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