20 prepayment privilege has two components. First, you can increase your regular mortgage payment by up to 20% over your original payment amount at any time during the year. Second, you can make a lump-sum payment of up to 20% of the original mortgage principal once per calendar year, penalty-free. For example, on a $500,000 mortgage, you could make a $100,000 lump-sum contribution per year in addition to increasing your monthly payment. These are among the most generous prepayment terms available from any Canadian lender.
Have a specific question about First National rates, products, or eligibility? A licensed broker will review your question and be in touch.