Nesto Review (October 2022): Pros, Cons, Features, & Pricing

Mortgages, and all of the hassles that come with them are something that many people have to contend with daily. Not only do you typically have to deal with a financial institution and a lengthy application just to get one, it’s hard to know which places are offering the best rates because most financial institutions aren’t transparent about their rates online, and make you come in for a consultation before they’ll talk about rates with you.

But, Nesto aims to change all of that. They market themselves as providing the lowest mortgage rates in the country for Canadians. But do their services live up to the hype? We’ll tell you everything you need to know in our Nesto review.

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Last Updated: Sep 28, 2022

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What is Nesto?

If you’ve never heard of Nesto and you’re here reading our Nesto review, then this is the most important question we could answer.

Nesto is a Canadian digital mortgage solution that claims to be 100% free. They attempt to make the mortgage process easier to get through. They also try to streamline the entire process, from start to finish, so that you don’t encounter parts of the process that are more of a headache than others. And, without negotiating with a loan officer, they’ll provide you with the best rates for your personal situation.

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About Nesto

Many people feel it’s necessary to know about a company before doing business with them. So, it’s even more vital to know about a company that’s helping you find a mortgage, which is why we’re going to tell you a bit about Nesto in our Nesto review.

Nesto was created by Diagram, which is a company that deals in insurance, healthcare and financial services companies. They’ve got a good reputation for being an experienced investor that knows which companies to back for long-term success. They’ve helped lots of companies to launch their businesses in Canada and provided them with the financial backing to expand to global operations.

We also found while writing this Nesto review that Diagram is financially backed by Portag3. Portag3 is one of the biggest Fintech companies in existence. For those who don’t know, “Fintech” is a mashup of the words “financial” and “technology” and it refers to financial service companies that integrate technology into their services, or primarily use technology to provide their services.

We found in research for this Nesto review that in June 2021, Nesto announced that they’d raised $76,000,000 in Series B funding which allowed them to accelerate their technological goals and hire more people to their team to improve their services. Some of the companies behind this backing include Diagram, Portag3, and Breyer Capital.

What Products Does Nesto Offer?

We found while writing our Nesto review that Nesto doesn’t really offer any products or services that the other mortgage brokerage companies in Canada are offering. The real distinction is Nesto’s rates and the fact that you can get through their streamlined process more quickly.

Nesto Tablet - Comparewise

How Does Nesto Offer Low Rates?

How is Nesto able to offer some of the lowest mortgage rates in the industry? We initially wondered this while writing our Nesto review, as well. They can do it largely because they utilize a commission-free process, and the result is low rates for their customers.

The only way to get customers the lowest rate possible is for a broker or mortgage specialist to give up their commission, and most simply aren’t willing to do so. But, Nesto is.

Who Should Choose Nesto?

If you’re reading our Nesto review and wondering if Nesto is right for you, don’t worry. We’ve got you covered. We’ll tell you exactly who should use Nesto.

Anyone who values transparency

Most banks and financial institutions will only give you access to rates based on their products and services. But we found in our Nesto review that Nesto provides you with rates from more than 10 lenders, which include several large banks.

Anyone looking for great rates

If you’re looking for good mortgage rates, you can’t do better than Nesto. Their advisors work with you for free (rather than charging the commission fees that banks do) and provide you with great rates without you having to negotiate to get them. Because it’s such an important purchase, we found out while reading about Nesto for our Nesto review that they don’t feel you should have to pay high premiums for it.

Anyone who desires an efficient process

You can complete the entire mortgage process online with Nesto. This is a major perk that we wanted to point out in our Nesto review, sometimes online interactions are not only convenient but necessary. Their online application process is easy, and you can do it all from home in your pajamas if you prefer.

Nesto Review Mortgage - Comparewise

How Does Nesto Make Money if it Doesn’t Charge Commission?

You’re probably reading our Nesto review and wondering how in the world Nesto makes money if it doesn’t charge commission fees. Don’t worry, we found the answer!

Their primary form of income comes from their lending partners. Lending partners pay Nesto to provide them with customers which they wouldn’t have acquired without Nesto’s services. It’s a win-win situation for both Nesto and the lending partners because Nesto makes money while giving their customers the best rates, and the lending partners get new customers.

Nesto admits that it doesn’t make as much money as most mortgage specialists or brokers because of this, but they truly feel that it’s worth it to ensure that customers get the best mortgage rates possible.

How Nesto Chooses Lending Partners

Of course if a company admits that it allows other businesses to pay them to send customers their way, it’s a good idea to find out how they choose these lending partners.

They say they in interviews we read for our Nesto review that they screen lending partners to find the ones with values that are similar to theirs and want to provide customers with the best rates. They also look for providers that have quality services that they can be proud to offer Nesto customers. The products on Nesto’s site are listed from lowest to highest rates, and they don’t make exceptions to that rule- regardless of their partnership with other companies.

Since the lowest rate doesn’t always provide the best mortgage package, they take that into account and analyze your mortgage application to provide you with the best mortgage package and the best rate to meet your own personal needs.

Nesto Mobile - Comparewise

What You Should Expect from the Application Process

We felt that this was an important bit of information to include in our Nesto review, because many people will want to know what it’s like to go through the application process with Nesto. Just because someone says it’s easy doesn’t necessarily mean that you’ll think it’s easy for you, does it? Here’s a more detailed explanation of the application process.

First, you should know that the application process involves filling out forms online. This is much easier and quicker than filling out paperwork at a bank. You’ll be asked questions about your identity, as well as your finances. We found while researching for our Nesto review that the application process is designed to give Nesto’s lending partners a comprehensive look at your employment, financial and credit situation so that you’ll get the best mortgage rates.

The questions will differ based on your answers, and other factors, such as whether you’re purchasing a new home or renewing a current mortgage. Therefore, since the questions change and are personalized based on your answers, we can’t tell you in our Nesto review what questions you may be asked.

What’s Next After You Submit Your Application?

So, you’ve went through the entire application process, answered all of the questions and provided Nesto with all of the necessary documents. What happens next?

After all of that you’ll get an email that contains information about booking a call from a Nesto agent. The agent will verify the information in your application, provide you with information about mortgages and walk you through the next steps you’ll go through with Nesto.

Nesto Desktop - Comparewise

Documents You’ll Need

You’ve probably been reading our Nesto review and wondering how you’ll know which documents you’ll need to complete the mortgage application process, and that’s a fair question to ask. There is actually a document list that will be generated and customized based on the answers you provide on your mortgage application.

Each borrower profile or transaction type has a set of required documents assigned to it, and your online application is all it takes to determine which documents you’ll need to complete the application.

Does Nesto Provide More Than One Lending Option?

Reading this Nesto review may seem confusing when it comes to the number of lending options that Nesto actually provides. Of course, they’ll provide you with the best rate possible for you, but that doesn’t mean that you’ll only get one option.

Every customer that goes through the application process is presented with at least 3 options. The first option will be your best rate, while the second will be the second-best rate, and somewhere on the list you’ll find a well-known bank option with a name you’re sure to recognize. Nesto has access to over 1000 different lenders, so it’s hard to tell which options they’ll provide you with, but it’s pretty safe to say that you’ll wind up with great rates.

From there, if you follow all of the instructions provided by the app and the Nesto agent that contacts you, the process of inquiry and mortgage approval can take less than 24 hours.

Canadian Home- Buying Trends

While we were doing research for our Nesto review, we found that there have been some interesting new Canadian home-buying trends within the past couple of years. The Covid-19 pandemic has caused a lot of hardship for many people, so it’s changed the buying market.

The biggest change is that most home-buyers are eager to buy and move into their homes immediately. This has changed because buying a house while it was in construction and moving in after it was completed had been the norm. Another trend is that the average Canadian home buyer is more savvy and cautious, which means they’re making lower down-payments and getting targeted purchase prices.

Nesto Mortgage Banner - Comparewise

Nesto Mortgage Rates

One of the biggest factors in the decision to use Nesto is whether their rates are really as low as they claim. There’s no real way to find out how low the rates they’ll quote you will be, but they do list a number of rates on their website. This sort of transparency in a mortgage solution company is refreshing, so we wanted to include it in our Nesto review. Here’s some of the rates that Nesto advertises:

Nesto Rates

Mortgage TypeNesto Mortgage Rate
3-year fixed rate4.54%
4-year fixed rate4.69%
5-year fixed rate4.69%
5-year variable rate3.45%

Nesto Review Conclusion

Choosing the right mortgage for you can impact your financial future, so it’s an important decision that shouldn’t be taken lightly. Finding the lowest rate can be difficult, but Nesto goes out of its way to ensure that they provide the lowest rates around.

We found in our Nesto review that choosing Nesto for your mortgage needs makes a lot of sense to most people due in part to their low rates, but also because of their easy and streamlined application process. When you add to all of that the fact that they provide you with a number of lending options, Nesto really sets itself apart from the crowd.

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FAQs about Nesto

What is Nesto?

Nesto is a Canadian digital mortgage solution that claims to be 100% free. They attempt to make the mortgage process easier to get through. They also try to streamline the entire process, from start to finish, so that you don’t encounter parts of the process that are more of a headache than others. And, without negotiating with a loan officer, they’ll provide you with the best rates for your personal situation.

What services does Nesto offer?

We found while writing our Nesto review that Nesto doesn’t really offer any products or services that the other mortgage brokerage companies in Canada are offering. The real distinction is Nesto’s rates and the fact that you can get through their streamlined process more quickly.

Who should use Nesto?

Nesto is great for anyone who is looking to have the most transparent and efficient mortgage process that ends with you getting the best rate.

How much does Nesto cost?

Nesto's services are free to the user. Nesto admits that it doesn’t make as much money as most mortgage specialists or brokers because of this, but they truly feel that it’s worth it to ensure that customers get the best mortgage rates possible.

March 1, 2022
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