Nesto Acquires Canada's Third-Largest Mortgage Finance Company

24 Jun, 2024

Nesto Acquires Canada's Third-Largest Mortgage Finance Company

Digital mortgage lender Nesto has acquired CMLS Group, Canada's third-largest mortgage finance company, making Nesto the largest technology-enabled lender in the country. This acquisition will enable Nesto to offer both residential and commercial mortgages, significantly expanding its market reach. Following the acquisition, Nesto's workforce will increase from 310 to over 1,000 employees across 10 offices in Canada, and the company will manage over $60 billion in mortgages.

Nesto announced that it will continue to serve both its and CMLS Group’s partners and clients, with all CMLS Group executives and employees joining the combined entity. CMLS shareholders will also receive equity stakes in the new company. Nesto’s CEO, Malik Yacoubi, emphasized that combining strengths with CMLS will set new standards in the mortgage industry and build a future-oriented mortgage ecosystem in Canada.

Founded five years ago in Montreal, Nesto began as a broker and has since evolved into a full-stack lender, originating billions in mortgage volume annually. The company pioneered the "150-day rate hold" in Canada. Nesto’s growth has been fueled by $165 million raised in three funding rounds from venture capital firms and financial institutions, including Diagram Ventures, Portage, National Bank’s NAventures, BMO Capital Partners, IGM Financial Inc., Mike Paulus, and Mike Rowell.