Neo Mortgage™ Review for 2024
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Discover the methodologyIt may be easier now to buy a home in Canada than ever before. A new law forbids foreign investors from purchasing houses in Canada and equally cracks down on vacant houses, resulting in more accessible housing.
If you are looking to buy your first home, refinance or renew your mortgage, now is the right time, and you’re in the right place. Neo Mortgage™ offers a hassle-free mortgage experience that is entirely digital. That means from application to approval, you won’t have to leave the comfort of your home — and they offer renewal too.
Neo Mortgage™ uses technology to disrupt the way traditional banks do business. Neo Financial mortgage rates are lower than what traditional banks offer, and Neo locks in your mortgage rate for 120 days to give you time to compare and check for yourself. In this Neo Financial mortgage review, we help you understand Neo’s mortgage process and make home-buying stress-free.
Neo Mortgage™ Key take away
- Fully digital process — you never have to set foot in a branch
- As little as 5% down
- Rate locked in for 120 days
- 500% less in penalties than traditional banks
Neo Mortgage™ Review
Neo Financial is a fintech upstart that is changing the banking game in Canada. It was founded in 2019 in the Canadian Prairies by the same team that created SkipTheDishes. Despite its youth, Neo has been backed by well-established institutions such as ATB Financial, a bank owned by the province of Alberta, and OneVest, a regulated investment portfolio manager. Neo offers all its services fully online, so you can fulfill all your banking needs from your smartphone, and with more than a million customers, Neo is not just getting noticed; it’s disrupting the banking world in Canada.
Whether you’re a first-time home buyer or a seasoned proprietor, the Neo Financial mortgage process may suit you, and you won’t even have to leave your couch. But rest assured, being fully online doesn’t mean you won’t get support. Neo has advisors you can speak to at any step of the process, be it to answer your questions, help you complete your mortgage or explore further options.
Here’s a quick look at the pros and cons of Neo Mortgage™
Pros
- Speedy and convenient application and pre-approval process
- No hidden fees
- A network of lenders to secure the lowest rates
- Options for lower credit scores
- Excellent customer support via email, phone and text message
Cons
- Unavailable in Quebec (coming soon - waitlist already in place)
- Inability to meet in person
What types of mortgages are available from Neo?
Given its youth, Neo Mortgage™ offers a simple and essential mortgage experience. There are no set types of mortgages. The process is more about personalization and finding the best mortgage for each customer’s needs.
At the time of publication, Neo Mortgage offers a 4.29% rate for a 5-year fixed rate on a closed mortgage — almost 1% less than a traditional bank’s rate.
Besides new mortgages, Neo also allows you to renew or refinance your mortgage.
Neo Mortgage™ Renewal
Renewing your mortgage means maintaining your current lender for another term, but it also presents the opportunity for negotiating your rate and term without having to re-apply for a mortgage.
With Neo, renewing your mortgage also means a significant 500% less in penalties than a traditional lender to negotiate or move your mortgage. If your financial situation is better, you can even pay up to 20% of your mortgage as a lump sum each year to pay off your mortgage sooner. Plus, all these advantages come without any transfer fees.
Neo Mortgage™ Refinance
As the renewal date approaches, if you need more money, you may want to consider refinancing your current mortgage. In other words, you can pay out your existing debt to negotiate a new mortgage loan contract.
Instead of opening another line of credit, which usually means high-interest borrowing, you can consider refinancing with Neo which would help you secure lower-interest payments. You could also refinance to fund a home renovation to create a home office or increase the value of your home. Finally, you can choose to refinance your Neo Financial mortgage to free up cash to boost your investment portfolio.
Why use Neo Mortgage™?
Neo offers the best of the banking experience weaved together with the best of a mortgage broker.
It differs from a traditional bank in that Neo screens several mortgage providers to find the best rate, so you do not have to negotiate with individual banks for a lower rate. Neo also offers a fully digital process without ever meeting in person, and their mortgage experts do not work on commission, which means they have incentives to offer what’s best for you, not them. Plus, Neo Mortgage™ is different from a mortgage broker because they also offer other other financial services, including:
- the Neo Card™
- Neo Card™ (Secured)
- Neo Money™
- Neo Money™ card and Neo Invest™
Good to know
Apart from Neo, Nesto Mortgage also offers a fully digital lending process and policy management. Take a look at our complete Nesto Mortgage review to see if it fits your needs.
What are the eligibility requirements for a Neo Mortgage™?
Neo’s eligibility requirements are straightforward compared to traditional banks.
You’ll need to:
- Live in Canada (except Quebec for now)
- Have a Canadian photo ID
- Be the age of majority in your province
- Have a few documents ready, like proof of income, details of assets as well as debts and proof of your ability to make the down payment.
Credit Score
Attractive Neo Financial mortgage rates are also available to those with lower credit scores. When you apply for a mortgage with Neo, you must give them permission to check your credit report to assess your creditworthiness. However, Neo Mortgage™ is available to applicants with various credit scores, including those on the lower end. So, if your score isn’t great, Neo mortgage rates may still be for you. It’s easy to start the application process and discover if your pre-qualify.
Down Payment
With Neo, you can get a mortgage with a down payment of as little as a 5% of the purchase price. Naturally, a higher down payment will help you secure better terms for your loan.
Here is a structure of the minimum down payments with Neo:
| Cost of the Home | Minimum Down Payment |
|---|---|
| Under $500,000 | 5% |
| $500,000 to $1 million | 5% for first $500,000, then 10% for remaining portion |
| Above $1 million | 20% |
How do you apply for a Neo Mortgage™
When you have the documents above, you can easily apply online. The initial process takes about 2 minutes.
Click on Get Started then choose the situation that fits you, whether you’re getting a new mortgage, renewing an existing one or refinancing.
The next step is to choose a timeline for when you need the money.
Then, Neo will ask you for the cost, or an estimate, of the home you want and your down payment.
Next, Neo asks you to select your credit score among 3 options.
In the final step, all you have to do is provide your first and last name and your email address. After that, a mortgage advisor will get in touch with you, usually within an hour. You’ll have to upload the documents before you can pre-qualify for a mortgage. At this stage, Neo will hunt down the best mortgage rates, which you can then lock down for 120 days. Your mortgage advisor will guide you through the process, and you can even meet with a lawyer online. The entire process is digital.
How do I contact Neo Mortgage™?
If you’re looking for the best Neo Financial mortgage rates, applying online is easy, but you can also contact Neo directly. The table below shows all the contact details.
| Phone number (general) | Phone number (mortgage advisor) | Chat | |
|---|---|---|---|
| 1-855-636-2265 | 1-855-536-1993 | [email protected] | Accessible once logged in via the app or website |
| 7:00 AM – 8:00 PM MST Every day | 9:00 AM - 5:00 PM MST Monday to Saturday | 7:00 AM – 8:00 PM MST Every day |
Neo Mortgage™ is a great choice for many borrowers. But before making your decision, want to stacks up against the competition?
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