Tangerine Bank Mortgage

Tangerine is one of Canada's leading digital banks, founded in 1997 and formerly known as ING Direct Canada. In 2014, it was acquired by Scotiabank and rebranded. Apart from being a popular mortgage lender, it offers a no-fee daily chequing account, high-interest savings accounts, and much more. Recently, Tangerine has proven an imposing mortgage alternative to Canada's big banks thanks to its competitive rates allowing its clients to save on interest costs, flexible prepayment opportunities, and digital approach. Unlike most financial institutions, Tangerine is not a typical bank as it has no physical locations—everything is online.

Tangerine's mortgage products include fixed- and variable-rate mortgages and a Home Equity Line of Credit at competitive mortgage rates to satisfy clients' needs and help them reach their housing goals. Whether they are refinancing or buying their first property, Tangerine pledges to do its best to get them mortgage free faster.

When you are ready to embark on the house-hunting journey, you can apply for a rate hold and/or a mortgage pre-approval. You can get pre-approved for a mortgage loan online after submitting several pieces of personal and financial information and thus find out what you can afford and what interest rate you can count on. In addition, you can get competitive rates upfront, guaranteed for 120 days, if you choose one of Tangerine's fixed rates.

Tangerine offers a wide range of online tools and resources intended to make your way to owning real estate smoother and faster. For example, with a Tangerine mortgage payment calculator, you can get an idea of your monthly payment. Just enter the principal amount, the mortgage term, amortization, payment frequency (weekly, accelerated weekly, bi-weekly, monthly, or semi-monthly), and interest rates.

Types of Tangerine Bank mortgages

Fixed-rate and variable-rate mortgages

Tangerine Bank offers mortgages with competitive interest rates, generous prepayment options, and a straightforward online application. You could manage your home loan through an online bank account or mobile app.

Usually, the best mortgage rates within different lenders in Canada are variable rates. Variable rates depend on the prime rate, which may save money or cost more during the life of a loan.

A variable rate 5-year mortgage can be available at a 6.40% interest rate, which increases and decreases as the prime rate fluctuates.
Fixed-rate mortgages have 1 — 10 year terms, the rates varying from 5.74% to 659%.

The minimum home loan amount is $50,000.

All Tangerine mortgages are registered as collateral charge mortgages, with 100% of the property value. Refinancing up to the charge amount is possible without any legal costs applied.

You could take your mortgage with you if you move without penalty on the same conditions.

You can make lump sum prepayments of up to 25% of your original mortgage payment and increase your regular payments by up to 25% of your original home loan repayment.

Tangerine Bank offers many tools and resources to help homeowners and borrowers, like calculators and fact sheets.

Mortgage Rate Hold allows you to secure a rate guarantee period of 120 days without going through a full mortgage application process.

You could purchase optional Mortgage life insurance from the Tangerine partner—Canada Life —during the application or refinancing. It will cover your outstanding mortgage balance (up to $500,000) in the case of your death.

Tangerine Home Equity Line of Credit

With a Tangerine Home Equity Line of credit, you can borrow against the equity in your home. The interest rate for this product is set at 0.50% above Tangerine Prime. The peculiar feature about it is that this HELOC is not readvanceable, which means the available credit does not increase as the mortgage principal is paid down.

How to apply for a Tangerine Bank mortgage

Go to the Tangerine website, choose the product you want to apply for, and click the «Apply now» button. If you aren't a Tangerine client, choose «Sign up» and open an account. If you have an account, enter it through the «Log in» button. Also, you may use the mobile app or apply by phone.

As long as you submit the application, you may put your mortgage rate on hold. The Tangerine Mortgage account manager will contact you to assist with the mortgage process once the application is approved.

Call one of the Mortgage Associates at 1-888-826-4374 (Monday to Saturday, 8:00 am to 10:00 pm ET).

Requirements

To qualify for a Tangerine mortgage, you must:

be a Canadian resident
be of the age of majority in your province
have a valid SIN
have a good credit score or/and a qualified co-signer/guarantor
have a stable income and job

You should provide your personal, employment, contact, bank information, property details, income, assets and expenses data, credit info, and loan obligations details.

In general, all Tangerine mortgage applications must comply with Tangerine's residential mortgage standards, standard credit criteria, and maximum permitted loan amounts.

Pros and cons

Pros

Great rates are guaranteed upfront
Apply and manage online or through the mobile app
Flexible prepayment options
Portable mortgage penalty-free

Cons

Limited mortgage variants
Online only

How to make a Tangerine Bank mortgage payment

You could make regular mortgage payments from any bank account — Tangerine or another financial institution.

It's convenient to set up regular payments through online or mobile banking.

To make a lump sum payment: Log in to your Tangerine account on your computer or smartphone, and choose your Mortgage Account. Click «Make Prepayment» and select «Once» for a one-time payment or «Recurring» to schedule ongoing prepayments.

Tangerine mortgage rates

Tangerine Bank launched a special page that shows posted rates and prime rates.

Here is a recap of Tangerine's fixed mortgage rates and variable mortgage rates:

5-Year Variable Rate Mortgage 6.40%
1-Year Fixed Mortgage 6.54%
2-Year Fixed Mortgage 6.15%
3-Year Fixed Mortgage 5.74%
4-Year Fixed Mortgage 5.74%
5-Year Fixed Mortgage 5.74%
7-Year Fixed Mortgage 6.19%
10-Year Fixed Mortgage 6.59%

Tangerine Prime Rate is also published on this page.

For insured mortgages, the qualifying rate is either the 5-year benchmark rate or the contract rate, whichever is greater. For uninsured mortgages, the qualifying rate is the greater of the 5-year benchmark rate and the contract rate plus 2%.