When people ask us about mortgages, the first question is almost always, "What's the rate?" It's a fair question. But the rate is only one piece of the puzzle. How often you pay, how long your rate is protected, how small a mortgage a lender will offer, and how they look at your income can matter just as much to your monthly budget.

In this post, we're looking at one lender our clients often hear about: First National Financial. First National is one of Canada's largest non-bank mortgage lenders. That means it only does mortgages. There are no chequing accounts and no branches. You can't walk in the door. Instead, you work with a licensed mortgage broker, who sends your application to First National for you.

We're real estate agents, not mortgage brokers, and First National is just one of many lenders a broker can compare for you. We're sharing this so our clients can walk into that broker meeting knowing what questions to ask. Here's what we've learned.

Watch: Our Lunch & Learn Recap

Christine recently joined a lunch and learn with Mortgage Mandy, where two representatives from First National Financial walked through their mortgage programs. In this short video, we share the highlights. Kurtis also covers something that isn't in this post: what happens with porting and penalties if your life changes partway through your mortgage.

Watch the video on YouTube

Prefer to read? Here's the full breakdown.

1. Your Payment Schedule Matters More Than You Think

Most people pick "monthly" without thinking twice. But First National lets you choose from several payment schedules:

• Monthly — 12 payments a year
• Semi-monthly — 24 payments a year, usually around the 1st and 15th
• Bi-weekly — 26 payments a year, every second week
• Weekly — 52 payments a year
• Accelerated versions of semi-monthly, bi-weekly and weekly

The plain versions are about matching your pay. If you get paid every second Friday, a bi-weekly mortgage payment that comes out a day or two later just makes life easier. Over a year, you pay the same total as you would with monthly payments.

The accelerated versions work differently. With accelerated bi-weekly, you take your monthly payment, cut it in half, and pay that every two weeks. Because there are 26 two-week periods in a year (not 24), you end up making the same as one extra monthly payment each year. That extra money goes straight to your principal — the amount you actually owe.

What that looks like in real dollars

Here's an example on a $300,000 mortgage over 25 years. We used a 4.5% rate only to show the math — your rate will be different, and that's not the point here. Look at how the payment amount and payoff time change.

Example only. Assumes the same rate for the full 25 years, which won't happen in real life since rates change at each renewal. Your broker can run your actual numbers.

In this example, accelerated bi-weekly payments trim more than three years off the mortgage and save roughly $30,000 in interest. The cost is about $140 more per month on average. That's the honest trade-off: you pay a little more now to pay a lot less later.

If that extra amount would stretch your budget too thin, the regular bi-weekly or semi-monthly schedule is still a good choice. You can still speed things up later. First National lets you change your payment date and payment frequency during your term, so you can switch to accelerated payments once things settle down.

2. The 120-Day Rate Hold: Peace of Mind While You Shop

Buying a home takes time. You might be looking for weeks, then waiting 60 or 90 days for closing. If rates go up during that time, your payment goes up too.

A rate hold protects you from that. It's a promise from the lender to keep a set rate for a certain number of days. First National's rate holds on regular purchases are reported at 120 days — about four months. That's in line with what most big lenders in Canada offer.

Here's why this matters for your budget, not just your rate: when you know your rate is protected, you know what your payment will be. You can shop with a real number in mind instead of a guess.

A few other things to know about rate holds:

• They expire. If your closing date is more than 120 days away, the hold won't cover you all the way. Talk to your broker about timing.

3. Small Mortgages Are Possible — Starting Around $50,000

Not everyone needs a big mortgage. Some of our clients only need a small one to bridge a gap. Many lenders aren't interested in small loans because they take the same amount of work as large ones.

According to published lender reviews, First National's minimum on its regular mortgages is $50,000. (Transfers from another lender reportedly start at $75,000.) That opens the door for people who want to keep their borrowing small.

Retirees who are selling but want a small mortgage

This is a situation we see often in London and St. Thomas. You've lived in your home for 25 or 30 years. It's paid off, or close to it. Now you want something smaller — a bungalow, a condo, maybe something closer to family.

You could pay cash for the next home. But some retirees prefer to keep part of their sale money invested or in the bank, and take a small mortgage instead. The reasons vary:

• Keeping cash on hand for travel, health costs or helping family
• Leaving investments in place rather than cashing them out
• Having a cushion for unexpected repairs

For example, on a $75,000 mortgage paid over 10 years, the monthly payment would be about $776 (again using a 4.5% example rate). With accelerated bi-weekly payments of about $388, it would be paid off roughly 11 months sooner.

The good news for retirees: lenders can count your pension income — both public pensions like CPP and OAS and private workplace pensions. Investment income can also count, backed up by your tax returns and current statements.

The trade-off: a mortgage is still debt, and you'll pay interest on it. If the interest you pay is higher than what your savings are earning, you may be better off paying cash. That's a question for your financial advisor as much as your broker. Every situation is different, and there's no single right answer.

4. Buying a Home That Needs Work? Purchase Plus Improvements

Some of the better values in London and St. Thomas are homes that need a little love. Maybe the kitchen is from the 1980s, the windows are drafty, or the basement was never finished. The problem is that most buyers spend all their savings on the down payment and closing costs. There's nothing left for the renovation.

First National's Purchase Plus Improvements program helps with this. It lets you roll the cost of your renovations into your first mortgage. Instead of paying for a new roof with a credit card or a high-interest loan, it's spread out over the life of your mortgage at your mortgage rate.

The key details

• It must be an insured mortgage. That means CMHC (or another insurer) backs the loan, and an insurance premium is added to your mortgage.
• You can borrow up to 95% of the home's value for a one- or two-unit home, or up to 90% for a three- or four-unit home.
• You'll need quotes up front. You must give a list of the improvements, with contractor quotes, when you apply.
• Up to 25 years to pay it off, with all fixed-rate terms or a five-year adjustable rate available.
• It's for purchases. Published lender reviews say First National doesn't offer the same thing on a refinance, so plan for it when you buy.

How the money flows

This is the part that surprises people. You don't get the renovation money on closing day. Here's how it usually works:

1. On closing: First National advances enough to buy the home — up to 95% of the approved value, minus the cost of the improvements.
2. During the renovation: The renovation money is held back, usually in trust with your lawyer.
3. After the work is done: Once the work is confirmed finished — often by an inspection or an appraiser — the held-back money is released.

What that looks like in real dollars

Say you buy a home for $400,000 and get quotes for $30,000 of work: new windows and an updated bathroom. If the home is appraised at $430,000 once the work is done, your minimum down payment would be 5% of $430,000, or $21,500. Your mortgage would be about $408,500 plus the insurance premium. Of that, $30,000 would be held back until the work is finished.

Example only. Your actual amounts depend on the appraisal, the insurer's rules and your broker's numbers.

The trade-offs to plan for

• You may need to pay your contractor first. Because the money is released after the work is done, many buyers have to cover the costs up front or find a contractor willing to wait. Plan for this before you firm up your offer.
• There's usually a deadline. Lenders often expect the work done within about 90 to 120 days. Confirm the timeline with your broker.
• You pay for overruns. If the job costs more than the approved quotes, the extra comes out of your pocket.
• Not every project qualifies. Permanent upgrades like kitchens, bathrooms, roofs, windows and furnaces are typical. Furniture, decor and simple maintenance usually aren't. Ask your broker before you get quotes.

Coming from a construction background, we always tell clients: get detailed, realistic quotes, and build in a cushion. Renovations rarely come in under budget. A good set of quotes also makes your mortgage application stronger.

5. Self-Employed? Lenders Can Look at the Bigger Picture

If you run your own business, you probably know this story. You earn good money, but after business write-offs, the income on your tax return looks small. Many banks only look at that bottom line and say no.

First National has a few ways to look at self-employed income more fully:

The documented route

This is for self-employed borrowers who can show two years of tax returns and Notices of Assessment from the Canada Revenue Agency. Income is averaged over the two years. Depending on the lender, sole proprietors may be able to have some business expenses "added back" to their income. Ask your broker how this works for your situation.

Insured Stated Income

For self-employed buyers who may not be able to show income the traditional way. Key points:

• Purchases only, for a home you'll live in (up to two units)
• Up to 90% of the purchase price can be financed, so as little as 10% down
• You'll need a strong record of paying your bills and at least two years of credit history
• Five-year fixed or adjustable terms, with up to 25 years to pay it off

Conventional Stated Income

For self-employed buyers with a larger down payment. You can finance up to 65% of the price with no mortgage insurance premium. That means at least 35% down. You'll need at least three years of credit history, and the home needs to be in an area where homes resell easily.

The honest trade-off for self-employed buyers: stated income programs can cost more, through higher rates or insurance premiums. They're not right for everyone. But for someone whose tax return doesn't tell the whole story, they can mean the difference between a "no" and a "yes."

6. The Most Important Step: Start Gathering Your Documents Now

If you take one thing away from this post, let it be this: start the paperwork early.

Payment schedules, rate holds and special programs all sound good. But none of them help you until you have an approval. And approvals are built on documents. A good broker can only find you the right option if they can see your whole situation. Missing paperwork is one of the main reasons mortgage files get delayed — or get turned down.

Here's a starting checklist. Your broker will tell you exactly what they need for your situation.

For everyone

• Government-issued photo ID (driver's licence or passport)
• Your most recent Notice of Assessment from the CRA
• Bank statements showing your down payment money for at least the last 90 days
• A list of your debts — car loans, credit cards, lines of credit
• Your current mortgage statement and property tax bill, if you already own a home

If you're employed

• A recent letter of employment showing your position, salary and start date
• Recent pay stubs
• T4 slips, especially if you earn overtime, bonus or commission

If you're self-employed

• Two years of full tax returns (T1 Generals) and Notices of Assessment
• Your Statement of Business Activities (T2125), if you're a sole proprietor
• Two years of accountant-prepared financial statements, if you're incorporated
• Proof that any taxes owing have been paid
• Recent business bank statements

If you're retired

• Pension statements (CPP, OAS and any workplace pension)
• Recent investment statements
• Bank statements showing your pension deposits
• Your agreement of purchase and sale for the home you're selling, if you have one

If you're planning renovations

• A written list of the improvements you plan to make
• Contractor quotes for each item
• Plans or building permits for larger projects, if needed

Starting early also gives you time to fix small problems — an old collection on your credit report, a tax bill you forgot about, a missing pay stub — before they slow things down.

The Bottom Line

The interest rate gets all the attention, but it's not the whole story. Lender programs change often, so always confirm the current details with a licensed mortgage broker before you make plans.

If you're thinking about buying or selling in London, St. Thomas or Strathroy, we'd be happy to talk it through. We can share the names of licensed mortgage brokers our clients have worked with, so you can get your paperwork started and walk into your home search knowing where you stand.

This article is general information only. It is not mortgage, financial, legal or tax advice. Kurtis and Christine Siemens are real estate agents with The Realty Firm Inc., Brokerage. They are not licensed mortgage brokers or agents and are not affiliated with First National Financial LP. Program details come from public sources as of October 2026 and can change at any time. Mortgage approval depends on the lender's review of your application. Please confirm all details with a licensed mortgage professional.