Neo Mortgage Review

Neo Mortgage Review

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated January 17, 2023

Convenience and affordability are important to Canadians when it comes to applying for a mortgage. Neo MortgageTM covers both of these factors, and others, thanks to its fully online mortgage application platform and competitive mortgage rates. 

Let’s take a closer look at Neo Mortgage and all the perks that it offers. 

Who Is Neo?

Neo Mortgage is a relative newcomer in the world of mortgages. The platform offers fully digital mortgages to consumers looking for a quick and convenient way to finance a home purchase, as well as refinance or renew an existing mortgage.   

What Is Neo Mortgage?

Neo Mortgage’s loan products work a little differently than others in the mortgage lending industry. The company uses digital technology to help homebuyers access their mortgage needs completely online without the need to visit a mortgage agent in person.

As such, consumers will find Neo Mortgage home loans more accessible. They’ve also leveraged this technology to make mortgages more affordable and transparent. There are no hidden fees, obligations or surprises when you apply with Neo. Neo Mortgage works with a wide network of lenders and will search for the best mortgage with the lowest rates and fees for you.  

With New Mortgage, you can apply for and close your mortgage entirely online, saving you plenty of time. Plus, all your sensitive financial information is kept secure at all times thanks to Neo Mortgage’s robust online security features. You’ll even be provided with a human agent for additional support.

Features Of A Neo Mortgage

Neo Mortgage offers applicants handy features to make applying for and closing a mortgage easier than ever. Some of the key features of this platform include the following:

Quick Application

It only takes a few minutes to apply for a mortgage online with Neo. There’s no need to wait days or longer for news about your mortgage application. Once you’ve applied, you’ll be instantly pre-qualified, so you’ll quickly find out how much you’re eligible to borrow and what interest rate you can secure.

You’ll be notified about your pre-approval within 5 minutes of application submission.

All Online

The entire application process is done on your computer or mobile device. You can apply wherever you are without having to visit a lender’s office in person. Further, any documents that you need to provide can all be submitted online. You can also view your mortgage statements, make extra mortgage payments, or renew an existing mortgage online.

Rate Lock

If you can get a competitive rate today, Neo Mortgage will let you lock it in for 120 days before rates increase in the near future. This holds your interest rate to give you more time to find your dream home.

No Commission

The agents at Neo Mortgage don’t work on commission, so you can rest easy knowing that you won’t have to endure an aggressive sales pitch. Neo is paid directly from lenders providing each mortgage as a finder’s fee. The Neo team has your best interests in mind and will only provide advice that’s best for you. 

Low Rates

Snagging the lowest rate on a mortgage is crucial, as it will help shave off thousands of dollars in interest paid over the life of your mortgage. Neo Mortgage offers some of the lowest rates around by thoroughly scanning the lending market for you.

Neo Mortgage Rates vs. Bank Mortgage Rates

As mentioned, the interest rate you secure on your mortgage makes a huge difference in what your mortgage will cost you over the entire amortization period. Neo Mortgage rates are very competitive compared to what traditional banks offer.

Right now, Neo Mortgage is offering a 5-year fixed rate of 4.64% on closed mortgages. Compare that to 5.67% with conventional banks.

To help you understand how much you can save in interest by opting for Neo Mortgage, let’s illustrate using a couple of examples. The following chart displays how much interest you would pay on a $400,000 mortgage paid monthly with Neo Mortgage (4.64%) versus banks (5.67%):

Neo MortgageBanks
Interest payment over 5-year term~$86,702~$106,524
Interest payment over 25-year amortization period~$273,539~$344,388

On a $600,000 mortgage, you would pay the following interest amounts:

Neo MortgageBanks
Interest payment over 5-year term~$130,053~$159,786
Interest payment over 25-year amortization period~$410,308~$516,582

Based on the above figures, this is how much you could save by using Neo Mortgage:

$400,000 Mortgage Balance$600,000 Mortgage Balance
Savings over a 5-year term~$19,822~$29,733
Savings over a 25-year amortization period~$70,849~$106,274

How To Get A Neo Mortgage

Applying for a home loan with Neo Mortgage is simple. Simply visit their website and click “Get Started” to begin the process. 

You’ll need to enter a few important pieces of information about yourself to give Neo Mortgage an idea of what you need and what your current financial profile looks like. You can choose to apply for a new mortgage, renew an existing loan, or refinance.  

You will also need to specify how much of a home loan you’re looking to take out based on the price range of homes that you’re looking at. Neo will also need information about your current income and debt load to give you a more accurate idea of what you can get approved for. 

Based on the data you provide, Neo will scan the lending market to what’s available for you. If you can find a low rate, you can lock it in and start the house-hunting process. You’ll also be connected with a mortgage advisor who can guide you along the way. 

What Kind of Documents Do You Need To Apply For A Neo Mortgage?

Once you’re pre-qualified for a mortgage with Neo, you’ll need to supply certain documents to finalize the application and close the mortgage, such as the following:

  • Government-issued photo ID. You must prove your identity with identification, such as a driver’s license or passport.
  • Proof of income. To show that you can cover your monthly payments, Neo may request documents such as pay stubs and a letter of employment.
  • Credit report. Neo will pull your credit report to assess your creditworthiness. You’ll need to provide Neo with permission to do so.    
  • Other financial information. Neo may ask for other documents to prove your income and assess your debts and assets. You may also need to provide evidence that you have the funds to cover the down payment and closing costs.  

Who’s Eligible For A Neo Mortgage? 

To qualify for a home loan with Neo Mortgage, you must meet the following criteria:

  • Be a Canadian citizen
  • Be the age of majority in your province
  • Have a Canadian photo ID

While a good credit score is always recommended, Neo Mortgage works with applicants with a wide range of credit scores. So, even if your score is a little low, you may still be able to qualify. You can start the application process to find out if you pre-qualify based on your current financial profile. 

Can You Refinance A Mortgage With Neo? 

Yes, Neo offers mortgage refinancing. If you already own and carry a mortgage, you may wish to refinance your loan for a variety of reasons. 

The most common reason to refinance a mortgage is to save money on interest over the life of the loan and lower your monthly payments. If your financial situation has improved since you originally took out a mortgage and you’re able to qualify for a lower rate, refinancing your mortgage can help you save thousands of dollars in interest. And with these savings, you can reduce what you pay every month.

You can also extend your mortgage with a refinance to lower your monthly payments. With more time to pay your mortgage, your monthly payments may fit better with your budget.

Alternatively, you can shorten your loan term through a refinance to save money in interest overall. While your monthly payments may increase, you’ll save a ton in interest and will be mortgage-free sooner. 

Can You Renew A Mortgage With Neo?

Yes, you can renew your mortgage with Neo. If the term end date of your current home loan is around the corner, you can save money with Neo by locking in at a lower rate upon renewal. Right now, you can lock in a rate of 4.64% for 120 days, depending on your financial profile. 

Neo Mortgage FAQs

Who are Neo’s lending partners?

Neo is currently partnered with the following lenders:
  • CMLS Financial
  • Home Trust
  • CWB Optimum Mortgage
  • Strive
  • RFA

Can I get a Neo mortgage if I have poor credit?

Homebuyers with all types of credit may apply for a mortgage with Neo. The company’s team of professionals will do their best to find lenders who work specifically with bad-credit borrowers. Though there is no guarantee of approval, it’s still possible to get approved for a Neo Mortgage with subpar credit.

Can I get a Neo Mortgage if I’ve filed for bankruptcy in the past?

Bankruptcy can wreak havoc on your credit score, which can negatively impact your ability to secure loans for years. That said, Neo strives to ensure that the underbanked are served, including those who have had credit issues in the past due to bankruptcy. Neo’s mortgage experts work closely with lenders within their network to help borrowers who have declared bankruptcy get a mortgage, though it may be difficult.

Where is Neo Mortgage available? 

Neo Mortgage is licensed in almost all provinces in Canada including Ontario, Alberta, British Columbia, Nova Scotia, Manitoba, New Brunswick, Saskatchewan and Newfoundland and Labrador. That said, all applications are pending across Canada. 

Final Thoughts

If you’re looking for a quick and convenient way to apply for a mortgage and want a low-interest rate to go with it, Neo Mortgage may be worth looking into further. Go online and start the process to see if you pre-qualify. 

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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