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Tangerine Mortgage Rates and Reviews

Learn about Tangerine mortgage rates, preapprovals, portability and other key features to see if their online mortgages are right for you.

What are Tangerine Bank Mortgages?

Tangerine Bank

Tangerine Bank, previously known as ING Direct Canada until rebranding in 2014, is a leading digital bank in Canada owned by Scotiabank.

With over 2 million clients nationwide, Tangerine offers online banking services, including savings accounts, credit cards, investments, and mortgage products.

Tangerine is known for providing competitive rates and flexible features on their key mortgage offerings: Fixed-rate mortgages, Variable-rate mortgages, and Home Equity Lines of Credit (HELOCs)

As an online-only bank, Tangerine provides clients digital access to apply for and manage their mortgages. With no physical branches, Tangerine offers ease of access and competitive rates. However, some limitations exist around in-person support.

This comprehensive guide will examine Tangerine’s current mortgage rates, features, products, eligibility requirements, application process, and customer reviews to help you make informed decisions about choosing banks for your mortgages.

What are current Tangerine Mortgage Rates?

Tangerine Fixed Mortgage Rates

Tangerine offers fixed-rate mortgages with terms ranging from 1 to 10 years. With a fixed rate, the interest rate stays the same over the full mortgage term, providing consistent monthly payments.

Below are Tangerine’s current posted fixed rates for insured mortgages as of October 2024, along with the lowest mortgage rates available in Canada for comparison:

TermTangerine RateLowest Rate in Canada
1-year fixed6.64%%5.74%
2-year fixed5.74%4.99%
3-year fixed4.74%4.09%
4-year fixed4.79%4.29%
5-year fixed4.84%4.09%
7-year fixed5.65%5.99%
10-year fixed6.05%5.79%
Tangerine Fixed Mortgage Rates as of October 2024

Keynotes:

  • The rates shown are for insured mortgages with a down payment of under 20%. Conventional mortgage rates may differ.
  • Tangerine offers a 120-day rate hold on pre-approvals.

Tangerine’s fixed mortgage rates are competitive, though other lenders may offer lower discounted rates in certain terms, such as 1, 3, and 5 years. Working with an experienced mortgage broker can help you secure the best possible rate for your specific situation.

Tangerine Variable Mortgage Rates

Tangerine also offers a 5-year variable-rate mortgage product. With a variable rate, the interest rate fluctuates based on changes to the prime rate, but monthly payments remain the same over the term. This provides potential savings if the prime rate drops significantly.

Here are the current posted variable mortgage rates with Tangerine:

TermTangerine RateLowest Rate in Canada
5-year variable5.45%4.75%
Tangerine Variable Mortgage Rates as of October 20275

Fixed vs variable rate example:

Based on current posted rates for a $300,000 insured mortgage with 25-year amortization:

RateMonthly Payment
Tangerine 5-year fixed 4.84%$1,717.59
Tangerine 5-year variable 6.00%$1,919.42

The variable rate increases the payment by $201.83 per month compared to the fixed rate option.

Tangerine Prime Rate

As of October 2024, the current Tangerine prime rate is 6.45%. Tangerine’s prime rate is aligned with the prime rates set by the Big banks based on the Bank of Canada’s overnight rate.

This key rate impacts the interest rates for many of Tangerine’s products:

  • Tangerine Mortgages
  • HELOCs
  • Credit cards
  • Personal loans
  • Savings account interest

For example, variable-rate mortgages fluctuate based on changes to the prime rate. If the prime rate goes up, variable mortgage rates follow, and monthly mortgage payments are higher because more goes towards interest charges.

Understanding and tracking the prime rate can help consumers make informed choices about managing interest rates with variable-rate products.

Special Tangerine Mortgage Products

Tangerine Mortgage Products
Tangerine Mortgage Products

In addition to standard purchase and refinance mortgages, Tangerine offers specialized products and programs.

Tangerine Home Equity Line of Credit

Tangerine provides access to a HELOC, a revolving line of credit that uses your home equity as collateral. As of October 2024, the current Tangerine HELOC rate is 6.95%, directly linked to the prime rate. [Source]

HELOCs require paying interest on any balance used, but you have flexibility in how much you borrow and when. It works similarly to a credit card for accessing available funds.

Tangerine Self-Employed Mortgage

Tangerine offers mortgage options for self-employed Canadians or those with non-traditional income sources.

You’ll need to provide proper income documentation, such as tax returns, notices of assessment, and financial statements. A larger down payment and a strong credit score also help secure approval.

What are Tangerine Mortgage Features?

In addition to competitive rates, Tangerine offers several features that set their mortgages apart from other lenders.

Tangerine Prepayment Options

Tangerine provides prepayment options to pay down your mortgage principal faster and reduce interest costs over the life of the loan:

  • Increase monthly payments – Tangerine allows you to increase your monthly mortgage payment by up to 25% of the original amount. You can put these extra funds directly against the principal.
  • Annual lump sum payments – You can pay up to 25% of the original mortgage amount as a lump sum annually for accelerated repayment on closed fixed-rate terms over three years. Most lenders allow 10-20% annual lump sum payments.
BankMaximum Annual Prepayment
Tangerine Bank25%
CIBC20%
RBC10%
Scotiabank15%
TD15%
National Bank10%
BMO20%
Tangerine Bank Maximum Annual Prepayment compared to other Big Banks

Tangerine Portable Mortgages

Tangerine mortgages offer portability protection if you sell your home before the term expires. You can port your existing mortgage to a new property without penalty or discharge fees, and your same rates, terms, and repayment schedule will be transferred to the new mortgage.

Portability provides flexibility if your life circumstances change. Other banks may charge a 1-3 months interest penalty for breaking a mortgage early.

Tangerine Mortgage Life Insurance

Tangerine offers optional mortgage life insurance through Canada Life Assurance Company. This insurance can pay off your mortgage balance if you pass away before the end of your term.

Monthly premiums are based on mortgage amount, age, and coverage options. Mortgage life insurance may provide peace of mind that your family and home are protected if tragedy strikes.

Tangerine Property Tax Payments

Tangerine can set up your property tax payments to be paid as part of your monthly mortgage payments. This avoids saving up for a large lump property tax bill when it’s due.

Tangerine will collect 1/12th of your monthly estimated annual property tax in your payments. When the actual tax bill is issued, they pay your municipality directly on your behalf.

How to Apply for a Tangerine Mortgage?

How to Apply for a Tangerine Mortgage?
How to Apply for a Tangerine Mortgage?

Tangerine has an online-only application process. Here are the key steps and requirements to secure a mortgage pre-approval or fully approved mortgage.

Documentation Needed

Prepare these documents before starting your application:

  • Government ID (driver’s license, passport)
  • Proof of income
  • Down payment source and amount
  • Length of employment
  • Other assets or debts

Getting Pre-Approved Online

To access mortgage applications online, you must first have an existing Tangerine client account. You cannot get pre-approved independently without an account.

Once logged into your Tangerine account, you can start the pre-approval application process and provide the required documents.

After submission, a Tangerine Mortgage Specialist will contact you to discuss the next steps. Once approved, pre-approvals are typically valid for 60-120 days.

In-Person Mortgage Applications

Tangerine is an online-only bank that does not offer in-person banking or mortgage application options. Everything must be done through its website or over the phone.

This limits the ability to meet face-to-face with a mortgage representative for guidance. However, their contact center is available to assist applicants.

What are the Pros and Cons of Tangerine Mortgages?

Customer reviews provide helpful insights into the pros and cons of choosing a mortgage lender. Here is an overview of feedback on Tangerine mortgage products:

Pros

  • Competitive rates on par with major banks
  • Unique features like portability and prepayment options
  • Good rates for new immigrants with limited credit history
  • Simple online application process

Cons

  • No in-person banking is available
  • Wait times to get issues resolved via call center
  • Use collateral mortgages, which cost more to transfer lenders
  • Mixed reviews on customer service responsiveness

While Tangerine offers digital convenience and competitive rates, the lack of in-person support remains a common complaint. Understanding limitations around collateral charges and access to support is important when evaluating options.

Checking sites like Google Reviews and the Better Business Bureau can provide balanced insights from existing clients on mortgage experiences with a lender.

Getting the Best Tangerine Mortgage Rate

Mortgage rates can vary significantly depending on individual profiles and situations. Here are some tips to help improve your chances of getting the lowest mortgage rate with Tangerine:

  • Maintain a strong credit score of over 700
  • Have a low debt-to-income ratio through managing other debts
  • Make a larger down payment if possible
  • Provide all required documentation upfront for a smooth application
  • Ask your Mortgage Specialists if they can match competitor rates

Improving your financial profile and completing your application strengthens your negotiating position to get the best possible rate.

Alternatives to Tangerine Bank

Tangerine is not your only option. Here are two alternatives to consider for your mortgage needs:

Mortgage Broker

A mortgage broker can shop rates from multiple lenders and help customize options for your situation. This provides an easy way to compare rates and features across providers.

Major Bank

The Big 6 banks (RBC, TD, Scotiabank, BMO, CIBC, National Bank) offer varied online and in-branch mortgage options, including access to special discounted rates. Branch support provides personalized guidance.

Be sure to compare multiple providers beyond Tangerine to find your best mortgage fit!

Looking for the Best Mortgage Options? Discover our Top Banks for Mortgages in Canada

Keys takeaway on Tangerine Mortgages

With competitive rates and digital convenience, Tangerine offers an excellent mortgage option for some borrowers. Key advantages include:

  • Digital applications from the comfort of home
  • Most rate terms available from 1 to 10 years
  • Unique features like portability and prepayment allowances

However, limitations around lack of in-person support and use of collateral mortgages may make other lenders a better fit depending on individual preferences and needs.

Now that you understand Tangerine mortgage rates and products, you can decide on the best option for your home financing needs. Comparing choices across multiple providers ensures you get the optimal rate and features to save money over the lifetime of your mortgage.

For personalized mortgage advice and to explore your best rates, connect with a broker today at Best Mortgage Online. We’re here to help you navigate the mortgage process for a stress-free home financing experience.

FAQs on Tangerine Mortgages

What types of mortgages does Tangerine offer?

Tangerine offers fixed-rate, variable-rate, and HELOC mortgages and niche programs for newcomers and the self-employed.

How do I apply for a Tangerine mortgage?

First, you must open an account. Then, you can apply online by completing the application form and submitting the required documents.

Does Tangerine have physical mortgage specialists?

No, Tangerine is an online-only bank without brick-and-mortar branches or in-person mortgage support.

What is Tangerine prepayment policy?

You can increase payments by 25% annually or prepay up to 25% of the original mortgage amount as a lump sum.

Can I transfer my Tangerine mortgage to a new home?

Yes, Tangerine allows you to port your existing mortgage to a new property without penalties.

What credit score is needed for a Tangerine mortgage?

Tangerine does not disclose its minimum credit score requirement publicly. 720+ is recommended.

Article Sources
  1. Tangerine Bank Mortgage Rates & Reviews
  2. Tangerine Mortgage Rates & Review

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