Question 1

What is nesto?

Accepted Answer

nesto is a mortgage brokerage firm founded in 2018 in Montreal. The platform offers a fully digital application process and commission-free brokers. Its technology analyzes the market in seconds to find the lowest mortgage rates based on your situation. nesto’s mortgage experts are licensed in all Canadian provinces. In June 2024, nesto acquired the CMLS Group to strengthen its offering.

Question 2

Is nesto authorized to sell mortgages online?

Accepted Answer

Yes. The nesto firm is licensed by the regulator in each province where it operates. nesto mortgage advisors are licensed professionals. For example, in Quebec, Nesto Inc.   is accredited by the Autorité des marchés financiers (AMF). In addition, nesto mortgage brokers are licensed by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ).

Question 3

What are the best current mortgage rates at nesto?

Accepted Answer

In May 2026, the best 5-year insured fixed rate at nesto is 4.14%. The best 5-year insured variable rate is 3.40% (prime rate minus 1.05%). Banks’ prime rate is 4.45%, and the Bank of Canada policy rate is 2.25%. Rates change regularly—check the latest rates directly on the nesto portal.

Question 4

What is the difference between a mortgage broker and a mortgage lender?

Accepted Answer

A mortgage broker is a professional who negotiates the best mortgage for a client by comparing offers from multiple lenders (banks, credit unions, finance companies). They act as an intermediary between the borrower and the lender. A mortgage lender, on the other hand, is a financial institution that offers mortgage products directly to borrowers. Offers are therefore limited to that institution’s products. Since acquiring CMLS in 2024, nesto combines both roles.

Question 5

What is a mortgage rate?

Accepted Answer

A mortgage rate is the interest rate (for example, 4.14%) that you pay on the balance of your mortgage loan over the term of the loan (for example, 5 years). The rate is determined by several factors: your credit score, income, and the loan’s characteristics (type, term, prepayment capacity, etc.).

Question 6

How do you compare mortgage rates in Canada?

Accepted Answer

To compare mortgage rates in Canada, you need to compare similar offers. Loan features vary from one lender to another: type (fixed or variable), term (1, 3, or 5 years), cancellation penalties, penalty-free prepayments, portability, etc. Therefore, when comparing rates, make sure you are comparing products with equivalent features.

Question 7

What is the difference between a fixed rate and a variable rate?

Accepted Answer

With a fixed-rate mortgage, the interest rate stays the same for the entire term. This provides predictability and stability in your budget. Conversely, a variable-rate mortgage sees its rate change based on the Bank of Canada policy rate. Over the long term, variable-rate mortgages have historically been more advantageous. However, borrowers must be able to absorb payment increases if rates rise.

Question 8

What is the term of a mortgage loan?

Accepted Answer

The term of a mortgage loan is the period during which you are committed to a mortgage product with a lender. It is not the period required to repay the loan in full. The term generally ranges from 1 to 10 years in Canada. The most common is 5 years (5-year fixed rate). When comparing offers, make sure you are comparing loans with the same term.

Question 9

What is the amortization period?

Accepted Answer

The amortization period is the time it takes to repay the mortgage loan in full. In Canada, it is generally 25 years. Since December 15, 2024, buyers of a first home or a newly built home can amortize their mortgage over 30 years. A down payment of at least 20% also allows you to choose a longer period than 25 years.

Question 10

What is a mortgage down payment?

Accepted Answer

A mortgage down payment is the amount you pay toward the purchase price of the property. The minimum down payment in Canada is 5% of the purchase price (on the first $500,000). However, you can pay more to reduce the loan amount. A higher down payment reduces your mortgage payments. Note that mortgage loan insurance is mandatory if the down payment is less than 20% of the purchase price.

Question 11

What is the ideal credit score to get the best rate?

Accepted Answer

The ideal credit score to obtain the lowest mortgage rate is 680 or higher. The higher the score (out of 900), the better the rate. The riskier a borrower appears, the higher the rate will be. Like many lenders, nesto reserves its best rates for borrowers with a good credit score. nesto cannot help people with a history of bankruptcy or a consumer proposal.

Question 12

What is happening with mortgage rates in 2026?

Accepted Answer

After the surge of 2022-2023, the Bank of Canada lowered its policy rate to 2.25%. Mortgage rates followed: the best insured 5-year fixed rates are around 4.14% at nesto in May 2026. The environment remains uncertain due to geopolitical tensions and inflationary pressure. Markets are pricing in a low probability of an additional cut in the short term.

Question 13

What is a prime rate?

Accepted Answer

The prime rate is the rate used by financial institutions to determine the interest rate on their loans. Banks set their prime rate based on their funding costs, which depend on the policy rate set by the Bank of Canada. In May 2026, banks’ prime rate is 4.45%. Lenders may offer a discount on this rate depending on the borrower’s situation (e.g., prime rate minus 1.05%).

Question 14

What is a policy rate?

Accepted Answer

The policy rate, also called the target for the overnight rate, is the interest rate at which banks lend funds to each other for a one-day period. Set by the Bank of Canada, it serves as a benchmark for financial institutions in setting their own rates. In May 2026, the policy rate is 2.25%, down significantly from the peak of 5% reached in 2023.

Question 15

What is a mortgage stress test?

Accepted Answer

To qualify for a mortgage amount, you must pass the stress test. This test confirms that you can continue making payments if rates rise. The borrower must qualify using the higher of the Bank of Canada’s five-year benchmark rate (currently 5.25%) or the interest rate obtained from the lender plus 2%.

Question 16

What is a mortgage rate hold?

Accepted Answer

A mortgage rate hold allows you to keep an interest rate for a predetermined period. This period is generally 90 to 120 days with Canadian lenders. At nesto, the rate hold period for a new purchase or a renewal is 150 days, the longest in Canada. A rate hold allows you to secure the best available mortgage rate even if rates rise in the meantime.

Question 17

How do you choose your mortgage rate?

Accepted Answer

The interest rate is not the only element to consider. Of course, the lowest rate reduces your payments. However, some low-rate products offer less flexibility, particularly regarding prepayment and cancellation penalties. You should choose the lowest rate that fits your situation and needs. If you plan to move, for example, prioritize a portable mortgage without penalties.

Question 18

What factors determine a mortgage rate in Canada?

Accepted Answer

Several factors determine your rate: your credit score, income, debt ratio, down payment, mortgage type (insured or conventional), chosen term, rate type, property type, and province. The riskier you appear to the lender, the higher the rate will be. The rate is not always the most important element—loan flexibility also matters.

Question 19

What is the great renewal?

Accepted Answer

The great renewal is the expression used to describe the massive number of Canadian mortgages that must be renewed between 2025 and 2029. At the start of the pandemic, many borrowers took advantage of low rates to buy or renew. More than 30% chose a variable rate. With rates rising between 2022 and 2023, these borrowers face a payment shock at renewal. Comparing with nesto before signing can save thousands of dollars.