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First National's new Self-Insured Mortgage drives down the cost of owning a home
Low-cost option to mortgage insurance means more savings for Canadians
VANCOUVER BRITISH COLUMBIA June 5, 2007 - First National Financial LP, the largest non-bank
provider of single-family residential and commercial mortgages in Canada,
today launched its Self-Insured Mortgage, a new mortgage solution to save
qualifying home buyers money by offering a low-cost option to mortgage
insurance in Canada.
With a First National Self-Insured Mortgage, qualifying home buyers can
shave 0.40 per cent off the one-time mortgage insurance payment. This is
possible because First National self-insures its mortgages through
securitization structures and other credit enhancement techniques. This
enables the company to pass the cost-savings on to home buyers through an
unprecedented low premium rate. The First National Self-Insured Mortgage is
tailored to Canadians whose down payment is five per cent of the purchase
price of their desired home and, consequently, most lenders require by law
that the mortgage be insured by a third-party insurer.
"First National prides itself on offering Canadians choice, flexibility
and service excellence when they are considering a mortgage," said Stephen
Smith, Chairman and President, First National Financial LP. "The First
National Self-Insured Mortgage is a natural evolution of this commitment,
enabling first-time buyers and other price-sensitive customers to get into the
home of their dreams and save money."
"On a 0,000 mortgage, for example, qualifying home buyers with a First
National Self-Insured Mortgage will save ,000 more than they would if they
obtained their mortgage through a lender requiring mortgage insurance,"
explained Smith.
"The First National Self-Insured Mortgage is an exciting option for
cost-conscious home buyers because it brings down their one-time costs while
saving them money throughout the course of the mortgage term," said Michael
Beckette, President and CEO of Mortgage Alliance/MPH, Canada's largest
independent mortgage brokerage. "It's a perfect complement to First National's
portfolio of mortgage products, offering consumers more choice and helping put
home ownership within easier reach."
First National's Self-Insured Mortgage, like its numerous other
innovative mortgage solutions, is distributed through more than 5,000 mortgage
brokers across Canada.
"Mortgage brokers are the most effective one-stop resource for analyzing
a consumer's specific needs and recommending the most suitable mortgage
solution to meet those needs," said Smith.
Canadians wishing to secure a First National mortgage should consult a
mortgage broker for full details.
About First National Financial LP
First National Financial LP is a Canadian-based originator, underwriter
and servicer of predominantly prime residential (single family and multi-unit)
and commercial mortgages. With more than billion in mortgages under
administration, First National is Canada's largest non-bank originator and
underwriter of residential mortgages and is among the top three in market
share in the growing mortgage broker distribution channel. For more
information, please visit www.firstnational.ca.
MyMortgageBC.com note: This another good development for people looking for a mortgage because it's another option that will help save them money. Hopefully other mortgage lenders won't be far behind in reducing their insurance fees.
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