Spring 2025 began at exactly 5:01 am Eastern today. It’s the moment we’ve all been waiting for, particularly since Canada’s housing market typically begins to bloom this time of year.
Whether demand will grow thanks to recent Bank of Canada interest rate reductions or be nipped in the bud by pervasive concerns over revolving tariff threats is an open question that no one can answer yet. What I can say is that First National is prepared for whatever comes our way and we are not ready to discount our prospects for 2025. I share some of the reasons below.
The broker channel is winning!
As a single-family lender that has devoted itself to supporting the broker channel for 37 years, we note with enormous satisfaction that your share of the mortgage market is now nearing 50% (and is even higher with first-time buyers). This is more than just a cause for celebration. Even if the spring market stalls, a higher share naturally provides more opportunity for you, all things being equal.
First National’s fundings are up significantly
Based on mortgage commitments entering the year, First National’s funded mortgages will be higher in the first quarter than last year at this time. We take equal satisfaction in noting that First National’s fundings in the final quarter of 2024 were up by 43% to $6.3 billion with contributions from all regions across Canada led by Alberta. Our own market share performance combined with resurgent activity has served us well.
The past is not always prologue, or is it?
It’s not possible to say with 100% certainty that the trends of the recent past will continue throughout 2025. For the housing market, much depends on employment and the influence of tariffs and tariff threats on business investment and hiring decisions. Economic instability is obviously a concern.
That said, Canadians who feel secure in their jobs have several compelling incentives to move forward, including seven reductions in Bank of Canada interest rates since last June. The price-cap increase for insured mortgages to $1.5 million and the arrival of 30-year mortgage amortizations are other good reasons to jump into the market. We have already seen these developments stimulate activity. It's also important to bear in mind that while the government’s immigration targets are lower, Canada’s population is still growing, and people will always need houses.
Together We Succeed
I believe our mutual success in this environment will depend on our ability to give Canadians what they want, need and cannot find elsewhere: consistently better service from beginning to end.
With more resources than ever, First National is ready to rise to the occasion by being your reliable and trustworthy source of capital, insured and conventional through our Excalibur franchise. As we’ve done in every other market cycle, from the dot-com days through the tariff era, we will continue to lend with a steady hand and a commitment to growing your business and ours.
Together we Succeed is more than just our slogan, it’s an immutable truth and we are reminded of it every time we have the privilege of working with you.
And please remember: our relationship doesn’t have to be confined to dealmaking alone. We are here to offer expert advice, informally and through our popular Education Days. These seminars dive into timely topics and feature third-party industry specialists. To avail yourself of all we have to offer, you only need to ask. I hope you do as the more knowledge we exchange, the stronger we become.
Inspired to perform
We take inspiration from the feedback we get from the brokerage community across Canada. Which leads me to say that we very much appreciate the testimonials we’ve received from many brokers – you can see examples on our website – and recent recognition given to our business (and deserving individuals on our team) in various industry and individual brokerage firm competitions.
To name just a few, First National was chosen Mortgage Finance Company of the Year (2024 Mortgage Awards of Excellence); Isabel Eydlin and Sabrina Greig were each honoured at the 2024 Canadian Mortgage Awards as Business Development Manager of the Year, Alternative and Prime Lending, respectively; and Elena Robinson was named a CMP Woman of Influence for the fifth year in a row. Although 2025 is just over two months old, three more awards for underwriting and sales have arrived, a great way to start the year. We are determined to build on this winning track record.
First National is open for business, proudly all Canadian, and ready to do our very best for you and your clients this spring.
With thanks,
Scott McKenzie
Executive Vice President