Season's Greetings and thank you from your First National team in Ontario

As we close out another year, I want to take this moment to sincerely thank you for choosing First National as your financing partner. We very much appreciate your business, the opportunity to support your growth and the chance to share our perspectives with you.

To that end, I’m pleased to say that our 2025 annual loan volumes in Ontario are on track to equal 2024 levels. Given the economic backdrop, this is a positive outcome, attributable to the resiliency of the multi-unit marketplace and the can-do attitude of our clients and our teams.

In retrospect, the year had its challenges. In the GTA, rental rates moved lower. Cuts to foreign student acceptances made for a difficult year in Kitchener-Waterloo’s rental market. There were also bright spots with relatively strong activity in Kingston, Ottawa and in Windsor where rental rates grew year over year.

Being present in these and many other urban centres in Ontario and across Canada is an important advantage for First National that will fuel our growth ambitions going forward.

An optimistic outlook

It’s too early to offer a definitive forecast for 2026. However, there are reasons for optimism:

• In the GTA, construction costs are now 10 to 20% lower than they were, which will provide a tailwind for new construction activity.
• Governments at all levels appear to be more aligned than ever in recognizing the need for more rental housing and we are hopeful that this will translate to more supportive policies. 
• The recently announced $20 billion increase in the Canada Mortgage Bond program will bolster the supply of capital to the multi-unit housing industry in 2026.
• CMHC’s recent change to the Rental Achievement Holdback criteria for MLI Select demonstrates that they are listening and leading the way with a renewed risk-on approach.
• Interest rates are lower than they’ve been for some time.

On balance, we are planning for growth in 2026 and will actively (and fiercely) pursue it. Having added to our resources in 2025 – including welcoming the return of several younger members of our team – we are well positioned to meet the demands of growth.

We’re also determined to bring you more financing options, including conventional loans for all asset types through our new brokerage service. This expansion of our Better Lending mandate enables us to serve you at the portfolio level, not just on a transactional basis.

Our team is committed and energized and we look forward to bringing our best to you in 2026. And with that, I wish you all the best of the holiday season and a very prosperous 2026.

Yours sincerely,

Scott Mizzen

Vice President, Commercial Financing, Ontario