Tangerine Mortgage Review
Get competitive interest rates on your next home loan when you sign up for a mortgage with this reputable digital bank.
Whether you’re purchasing your first home or looking to refinance your mortgage, you might benefit from banking with Tangerine. This reputable online bank offers interest rates as low as 1.74% on a 5-year fixed term mortgage.
How do Tangerine mortgages work?
Tangerine mortgages work just like any mortgage you would get from a Big Five bank. These mortgages come with rates that sit as low as 1.45% for variable rate mortgages on a five year term and 1.59% for fixed rate mortgages with terms lasting between 1 and 10 years.
The main selling features of Tangerine mortgages are that you can prepay them without penalty (up to 25% of your original mortgage amount each year). They’re also portable, which means you can bring them with you penalty-free if you decide to move to a new property.
The main downside of these mortgages is that they’re collateral mortgages, which means you’ll pay a penalty if you want to renew with a different provider. You may also pay slightly higher interest rates than you would if you compared many providers using a mortgage broker – however Tangerine’s rates do tend to be lower than other banks in Canada.
What is a collateral mortgage?
A collateral mortgage allows your lender to lend you more money as your property value increases, without you having to refinance. This lets you tap into your home equity but also eats up your mortgage as collateral.
The downside of this is that it will be more difficult to use your home equity to get secondary financing such as a personal loan or line of credit. You may also have to pay high legal fees if you decide you want to move your mortgage over to another provider.
How is Tangerine different from a regular bank?
Tangerine is different from a regular bank because it operates entirely online. This means that you won’t be able to go into a branch location to navigate the terms of your mortgage. It also means that you won’t have to pay overhead costs for services that you don’t necessarily use. This translates to cheaper financial products and better Tangerine mortgage rates.
How much will a Tangerine mortgage cost?
The cost of a Tangerine mortgage depends on a number of factors such as how much you want to borrow, how long you need to pay your mortgage off and what your credit score is. Tangerine posts its average interest rates online based on the length of the term you want.
Sample of Tangerine mortgage rates
The table below showcases some of the current Tangerine mortgage rates. These rates may change as the market fluctuates or the prime rate of Canada goes up or down.
|Term duration||Term type||Tangerine mortgage rates|
|5 year||Variable mortgage||1.45%|
|1 year||Fixed mortgage||2.79%|
|2 year||Fixed mortgage||1.64%|
|3 year||Fixed mortgage||1.59%|
|4 year||Fixed mortgage||1.69%|
|5 year||Fixed mortgage||1.74%|
|7 year||Fixed mortgage||2.09%|
|10 year||Fixed mortgage||2.14%|
Just keep in mind that these rates are only a sample and you’ll need to check Tangerine mortgage rates on the day you apply to see what their current rates are.
How do Tangerine mortgage rates compare to other providers?
Tangerine mortgage rates are on-par with or lower than some other providers. The rates below are a sample of what’s on offer from major providers for a five year fixed rate mortgage. Keep in mind that the current Tangerine mortgage rate for this term is 1.74%.
|Big banks||Alternative providers|
| Simplii Financial. 1.99%|
True North Mortgage:1.49%
CanWise Financial: 1.94%
Equitable Bank: 1.69%
Based on this comparison, Tangerine mortgage rates are some of the most competitive on the market. This is impressive given that Tangerine offers no-penalty prepayment options.
What makes Tangerine mortgages unique?
- Easy online application. You can apply and get approved in a short time frame, all from the comfort of your own home.
- Low interest rates. Tangerine offers some of the best interest rates on the market, which makes it a solid choice if you want to save some money.
- No penalty prepayment. You can prepay up to 25% of your original mortgage amount each year without having to pay a penalty.
- Stays with you if you move. Your mortgage can move with you so you don’t need to renew or refinance if you decide to purchase a new property.
- Guaranteed rates. Your rates will be guaranteed for up to 120 days from the date that you apply and you’ll get a lower rate if Tangerine mortgage rates drop in that period.
How can I qualify for a Tangerine mortgage?
To apply for a Tangerine mortgage, you need to meet the following criteria:
- Be at least 18 years old (and 19 in some provinces)
- Be a citizen or resident of Canada
- Be free from bankruptcy or other forms of unmanageable debt
Required documents and information
- Government-issued ID. You’ll have to show a government-issued ID like your driver’s licence or passport to prove your identity.
- Proof of income. You may be required to prove that you can make your monthly payments using pay stubs and letters of employment.
- Credit report. You’ll need to allow Tangerine to pull your credit report so that it can assess your creditworthiness.
- Other financial information. You may have to provide a list of your debts and assets, along with proof that you can cover your down payment and closing costs.
How to apply
If you think you meet all the eligibility criteria and you’re ready to get started with your Tangerine mortgage application, you just need to follow these simple steps.
- Click the green ‘See rates’ button to be securely redirected to Tangerine’s website.
- Use the online application to provide personal information like your name, email address, proof of ID and relevant documents.
- Review and submit your application.
- Get verified and work with Tangerine to negotiate the terms of your mortgage if you meet the eligibility requirements.