Tangerine Bank offers competitive fixed-rate mortgages and variable mortgages that beat many of the big banks.
If you are a first-time homebuyer looking to purchase a house in Canada, finding the best mortgage rate is a priority.
A low mortgage interest rate translates into lower monthly payments and less strain on your finances.
Read on to learn about the best Tangerine mortgage rates available in 2022 and how to earn up to a $5,000 cash back.
About Tangerine Bank
Tangerine is an online bank owned by Scotiabank. It was founded in 1997 as ING Direct Canada and rebranded to Tangerine Bank in 2012 following its acquisition by Scotiabank.
Tangerine offers a variety of financial products, including mortgages, credit cards, GICs, chequing, savings, investment, and business accounts.
Tangerine Mortgage Rate
Tangerine offers both fixed and variable rate mortgages with terms ranging from 1 to 10 years, and flexible prepayment options.
Depending on your needs, you can also opt for its Home Equity Line of Credit to borrow against the equity in your home.
Tangerine Fixed Mortgage Rates
A fixed mortgage rate stays the same throughout the term of your mortgage. This makes it easier to budget, and you won’t need to worry about rates rising.
The current rates for Tangerine’s fixed mortgages are:
- 1-year: 5.49%
- 2-year: 5.09%
- 3-year: 5.14%
- 4-year: 5.24%
- 5-year: 5.29%
- 7-year: 5.84%
- 10-year: 6.24%
The annual interest rate is calculated semi-annually.
Tangerine Variable Mortgage Rates
A variable mortgage rate may fluctuate with the bank’s prime rate.
When rates go up, a bigger chunk of your monthly payments go towards paying interest, and less is applied to your principal debt.
Likewise, when interest rates drop, more of your payment goes towards your principal.
Tangerine offers only one variable rate mortgage at 4.40% for a 5-year term (4.40% APR).
Tangerine Mortgage Cash Back Offer
You could earn a cash back bonus of up to $5,000 when you apply for a new Tangerine mortgage and are approved.
This offer applies to new mortgage applications for a home purchase only. To qualify, you must meet the following requirements:
- A minimum mortgage amount of $350,000
- A minimum 5-year term closed fixed or variable rate mortgage.
- Maximum amortization of 25 years.
- Your application must be submitted to Tangerine Bank by August 31, 2022, and the mortgage must fund within 120 days of the application submission.
Tangerine Mortgage Pre-Approval
Getting a mortgage pre-approval in place means that the lender has signified they are willing to borrow you a specific amount to buy a house based on your financial situation.
It gives you ideas about how much you can spend on a home and the rate you will pay.
Tangerine offers a “Mortgage Rate Hold” for up to 120 days.
If pre-approved, the rate you are offered will not increase for 120 days. If rates fall, you could benefit from the lower rates.
Tangerine Mortgage Pre-Payment Options
Tangerine allows you to make extra mortgage payments if you plan to pay off your mortgage early.
The two options offered are:
- Increase your regular payments by up to 25% of your original mortgage payment, and
- Make a lump sum prepayment of up to 25% of your principal.
Tangerine Mortgage Calculators
Prospective homeowners can use Tangerine’s mortgage calculators to find out how much they can borrow and the corresponding monthly payments.
The free calculators include:
- Mortgage payment calculator
- Mortgage affordability calculator
- Rent translator
How To Apply for a Tangerine Mortgage
Tangerine is a digital bank, and your application is completed online.
After submitting your application, a mortgage account manager is assigned to you, and they guide you through the process from start to finish.
Have the following documents and information handy as they will be required at some point:
- Proof of income such as pay stubs and tax return
- Employment letter
- Government-issued ID
- Bank and investment statements to show your assets
- Documentation to show your liabilities
- Proof of downpayment, etc.
Tangerine will conduct a credit check to ensure you meet their credit criteria. If you don’t know your credit score, find out here.
Tangerine Home Equity Line of Credit
A Home Equity Line of Credit (HELOC) helps you borrow money at a low rate while using the equity in your home as collateral.
Tangerine Mortgage Pros and Cons
Benefits of a Tangerine mortgage include:
- Flexible payment schedules including weekly, bi-weekly, and monthly options
- Flexible prepayment options
- Competitive interest rates compared to some banks
- Portable throughout Canada
- Pre-approvals for up to 120 days
- Tangerine only has one variable rate mortgage
Tangerine Mortgage FAQs
What types of mortgages does Tangerine offer?
Tangerine offers both fixed and variable rate mortgages.
What is Tangerine’s Prime rate?
Tangerine’s prime rate as of this writing is 4.70%.
Does Tangerine offer mortgage pre-approval?
Yes, Tangerine allows you to secure a mortgage rate for up to 120 days.
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Have questions about mortgage rates in Canada? Leave them in the comments.