First National Mortgage Review 2026

First National's straightforward penalty structure and competitive rates make it a top choice for broker-sourced mortgages

★★★★☆4.2/5Overall Rating
Rates
4.4
Penalties
4.5
Flexibility
4.0
Service
4.0
First National Quick Facts: Canada's largest non-bank mortgage lender. Lender type: monoline. Penalty structure: simple 3-month interest. Available through: mortgage brokers (not directly to consumers).

First National Mortgage Rates — March 2026

TermIndicative RateType
1-Year Fixed5.04%Closed
3-Year Fixed4.49%Closed
5-Year Fixed4.24%Closed
5-Year VariablePrime – 0.85%Closed

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About First National

Canada's largest non-bank mortgage lender. Operating as a monoline lender, First National focuses on originating mortgages through Canada's broker channel rather than direct-to-consumer sales. This model allows First National to keep overhead low and pass savings to borrowers in the form of competitive rates and flexible products.

How First National Mortgages Work

To access First National's products, you work with a licensed mortgage broker who submits your application on your behalf. First National underwrites the mortgage and services it after closing. Your day-to-day payment experience is virtually identical to a bank mortgage — you make payments, receive statements, and contact First National for account management. The key differences are the rate (typically lower) and the penalty structure (typically simpler and cheaper).

Penalty Structure: simple 3-month interest

This is one of the most important reasons borrowers choose First National over the big banks. Unlike the Big Six banks' complex IRD calculations based on posted rates (which can produce penalties of $15,000–$30,000+), First National's penalty approach is more straightforward and predictable. This matters enormously if life changes require you to break your mortgage before the term ends.

First National Pros and Cons

Pros

  • Competitive rates typically below big banks
  • Simpler, more predictable penalty structure
  • Strong track record in Canadian mortgage market
  • Good prepayment privileges (typically 20/20)
  • Flexible for various property types

Cons

  • Only accessible through mortgage brokers
  • No branch network for in-person service
  • Less flexible for very complex income situations
  • No bundled banking products
  • May not serve all property types (some restrictions on rural)

Who Should Choose First National?

First National is an excellent choice for borrowers who want to minimize their total mortgage cost, are comfortable working digitally, and have a straightforward property purchase or refinance. First-time buyers, repeat buyers upgrading homes, and existing homeowners renewing their mortgage are all strong candidates. If you're purchasing a unique property (rural acreage, mixed-use, etc.) or have highly complex income, some products may have limitations.

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Last updated: March 2026. Ratings are editorial opinions. Rates indicative. Not financial advice.