nesto: How to get the best mortgage rates in Canada
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Buying a home remains the biggest purchase of a lifetime. However, mortgage payments represent a significant share of the budget, not to mention other housing-related expenses. After the rate surge of 2022-2023, the Bank of Canada began a cycle of cuts that brought the policy rate down to 2.25% in May 2026. Finding the lowest possible mortgage rate—whether for a new purchase, a renewal, or a refinance—remains critical.
For economic context, see our tracking of mortgage rates in 2026 and the impact of the trade war.
To that end, nesto, a mortgage brokerage firm founded in 2018, helps you find the best mortgage rates on the market. The platform has revolutionized Canada’s mortgage lending industry with a fully digital application process and commission-free brokers. In this article, learn how nesto can help you get the best mortgage rate in Canada in 2026.
What is nesto?
nesto is Canada’s first digital mortgage lending platform. Founded in 2018 in Montreal, Quebec, the company has established itself as a key player in the Canadian mortgage market.
Its technology analyzes the entire market in seconds and finds the lowest mortgage rates based on your situation. Despite a 100% digital process, nesto’s commission-free mortgage experts provide support and guidance throughout the process.
In June 2024, nesto reached a major milestone by acquiring the CMLS Group, one of Canada’s largest non-bank mortgage lenders. This acquisition significantly strengthens nesto’s ability to offer competitive rates to its clients.
nesto mortgage professionals are licensed in all Canadian provinces. In addition, nesto has been a certified B Corporation since 2023, reflecting its commitments to transparency, governance, and social impact.
What services does nesto offer?
The nesto platform helps you find the best mortgage rates, whether for a new mortgage, a renewal, or a refinance.
nesto works with several mortgage lenders, including banks and credit unions. In addition, the company has offered its own mortgage products since 2022, which expanded further with the acquisition of CMLS in 2024.
Depending on your situation, you can obtain and compare the best fixed and variable rates on the market, across multiple terms (1 year to 10 years) and multiple amortization periods.
You can also lock in your rate for 150 days, the longest rate hold period offered in Canada. By comparison, other lenders generally offer a 90- to 120-day guarantee.
However, there are requirements to obtain a nesto mortgage at the lowest rate. For example, you need a credit score above 680 to access the best offers.
The advantages of nesto
The nesto mortgage brokerage firm stands out in several ways. Here are the elements that set it apart from traditional brokers.
- Extensive partnerships: nesto works with multiple lenders and offers its own products via CMLS
- Salaried brokers: nesto experts are employees, not paid on commission
- Rate discount: part of the commission paid by the lender is returned to clients
- Low-rate guarantee: $500 if nesto cannot match or beat a competing offer
- No tied selling: no need to take out additional products (insurance, etc.) to get the best rate
- 100% digital process: you speak with a broker only at the end of the process
- 150-day rate hold: the longest period in Canada
- B Corp certification: verified commitment to transparency and impact
The great renewal of 2025-2026
If you are reading this article in 2026, you may be part of what nesto calls the great renewal. About 50% of Canadian mortgages must be renewed between 2025 and 2029. Most of these mortgages were taken out at historically low rates during the pandemic (2020-2021).
In practical terms, a borrower who obtained a 5-year fixed rate of 1.99% in 2021 is renewing today at around 4.14% with nesto. For a mortgage balance of $400,000, this represents an increase in monthly payments of about $400 to $500 per month. This is what analysts call the payment shock.
The 30-year mortgage: a new option
Since December 15, 2024, a new rule has made homeownership easier in Canada. All buyers of a first home or a newly built home can now amortize their mortgage over 30 years, instead of the previous 25 years.
In practical terms, a 30-year amortization reduces monthly payments and increases borrowing capacity. In return, the total interest paid over the life of the loan will be higher.
nesto can help you assess whether the 30-year option is advantageous for your situation. The platform automatically takes your eligibility for this option into account when you apply.
How to complete a nesto application online
Whether for prequalification or mortgage approval, nesto allows you to complete your application online through its fully digital platform. From the start, you get the lowest mortgage rates based on your situation.
To begin your application, you must choose between a new mortgage, a mortgage renewal or a mortgage refinancing.
At the end of the process, you will be able to speak with a commission-free mortgage expert.
Application for a new mortgage
First, select the “New mortgage” option:
Next, answer the seven questions in the form in under a minute:
These questions include, among other things, the property type (house, condo, plex), the planned purchase price, and the down payment amount.
Finally, you get the lowest rate on the market for a new mortgage based on your situation:
You can quickly adjust information such as the purchase price and down payment. You can also switch between fixed and variable rates to compare.
If you have questions about the products offered, you can book an appointment with a nesto mortgage advisor. Otherwise, click “Continue” and complete the application form without speaking to an advisor.
Mortgage renewal application
First, select the “Mortgage renewal” option:
Next, answer the seven questions in the form in under a minute:
These questions include, among other things, the current property value, the mortgage balance, and whether it is an insured mortgage (CMHC, Sagen, Canada Guaranty).
Finally, you get the lowest rate on the market for your renewal:
You can quickly adjust information such as the property value and mortgage balance. You can also switch between fixed and variable rates.
If you want to move forward with this offer, click “Continue” and complete the application form.
Mortgage refinance application
First, select the “Mortgage refinance” option:
Next, answer the six questions in the form in under a minute:
Finally, you get the lowest rate on the market for a refinance based on your situation:
You can quickly adjust information such as the property value, mortgage balance, and additional funds required. You can also switch between fixed and variable rates.
If you want to move forward with this refinance offer, click “Continue” and complete the application form.
Which term and rate type to choose in 2026
With a policy rate at 2.25% and 5-year fixed rates around 4.14% at nesto, choosing the term and rate type deserves careful consideration. Here is our analysis to help you decide.
Fixed rate
- Total predictability: identical payments for the entire term
- No stress related to Bank of Canada decisions
- Ideal if you are concerned about rates rising
- Ideal if your budget is tight and cannot absorb an increase
Variable rate
- Currently lower than fixed (3.40% vs 4.14%)
- Benefits directly from each Bank of Canada rate cut
- Break penalties are generally lower than with fixed rates
- More advantageous over the long term, according to historical studies
Should you choose 3 years or 5 years?
The 5-year term remains the most popular in Canada. However, in a context where rates could continue to fall, the 3-year term becomes attractive, as you will be able to renew sooner at a potentially lower rate.
Conversely, if you are concerned about rates rising or want maximum stability, the 5-year fixed rate remains the safe choice. Discuss your profile with a nesto expert to make the right decision.
The nesto low-rate guarantee
With nesto, you get the lowest rate on the market for your situation from the outset. You do not need to negotiate or take out additional products such as mortgage insurance to access the best rate.
You can, however, compare the nesto rate with that of other banks or brokers. If you find a better rate elsewhere for an equivalent mortgage product, nesto commits to matching or beating that offer.
And if it is not possible for nesto to match or beat that offer, the company commits to giving you $500. This is the nesto low-rate guarantee.
Conclusion
In summary, nesto helps you find the best mortgage rates on the Canadian market in 2026. The platform offers a fully digital mortgage application process and commission-free brokers. Its technology analyzes the entire market in seconds and finds the lowest mortgage rates based on your situation—whether for a new loan, a renewal, or a refinance.
You do not need to take out additional products to get the best rate. nesto even guarantees that its clients get the lowest rate for their situation, without negotiation—or you receive $500.
Finally, you can lock in your rate for 150 days, the longest rate hold period offered in Canada. With about 50% of Canadian mortgages renewing between 2025 and 2029, systematically comparing with nesto can make the difference between sound financial management and a payment shock.
nesto – Frequently asked questions
What is nesto?
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.
Is nesto authorized to sell mortgages online?
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).
What are the best current mortgage rates at nesto?
What is the difference between a mortgage broker and a mortgage lender?
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.
What is a mortgage rate?
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.).
How do you compare mortgage rates in Canada?
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.
What is the difference between a fixed rate and a variable rate?
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.
What is the term of a mortgage loan?
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.
What is the amortization period?
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.
What is a mortgage down payment?
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.
What is the ideal credit score to get the best rate?
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.
What is happening with mortgage rates in 2026?
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.
What is a prime rate?
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%).
What is a policy rate?
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.
What is a mortgage stress test?
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%.
What is a mortgage rate hold?
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.
How do you choose your mortgage rate?
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.
What factors determine a mortgage rate in Canada?
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.
What is the great renewal?
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.
