First National CEO to Retire After Landmark Go-Private Deal

TORONTO, ON – March 12, 2026 – First National Financial Corporation, Canada's largest non-bank mortgage company, is preparing for a significant leadership transition following the announcement that President and Chief Executive Officer Jason Ellis will retire by the end of 2026. The news marks the end of a transformative 22-year career for Ellis, who guided the company through exponential growth and its recent shift from a public entity to a privately held powerhouse.

The departure comes just over a year after First National completed a landmark $2.9 billion go-private transaction, placing the company under new majority ownership. The Board of Directors has launched a comprehensive search for a successor who will be tasked with navigating a complex Canadian mortgage market and steering the company in its new chapter. Mr. Ellis will remain at the helm during the search and has agreed to serve in an advisory capacity afterward to ensure a smooth transition.

A Legacy of Monumental Growth

Jason Ellis’s career is intrinsically woven into the fabric of First National's modern history. When he joined in 2004 as Director of Capital Markets, the company was a rising player with just over $10 billion in mortgages under administration (MUA). Today, that figure stands at a staggering $165 billion, a testament to the strategic direction and operational execution he helped champion.

Over two decades, Ellis ascended through a series of senior leadership positions, including Chief Operating Officer in 2018 and President in 2019, before being appointed CEO in January 2022, succeeding founding shareholder Stephen Smith. His tenure saw him play a central role in the company's most defining moments. He was instrumental during First National's 2006 initial public offering (IPO), a move that fueled its expansion as a public company for nearly two decades.

In his own words, Ellis feels his journey has come full circle. "Having been part of both our IPO and, nearly two decades later, the successful go-private transaction, I feel that my journey with First National has come full circle," he stated in the official announcement. "I joined the Company at a pivotal moment in its early growth, and I have had the privilege of having a front-row seat to the evolution of a truly great Canadian business."

Moray Tawse, Chairman of the Board, lauded Ellis's contributions. "Jason has made an enormous contribution to First National over more than two decades," Tawse commented. "From his early leadership in capital markets through to his stewardship as CEO, he has helped guide the Company through periods of significant growth and transformation. We are grateful for his leadership, his integrity, and his unwavering commitment to First National's people and culture."

A New Chapter Under Private Ownership

The leadership transition is set against the backdrop of First National's most significant corporate restructuring in recent memory. On October 22, 2025, a consortium led by private equity giants Birch Hill Equity Partners and Brookfield Asset Management acquired the company, taking it private. While founders Stephen Smith and Moray Tawse each retained an indirect approximate 19% interest, the deal placed majority control in new hands.

This privatization fundamentally alters the landscape for the next CEO. Freed from the quarterly reporting pressures and market scrutiny of a public company, the new leader will have the latitude to pursue a more long-term strategic vision. However, they will be accountable to a concentrated group of sophisticated financial owners with high expectations for growth and performance. The move suggests a strategic belief by Birch Hill and Brookfield in the resilience and potential of First National's business model, even amidst market headwinds.

In the announcement, Ellis expressed his confidence in the company's future under this new structure. "With the steady hands of Stephen and Moray, our remarkable leadership team, and the resources and energy of our investing partners at Birch Hill and Brookfield, the Company is exceptionally well positioned to maintain its momentum," he said.

Navigating a Shifting Mortgage Landscape

The next leader of First National will inherit a Canadian mortgage market vastly different from the low-rate environment of years past. While the Bank of Canada's policy rate is expected to hold steady at 2.25% for much of 2026, some economic forecasts anticipate potential rate hikes by late 2026 or early 2027. This creates an environment of uncertainty for borrowers and lenders alike.

A more immediate challenge is the wave of mortgage renewals. A significant portion of Canadian homeowners—approximately one-third—who secured low-rate five-year fixed mortgages during the pandemic are set for renewal in 2026. These borrowers could face an average payment increase of around 20%, a potential shock that could impact consumer spending and housing market stability.

At the same time, overall housing demand is projected to remain below historical averages. High carrying costs, elevated price-to-income ratios, and lingering economic uncertainty are expected to keep many prospective buyers on the sidelines. While some regional sales activity may see a temporary rebound, new housing starts are forecast to decline through 2028, constrained by high construction costs and rising inventories of unsold units, particularly in the condominium sector.

The Regulatory Gauntlet and Strategic Imperatives

Adding another layer of complexity for the incoming CEO is a tightening regulatory environment. Starting in 2026, the Office of the Superintendent of Financial Institutions (OSFI) is implementing stricter lending rules that will directly impact how investors qualify for mortgages on income-producing properties. The new regulations will prevent the "double-counting" of personal income for multiple properties and require lenders to hold more capital against these higher-risk loans. This will likely reduce leverage and increase financing costs for real estate investors, a key market segment for non-bank lenders.

Furthermore, the federal government's extension of the ban on residential property purchases by non-Canadians continues to aim at curbing speculative demand. For a major player like First National, which thrives on its relationships with mortgage brokers and institutional partners, navigating this evolving regulatory gauntlet will be paramount.

The search for Jason Ellis's successor is therefore not just about finding a new CEO, but about identifying a leader capable of steering a newly private company through a period of significant market and regulatory change. The board's choice will signal the future strategic direction for one of Canada's most important financial institutions outside the traditional banking sector.