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header-Answers to all your mortgage questions – FAQ

About nesto

  • What is nesto and what can nesto provide me?

    nesto is Canada’s first digital mortgage platform. We are a Canadian company with advisors from across the country and a head office in the old port of Montreal, Quebec.

    nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish.

    Powered by the most advanced technology, we screen the whole market in seconds to find the lowest rates while our commission-free experts provide you with unbiased support and advice along the process.

  • Who are the people behind nesto?

    While nesto is Canada’s first digital mortgage brokerage, it is above all else built by people in this beautiful country we call home! We’re very proud to have a growing team of bright individuals who keep the engine running, and our rates low!

  • How can nesto offer better rates?

    Did you know that mortgage rates are sold at a premium? Simply put, all brokers and bank mortgage specialists have wiggle room when it comes to the mortgage rates they offer you.

    For the same mortgage product from any institution, there are usually 3 types of rates :

     

    • A floor rate: the absolute minimum rate the bank is able to offer a given client.
    • A middle rate: the rate you will likely be offered first – not great, not too bad either. Brokers and mortgage specialists will usually offer this first, and hope that you accept it without much thought. 
    • A high rate: this is what is posted on bank websites. They will never offer you this rate, but it’s the one they will use against you to calculate your penalty if you happen to break your mortgage.

     

    In order to offer you the floor rate, a broker or mortgage specialist would have to give away a portion, or all of, their commission. Few are willing to go there… Hence why you normally have to go bank-to-bank, broker-to-broker to finally get to the floor rate.

     

    At nesto, we believe in offering you the floor rate from the start. It’s the most important purchase of your life, why should you have to pay a premium for it?

     

    Yes, nesto makes less than the average broker or mortgage specialist, but we also get the peace of mind knowing that we helped you save thousands of dollars on your mortgage. We feel pretty good about this 🙂

  • How is nesto different from a broker?

    There are 3 main differences between nesto and traditional brokers.

    1. nesto believes in full transparency. That’s why we give you direct access to compare rates from 10+ lenders, including rates from banks such as Scotiabank, TD, etc.
    2. Our advisors do not work on commission. Their only incentive is to get you the best mortgage possible. We negotiated a lower finder’s fee payable by our lenders in order to offer our clients the absolute best rates up front.
    3. We are directly connected with lenders, and allow you to complete your application online completely. It’s a first in Canada
  • How is nesto different from a bank?

    There are 3 main differences between nesto and a bank.

    1. A bank requires you to negotiate the rate against their trained specialists while nesto offers the best rate available for any desired product/lender we work with up front.
    2. Our advisors have a salary and do not work on commission. Their only incentive is to get you the best mortgage possible.
    3. nesto will get your mortgage faster, with a better experience. We are directly connected with lenders, and allow you to complete your application online completely. It’s a first in Canada.
  • Is nesto free?

    nesto is absolutely free! nesto’s revenue comes from our lending partners, they pay nesto directly for each mortgage funded in exchange for helping them acquire customers

  • How does nesto make money?

    We believe in transparency, for each successful mortgage funded, lenders give nesto a finder’s fee. Our digital model is attractive to lenders, because leveraging a platform like nesto is much less expensive than using their traditional channels to acquire new clients (think of branch visits, meetings with mortgage specialists, faxes, paperwork, etc.).

     

    We tailored our agreement so that lenders offer our clients the absolute best rates, and in exchange, nesto receives for a small finder’s fee. In short, this means that for any given transaction, lenders are paying less than the traditional broker or specialist commission, and these savings are passed back onto our nesto clients

  • Is nesto allowed to sell mortgages online?

    Indeed, we are. For each province in which we operate, nesto is licensed by the provincial regulatory body and our mortgage advisors are all licensed professionals.

  • Does nesto pay for my penalty fees if I break my mortgage to transfer with nesto?

    Neither nesto nor the lenders will cover payment penalties for breaking an existing mortgage contract; however depending on the details of your current mortgage, it may still be that the savings made by switching to a lower rate are advantageous over these fees. Your nesto advisor can help evaluate whether those penalties are worth the returns.

  • Can nesto help an applicant with poor credit / a consumer proposal or who has filed for bankruptcy in the past?

    Our lenders have strict lending guidelines that require a minimum credit score of 680 and no recent missed payments. 

     

    nesto is not able to assist in situations with a previous consumer proposal or bankruptcy at this time.

  • What types of properties does nesto consider?

    Can nesto finance residential properties?

     

    Although nesto may not be able to help finance alternative properties such as commercial properties, nesto can definitely help with prime residential mortgages (4 doors or less)!

     

    Can nesto finance rental properties? 

     

    While our lending partners are unable to issue a pre-approval certificate for rental property purchases, we can certainly help finance them at best rates once you find the home you love. 

     

    Can nesto finance alternative cases such as mobile homes, auto-construction or self-build projects and/or land purchases? 

     

    Our lenders are unable to finance these types of situations.

    Please note: an Auto-Construction/Self-Build is essentially owning the land and building a home by yourself or hiring a contractor to build it for you. Not to be confused with a purchase of a new “key-in-hand” house, where standard financing applies.

About nesto’s lending partners

  • Who are the lenders on the nesto platform?

    nesto gives access to over 10+ lenders. Our lenders include TD Bank, Scotiabank, First National Financial, MCAP Financial, Equitable Bank, ICICI Bank, CMLS Financial, Merix Financial, Lendwise, and many more.

  • There are a few lenders here I don’t know? Who are they?

    It’s probable that you’ve never heard of names such as MCAP, First National or Merix. These lenders are financial institutions that are solely focused on mortgages and are often referred to Mortgage Financing Companies.  Most of these lenders are backed by Canada’s largest financial institutions, including our very own big banks.

  • nesto offers rates from my bank. Why would I use an intermediary when I can go directly to my bank?

    You may have noticed, banks are not always champions of efficiency or transparency. You will commonly encounter lengthy processes, paperwork, in-person meetings, branch visits, etc. All these costs add up. Between the bank’s overhead costs, and a borrower’s opportunity cost, the traditional process is needlessly expensive. 

    That’s why most banks rely on mortgage brokers to distribute their products. It’s a simple and efficient way to ‘outsource’ the effort. It may seem counterintuitive, but it is actually quite expensive for a bank to offer you a mortgage, and then make sure you qualify for it.

    nesto takes the idea of a mortgage broker to another level with its technology-first approach. The efficiency we all gain through our technology translates into better rates for you!

Filling out a nesto online mortgage application

  • Who do I contact if I have issues while filling out the nesto application?

    If you experience issues while filling out the online mortgage application, please contact support at support@nesto.ca or call at 1-877-660-4432.

  • What are the steps I need to take in order to speak with an advisor at nesto?

    Great news, if you’re looking for a pre approval, our online mortgage platform will allow you to complete the entire process virtually, meaning you can get pre approved quickly without sitting on hold on the phone. Here’s the link to get your pre approval!

    Of course if you’ve found the perfect property and you’re shopping for a rate, the next step once you’ve completed your online application would be to speak with a mortgage advisor in order to lock in the best rates.

    *Our services are 💯  free with no obligation

  • Why do I need to complete the online mortgage application?

    The online form allows us to collect all the relevant information on your specific situation. This way we can confirm the exact rates available to you. Our application is designed to save you time and get quoted the rate that applies to your situation.

  • If I fill out the online mortgage application, will it affect my credit score?

    When the application is submitted for a new mortgage, refinance or a renewal, a soft pull (credit check) may be completed and it has no impact on your credit score. For all transactions with the exception of the online pre-approval, a hard pull (credit check) is only done when you speak with an advisor and decide to proceed with nesto.

    When you complete an online mortgage application for a pre approval, as stated in the application, we will need to do a hard pull credit check in order to qualify you amongst our lenders.

  • If I switch/transfer my mortgage, will nesto cover the notary and transfer fees?

    In most cases, the notary fees/closing costs for a transfer are paid for by the new lender. The primary exception to this is if your existing mortgage is a collateral charge. An example of a collateral charge mortgage is a mortgage with both amortized amount as well as a home equity line of credit portion within the same mortgage charge.

  • How long can I lock in a rate for? What does “lock in a rate” even mean?

    Locking in the rate simply means reserving a rate. Reserving a rate is the amount of time a lender can guarantee a loan’s interest rate. nesto can lock in a rate for up to 120 days. 

    If you are outside the 120 day window, use our mortgage affordability calculator to better understand your borrowing capacity and potential budget.

  • I am a newcomer to Canada, can nesto help me?

    nesto may be able to help with a mortgage, depending if you are eligible under a specialized New to Canada Program to purchase a property with as little as a 5% down payment.

Managing your nesto application & account settings

  • How do I cancel my application?

    Started an application but not ready to apply just yet? Rest assured you can cancel your application by sending us a quick email at support@nesto.ca.

  • How do I reschedule or cancel my advisor call?

    Last minute change of plans? No worries, there are two options to reschedule or cancel your advisor call.

    1. Within the calendar invite sent via email, you should see an option to reschedule or cancel your call with an advisor.
    2. Contact support at least  24 hours prior to your call at +1-877-660-4432 or by sending an email at support@nesto.ca. Our support team will be sure to process your request!
  • How do I unsubscribe from email/sms communications?

    You can unsubscribe at any time! You can either do this by editing your communication preferences directly in the profile section of your application to exclude email and/or sms communications or alternatively you can select unsubscribe at the very bottom of any email received from nesto.

  • How do I reset my forgotten password?

    If you would like to reset your password, you can do so by visiting the login page at nesto.ca and simply select forgot your password.

    You will be given instructions to create a new password which will be sent to you by email. *Please make sure to verify in your spam inbox if ever you can’t find it in your emails.

  • How do I modify my email address?

    Due to security and confidentiality reasons nesto is unable to modify the email initially used to create the application. If your email has been discontinued, we would suggest filling out a new online mortgage application with your new email address

Account privacy

  • What is nesto’s privacy policy?

    The privacy policy describes how we collect, use, disclose and otherwise process your personal information, how we protect it and the controls you have over it. For more information, check out our privacy policy page: https://www.nesto.ca/privacy-policy/

  • How do I delete my data and/or my application on your website?

    Please contact the support team by sending an email to support@nesto.ca or by calling at 1-877-660-4432. 

    Our customer support team will forward your request to our IT department; note that this can take up to 2 weeks from receiving your request to be processed.

General Questions

  • What is a mortgage?

    A mortgage is a legal document you sign when you buy or refinance a home or other types of properties. The term mortgage also refers to the home loan itself, which is secured against the property. A mortgage is typically a large loan that’s paid off over several years.

    For more information, please visit our article about the mortgage approval process.

  • What is the difference between a renewal and a refinance?

    A renewal normally occurs once your mortgage term date comes to an end and you have still not fully paid off the mortgage loan. Sometimes a borrower would renew early in favour of lower rates. Renewing with your current lender means you are accepting new terms, on the same money borrowed. Renewing with a new lender means that you are paying off the existing balance, with a new mortgage and no increase in the amount borrowed, or the remaining amortization. 

     

    A refinance typically occurs when taking equity out of your home to consolidate debt, fund renovations, or purchase another property. A refinance can also occur when you extend your amortization to opt for lower payments.  Refinance rates are often slightly higher than renewal rates.

  • How much of a down payment do I need to secure a mortgage in Canada?

    The minimum down payment when buying a home in Canada is 5% of the purchase price, however if you can make a larger down payment than the minimum requirement, your mortgage payments will be lower and it will take you less time to pay off your mortgage. 

    For further information on down payment requirements, please check out nesto’s article on down payments.

  • When can I start shopping for my mortgage renewal?

    You can start shopping around for a mortgage renewal as early as 120 days before your maturity date. That way nesto can lock in the rate that best suits your needs. Your current lender may be able to offer a renewal prior to the 120 day window, but those offers are rarely attractive give no other lenders can compete for your mortgage. It is recommended to wait to be in the 120 day window.

  • What is HELOC and does nesto offer it?

    Yes, nesto offers a HELOC. HELOC stands for “Home Equity Line Of Credit”. A HELOC provides access to a large sum of money – particularly if you have a lot of equity built up in your home – without affecting your existing mortgage. A HELOC allows you to maintain your existing mortgage and simply take out a loan using the home’s equity as collateral. 

    For more information, please consult nesto’s blog on HELOCS.

Careers

  • What career opportunities are there at nesto?

    nesto is always looking for bright new minds to join the team! If you are interested in being a part of a growing and thriving company culture, please consult our careers page and apply using our online form to connect with our talent recruitment team and for more information on current opportunities.

  • I just finished my mortgage broker exam, how do I apply for a career at nesto?

    For more information about nesto’s career opportunities for mortgage brokers, please visit our mortgage advisor’s careers page. Once you apply online, our recruitment team will get in touch should they consider your candidacy.