Nesto Mortgage Review May. 2024: Best For Low Rates?
Nesto Mortgage Review Rating: 4.6/5
Before now, applying for a mortgage used to be a time-consuming stressful endeavour due to the endless paperwork involved.
As technology advanced, mortgage application has been simplified as one can now run the entire process online.
Nesto is one of the pioneer fintech companies in Canada that use technology to simplify mortgage access.
As a mortgage provider and broker, Nesto assembles the best mortgage deals in one place, making it easy to compare and choose the suitable deal for your situation.
But is it worth getting a mortgage through Nesto? What are the pros and cons of doing so? What makes Nesto mortgages different from other brokers?
This Nesto mortgage review answers all these questions to help you make an informed decision.
What is Nesto?
Nesto is a Montreal-based mortgage lender and a broker that’s licensed in all the provinces it operates. The brokerage partners with over 1000 mortgage lenders to offer Canadians easy access to the best mortgage deals.
Founded in 2018, Nesto distinguished itself from other mortgage brokers in Canada by utilizing Diagram-backed technology to simplify mortgage access.
With Nesto, you can run through the entire mortgage application process online without commuting to any physical location.
What also distinguished Nesto from the competition is that its licensed mortgage advisors are salaried, not under commission. This allows for unbiased support that protects the interest of clients.
As of the time of writing, Nesto has over 210,000 clients and over 250 mortgage advisors and team members. The company also claims that it processes mortgages worth billions of dollars annually.
Unlike other brokers, Nesto partners with another broker (Loans Canada), to offer potential clients mortgage solutions it doesn’t have. This makes Nesto a more reliable mortgage broker in Canada.
What is Nesto Mortgage and How Does it Work?
Nesto mortgage simply refers to a mortgage available on the Nesto platform. It’s worth noting that Nesto started as a full-fledged broker but it’s now offering its own mortgage products.
That’s, Nesto combines its own mortgages with those of its over 1000 partner mortgage lenders in Canada.
Whether you’re looking to buy a new mortgage or renew or refinance an existing one, you can count on Nesto to get the best deal in Canada.
By partnering with multiple mortgage lenders, Nesto makes it easier to compare and choose from different options in one place. This saves you time and costs in finding a suitable mortgage deal for your situation.
Besides getting access to low mortgage rates, Nesto also cut down your mortgage costs with a 1% cashback on your loan amount. Although the cashback offer is valid for a limited time.
Is Nesto Mortgage Legit?
Nesto mortgage is legit because it is offered by legit lenders including the big banks. Over 210,000 Canadians have entrusted Nesto with their mortgage needs.
Nesto is also a licensed mortgage broker across all the provinces and territories it operates in Canada. Its 250+ commission-free mortgage advisors are licensed professionals with an average of 6+ years of experience in the industry.
In addition, Nesto is backed by Diagram, a multi-industry fintech launchpad with 12 ventures, $1B+ enterprise value and 600+ employees.
With a low mortgage rate guarantee, zero commission and an easy online application process, Nesto mortgages are both legit and reliable.
Nesto Mortgage Key Features
Let’s go over the key features of Nesto mortgage for a better understanding of how it differs from the competition:
1. Low Mortgage Rate Guarantee
Nesto guarantees upfront low mortgage rates to its clients. Once you apply for a mortgage and lock in the rate, you can explore other rate options from the competition within five days.
If you find a better rate, Nesto will match it or beat it. If Nesto can’t do so, it will give you $500 upon buying your mortgage with your chosen lender.
With such a guarantee, Nesto makes itself a unique cost-effective mortgage broker in Canada.
2. Rate Lock
With Nesto mortgage, you can lock in a low mortgage rate for up to 150 days. This is one of the longest holds in Canada.
Reserving a mortgage rate will save you from frequent sudden market surprises that increase rates.
In addition, locking a mortgage interest for up to 150 days will give you enough time to compare different options and make an informed decision.
The interesting part is that Nesto may offer you $500 back if you don’t hold a rate for 150 days. This offer is available for insured mortgages only.
3. Mortgage Calculators
Nesto offers different calculators to save you time in determining how much mortgage you can afford, your monthly mortgage payment amount and mortgage refinancing cost. These tools are:
By using these calculators effectively, you can easily understand the cost of accessing a mortgage product on Nesto as compared to other brokers.
4. Multiple Properties
Nesto offers access to a wide range of mortgage properties making it a one-stop-shop brokerage. The following are the properties you can buy through Nesto:
- House
- Secondary home
- Condo
- Cottage
- Commercial
- Duplex
- Triplex
- Fourplex
With these multiple options, Nesto makes itself more accessible to many Canadians than other brokerages.
5. Commission-Free Mortgage Experts
Finally, Nesto offers access to commission-free mortgage experts that are focused on providing high-quality services to Canadians.
Since there’s no commission involved, you can expect unbiased professional advice from Nesto mortgage advisors.
The same can’t be said of brokerages that pay their advisors through commission.
6. Mortgage Pre-qualification/Pre-approval
If you’re looking for an estimate or definite breakdown of how much mortgage you can take, consider Nesto pre-qualification or pre-approval.
With Nesto mortgage pre-qualification, you will get an estimate on the amount of mortgage you will get from the broker based on your current financial situation.
On the other hand, Nesto mortgage pre-approval gives you a definite breakdown of the amount you can borrow, the interest rate, the payment amount and so on.
If you’re interested in applying for Nesto mortgage pre-qualification or pre-approval, visit the sign-up page here.
Note: Nesto runs a hard pull credit check on mortgage applications for pre-qualification and pre-approval.
Nesto Mortgage Rates
Nesto offers guaranteed low mortgage rates on 2-year to 10-year terms across all the provinces and territories of Canada.
The following are the Nesto mortgage rates across fixed and variable terms as of April 8, 2024.
| Mortgage Term | Mortgage Rate |
| 2-year fixed rate | 5.84% |
| 3-year fixed rate | 5.29% |
| 3-year variable rate | 6.35% |
| 4-year fixed rate | 5.19% |
| 5-year fixed rate | 4.64% |
| 5-year variable rate | 5.90% |
| 7-year fixed rate | 5.64% |
| 10-year fixed rate | 5.74% |
Compared to the rates of other mortgage brokers in Canada, Nesto has some of the most competitive mortgage rates out there.
However, you can lock in a Nesto mortgage for up to 150 days while comparing other mortgage rates. This will help you make a cost-saving decision.
Pros and Cons of Nesto Mortgage
From the above Nesto mortgage review, we can identify the following pros and cons:
Pros
- Guaranteed low-interest rates
- Easy access online
- Multiple mortgage partners
- Rate lock (for up to 150 days)
- Commission-free mortgage advisors
- 1% cashback on your mortgage amount
- Mortgage calculators
Cons
- A partial-mortgage broker (Nesto could be biased by favouring its own mortgage products)
- Not accessible to people with poor credit scores
My Nesto Mortgage Review Rating
I rate Nesto mortgage 4.6 out of 5 stars based on comparative analysis and the total rating of the following features.
Rating Methodology
Overall Rating
Nesto distinguishes itself from other mortgage brokers in Canada by utilizing technology to offer quick access to low-interest mortgages.
As a result, my Nesto mortgage review is positive and recommendable to Canadians looking for low-interest mortgages to buy, renew or refinance.
How to Apply for a New Mortgage on Nesto
Applying for a new mortgage on Nesto takes a few minutes as everything is done online.
All you need is to visit their online application page here and enter your full name, email, password and province.
You will then be redirected to a page where you can select the type of mortgage you want to apply. This could be a new mortgage, mortgage refinancing or mortgage renewal.
Each mortgage application has different requirements you must provide to get Nesto approval.
If the information you provided doesn’t meet the threshold of their lenders, Nesto will refer you to Loans Canada, their trusted partner.
Should you encounter any problem while applying for a mortgage online, kindly call a Nesto representative at 1-833-452-3541 or email them at [email protected].
Nesto Mortgage Rates Compare
The following table shows how Nesto’s 5-year fixed and variable mortgage rates compare as of April 8, 2023:
| Mortgage Provider/Broker | 5-Year Fixed Mortgage Rate | 5-Year Variable Mortgage Rate |
| Nesto | 4.64% | 5.90% |
| Butler Mortgage | 4.69% | 5.95% |
| Alterna Savings | 4.99% | 6.85% |
| Neo Financial | 5.14% | N/A |
From the above table, it’s obvious that Nesto is among the top providers of low fixed and variable mortgage rates in Canada.
Note that the above rates are a mixed of posted, special and insured mortgage rates.
READ ALSO:
- Tangerine Mortgage Preapproval: Does It Exist?
- PC Financial Mortgage vs Simplii Mortgage Rates Comparison
Verdict on Nesto Mortgage Review
That brings us to the end of this Nesto mortgage review. As shown from the foregoing discussion, you can’t go wrong with Nesto mortgages so long as you’re looking for a competitive mortgage rate in Canada.
However, don’t be in a rush to apply for a new Nesto mortgage without comparing other options. Chances are you can get better deals elsewhere by just extending your research.
As a result, I suggest you lock in a mortgage rate on Nesto and compare other options before finalizing. That way, you will be in an advantageous position whether you found a better rate elsewhere or not.
The ball is now on your court to kickstart your home-buying journey. I wish you a safe and cost-effective journey!
FAQs on Nesto Mortgage Reviews
Yes. Nesto does a soft credit check on new mortgage applications and a hard credit check on mortgage pre-qualification and pre-approval. Nesto pulls information both from Equifax and TransUnion.
Nesto doesn’t affect your credit score if you’re applying for a new mortgage. This is because it verifies your information with a soft credit check.
However, Nesto impacts your credit score when you apply for mortgage pre-qualification or pre-approval because it runs a hard credit check.
Nesto mortgages are owned by Nesto and its over 1000 partner lenders including the big banks and other top financial institutions in Canada.
Nesto started as a mortgage broker but it’s now expanding to a mortgage lender, by offering its own mortgage products.
Nesto is a good mortgage company because it offers easy access to guaranteed low-interest mortgage rates. Nesto also distinguished itself by offering a wide range of mortgages, rate locks, mortgage calculators, and commission-free mortgage advisors.
Nesto Mortgage Review
Summary
My Nesto mortgage review is positive and recommendable to Canadians looking for low-interest mortgages to buy, renew or refinance.
