Exploring First National Mortgage Rates: What Homebuyers Need to Know in 2025

When navigating the world of home buying, understanding mortgage rates is essential. Whether you are a first-time homebuyer or looking to refinance, securing the best mortgage rate can make a significant difference in the long run. One company that has established itself as a prominent lender in the market is First National Financial Corporation. Known for its competitive rates and range of mortgage products, First National is often considered a top choice for Canadian homebuyers. In this article, we will explore the First National mortgage rates, how they compare to other lenders, and what factors to consider when applying for a mortgage in 2025.

Understanding First National Mortgage Rates

First National Financial Corporation is one of the largest non-bank mortgage lenders in Canada, providing a wide range of mortgage options to homebuyers. The company has gained a reputation for offering competitive rates and providing flexible mortgage solutions for various financial situations. First National’s mortgage rates are subject to market conditions and can fluctuate based on economic factors such as inflation, the Bank of Canada’s benchmark interest rate, and the overall demand for housing.

As of 2025, First National offers both fixed-rate mortgages and adjustable-rate mortgages (ARMs), catering to different borrower preferences. Fixed-rate mortgages are a popular choice for many homebuyers, offering stability and predictability throughout the life of the loan. Conversely, ARMs tend to be more flexible and can provide lower initial interest rates, but they come with the risk of rate increases over time.

Types of Mortgages Offered by First National

First National provides various types of mortgages, each suited to different financial situations. Understanding the differences between these mortgage options is key to selecting the one that best fits your needs.

Fixed-Rate Mortgages

A fixed-rate mortgage locks in your interest rate for the entire term of the mortgage, which typically ranges from 1 to 10 years. The main benefit of a fixed-rate mortgage is the certainty it offers. Your monthly payments will remain the same, making it easier to budget and plan for the future. This type of mortgage is ideal for homebuyers who prefer stability and want to avoid fluctuations in their payments due to market conditions.

However, there are some downsides to fixed-rate mortgages. If interest rates drop during the term of your mortgage, you will be locked into the higher rate, meaning you could miss out on potential savings. Additionally, fixed-rate mortgages may have slightly higher initial rates compared to ARMs, which could mean higher monthly payments at the outset.

Adjustable-Rate Mortgages (ARMs)

An adjustable-rate mortgage (ARM) offers an interest rate that is initially lower than that of a fixed-rate mortgage. The rate is typically fixed for the first few years (usually 3, 5, or 7 years) and then adjusts periodically based on changes in the market interest rates. This type of mortgage can be an attractive option for borrowers who plan to move or refinance before the adjustable period begins.

One key advantage of an ARM is the lower initial interest rate, which can lead to significant savings in the early years of the mortgage. However, the downside is that the interest rate can increase over time, which could lead to higher monthly payments. If interest rates rise significantly, your mortgage payments could become unaffordable. ARMs are better suited to borrowers who are comfortable with some degree of uncertainty and plan to sell or refinance before the rate adjusts.

Convertible Mortgages

A convertible mortgage is a hybrid product that allows you to switch from a variable or adjustable-rate mortgage to a fixed-rate mortgage at any point during the term, usually without paying additional fees. This option provides flexibility for homeowners who want the initial savings of an ARM but might prefer the certainty of a fixed-rate mortgage later on.

The main benefit of a convertible mortgage is the ability to lock in a fixed rate if interest rates rise during the term of your mortgage. However, the initial rate for a convertible mortgage is often higher than that of a standard ARM, so you might not see as much initial savings.

Eligibility Criteria for First National Mortgages

Before applying for a mortgage with First National, there are several eligibility criteria to consider. Like most lenders, First National assesses your financial situation to determine if you qualify for a mortgage and what interest rate you may be offered. Here are the key factors to keep in mind:

Credit Score

Your credit score is one of the most important factors in determining your eligibility for a mortgage. First National, like other lenders, typically requires a minimum credit score of 600 for approval. However, borrowers with higher credit scores (750 and above) are more likely to be offered lower interest rates. A higher credit score signals to the lender that you are a responsible borrower, reducing their risk.

If your credit score is below the required threshold, you may still be able to qualify for a mortgage, but you may face higher interest rates or need to provide a larger down payment. Improving your credit score before applying for a mortgage can help you secure better terms.

Down Payment

The size of your down payment can also impact your eligibility and the terms of your mortgage. First National generally requires a minimum down payment of 5% for homes valued under $500,000. For homes priced over $500,000, the down payment requirement increases to 10%. A larger down payment not only helps you qualify for a mortgage but can also result in better interest rates and lower monthly payments.

Income and Employment Status

Lenders like First National also require proof of income and employment status to ensure you can afford the mortgage payments. You will need to provide documentation such as pay stubs, tax returns, and other financial statements to verify your income. Lenders typically look for stable employment history and income levels to ensure that you can continue making payments throughout the term of the mortgage.

How to Apply for a First National Mortgage

Applying for a mortgage with First National is a straightforward process. Here are the general steps involved:

1. Pre-Approval: Start by getting pre-approved for a mortgage. This involves submitting your financial information to First National so they can assess your eligibility and provide an estimate of the loan amount you may qualify for.

2. Choose Your Mortgage Type: After getting pre-approved, choose the type of mortgage that best suits your needs—whether it’s a fixed-rate, adjustable-rate, or convertible mortgage.

3. Submit Your Application: Once you’ve selected a mortgage product, you can submit a full application. This will involve providing detailed financial documentation and verifying your employment and income.

4. Approval and Offer: After reviewing your application, First National will make an offer based on your financial situation. If you accept the offer, you’ll sign the mortgage agreement and proceed with the closing process.

Pros and Cons of Choosing First National

There are several advantages and potential drawbacks to consider when choosing First National as your mortgage lender.

Advantages

• Competitive Rates: First National offers some of the most competitive mortgage rates in Canada, particularly for those with good credit scores. This can result in significant savings over the life of your mortgage.

• Flexible Options: With a range of mortgage products, including fixed, adjustable, and convertible rates, First National provides flexibility to suit different borrower needs.

• Non-Bank Lender: As a non-bank lender, First National can sometimes offer more personalized service and may be more flexible in approving borrowers who don’t meet the strict criteria of traditional banks.

Potential Drawbacks

• Not as Well-Known as Major Banks: While First National is one of the largest non-bank lenders in Canada, it doesn’t have the same brand recognition as major banks like TD or RBC.

• Limited Branch Locations: Since First National operates mainly online, there are fewer physical branches where you can meet with a mortgage specialist in person.

• Higher Initial Rates for Some Products: While First National’s rates are generally competitive, some mortgage products, particularly convertible mortgages, may have higher initial rates compared to other lenders.

Comparing First National Rates with Other Lenders

When shopping for a mortgage, it’s important to compare rates across different lenders to ensure you are getting the best deal. While First National offers competitive rates, it’s always a good idea to check with major banks, credit unions, and other non-bank lenders to see if they have better offers.

Some key factors to consider when comparing rates include:

• Interest Rates: Look at both fixed and variable rates offered by each lender and see how they compare.

• Fees: Make sure to account for any additional fees, such as application fees, appraisal fees, and closing costs, that may impact the overall cost of the mortgage.

• Mortgage Terms: Consider the length of the mortgage term and whether the lender offers flexible options, such as the ability to pay off the mortgage early without penalties.

Mortgage Rate Trends in 2025

As of 2025, mortgage rates in Canada are influenced by a number of factors, including the Bank of Canada’s interest rate policies and global economic conditions. While rates have been relatively stable in recent years, experts predict that rates may begin to rise in the coming months as the economy recovers from the effects of the pandemic.

It’s important to stay informed about the latest mortgage rate trends to make an informed decision about when to lock in your rate. First National has a track record of offering competitive rates, but it’s essential to keep an eye on changes in the market to ensure you’re getting the best possible deal.

Tips for Securing the Best Mortgage Rate

To secure the best mortgage rate, consider the following tips:

• Improve Your Credit Score: The higher your credit score, the better your chances of qualifying for a lower interest rate. Take steps to improve your credit score before applying for a mortgage.

• Save for a Larger Down Payment: The larger your down payment, the less risk you pose to lenders, which can result in a better interest rate.

• Shop Around: Don’t settle for the first offer you receive. Compare rates from different lenders and mortgage brokers to find the best deal.

Conclusion

In conclusion, First National mortgage rates are highly competitive, offering homebuyers flexible options for both fixed and adjustable-rate mortgages. By understanding the types of mortgages available, eligibility requirements, and the application process, you can make an informed decision when applying for a mortgage in 2025. Whether you are looking for stability with a fixed-rate mortgage or flexibility with an ARM, First National provides a range of products to suit your needs. Always remember to compare rates across different lenders and consider factors such as credit score, down payment, and market conditions to secure the best mortgage deal for your financial situation.

FREQUENTLY ASKED QUESTIONS:

What is the current average mortgage rate in Canada?

Mortgage rates vary depending on the lender and the type of mortgage, but the average rate for a 5-year fixed mortgage is around 4.5% in 2025.

How does a fixed-rate mortgage differ from an adjustable-rate mortgage?

A fixed-rate mortgage offers a consistent interest rate for the entire term, while an adjustable-rate mortgage has an initial low rate that may increase after a few years.

What are the benefits of working with a mortgage broker?

A mortgage broker can help you compare rates from multiple lenders and find the best deal for your financial situation, saving you time and effort.