By now, you have read about the Federal Government’s new mortgage rules and the corresponding reaction in the national media.
You may wonder what these changes mean for you and your relationship with First National. Here are the facts.
First, there is no impact whatsoever to First National’s commercial lending operations. It is entirely business as usual. As Canada’s single largest commercial lender, with a variety of funding sources, First National will continue to provide all of the same commercial lending services you have come to expect.
Second, there has been no change to First National’s substantial and steady access to capital to fund our commercial and multi-residential lending programs including CMHC insured lending on apartment properties. The Government’s changes to date have focused on single family lending which includes rental buildings with four units or less.
Third, we expect to surpass last year’s $4.4 billion of total commercial originations that include $2.7 billion of CMHC insured mortgage fundings – in 2016. The growth trajectory that has made First National Canada’s largest CMHC multi-residential lender and largest commercial mortgage lender will, in our view, continue for the foreseeable future.
We will continue to monitor the Government’s policy directions and update you as appropriate. In the meantime, we invite you to link to the press release we issued earlier this week that explains how the rule changes affect our single family lending business.
Should you have any questions about this letter, our press release or the Government’s policy changes, please contact your account manager.
As always, we are open for business and ready to serve you.