Looking to get a mortgage and want to know what the current Tangerine Mortgage rates are in 2023? Then this post is for you.
Mortgages represent one of the largest debts owed by many Canadian families. So it is important and makes financial sense to compare rates before choosing a mortgage provider.
Whether you’re just getting a new mortgage or renewing an existing one, getting the best rate should be your priority.
Luckily, Tangerine offers some of the best mortgage rates in the country even when compared to the large, traditional banks and other online banks.
Formerly known as ING Direct Canada and rebranded to Tangerine in 2013, the bank is a subsidiary of Scotiabank with a distinct legal entity and Institution Number.
With no-fee savings and chequing accounts, cashback credit cards, mortgages, to investing accounts, Tangerine has over $40 billion in assets under management and over 2 million clients.
This Tangerine mortgage rates review covers everything you need to know about the current rates and how they compare to some of the other top Canadian banks.
Overview of Tangerine Mortgage Rates For 2023
The Tangerine mortgage rates are available on both variable and fixed terms. The current rates are as follows:
| Term | Mortgage Rate |
|---|---|
| 5-year Variable | 6.65% |
| 1-year fixed | 6.84% |
| 2-year fixed | 6.15% |
| 3-year-fixed | 5.74% |
| 4-year fixed | 5.74% |
| 5-year fixed | 5.74% |
| 7-year Fixed | 6.19% |
| 10-year Fixed | 6.59% |
With the exception of the fixed rates, the variable rate can change at any time during the mortgage term without notice depending on the Bank of Canada rate.
Therefore, you want to consider your specific financial situation when deciding between a fixed or variable mortgage term.
We’ll cover both in detail below.
About Tangerine Mortgage
On Tangerine’s secure site
5 year Variable Rate
6.65%; APR: 6.60%
Fixed Rate Mortgages
1 year: 6.84%; 5 year: 5.74%; 10 years: 6.59%
Variable and Fixed
$2,000 to $5,000
Tangerine offers both fixed and variable mortgages with competitive rates compared with traditional banks and other online banks in Canada.
In addition to low-interest rates and competitive APR, Tangerine offers a cash bonus to customers that apply for and get approved for a mortgage of at least $350,000.
A cash bonus of $2,000 is paid for approved mortgages valued between $350,000 and $749,999, and a bonus of $5,000 for mortgages valued $750,000 and above.
But of course, how much Tangerine mortgage you get approved for depends on several factors including your:
- Mortgage purpose
- Monthly payments on existing debt
- Pre-tax family annual income
- Monthly condo fees
- Down payment
- Annual property taxes
- Amortization period
The higher the mortgage price, the more down payment you will be required to make. The following are the Tangerine mortgage prices and their down payment requirements.
| Purchase Price | Down Payment Required |
|---|---|
| $500,000 or less | 5% |
| $500,000 and $999,999 | 15% |
| $1,000,000 and above | 20% |
Tangerine offers a number of handy calculators to help you determine your mortgage needs and expected payments.
For example, the How Much Can I Borrow Calculator shows you the maximum mortgage amount based on your income, down payment and so on.
You can also use the Mortgage calculator on the Tangerine website to calculate how much your periodic payments will be.
Types of Tangerine Mortgage Rates
Like other financial institutions, Tangerine offers variable and fixed mortgage rates to suit the financial needs of different customers.
1. Tangerine Variable Rates
Variable mortgage rates, or floating rate mortgages, are pegged against the current prime rates that are set in line with the Bank of Canada (BoC) rates.
That means they’ll change from time to time – lower or higher- depending on the direction of BoC rate changes.
Currently, Tangerine only offers a 5-year variable mortgage with a 6.65% interest rate and 6.60% APR. While this is much lower than the fixed-rate mortgage of the same term, it may go up in the future as the Bank of Canada rate is reviewed upwards.
However, a variable mortgage could be ideal for you if your income is able to absorb any increase in your mortgage payments in the event of rates going up.
And a great feature of the Tangerine variable rate is that you’re allowed to convert your variable rate to a fixed rate without any penalty whenever you want.
2. Tangerine Fixed Rates
Fixed mortgage rates are locked in for a particular period, saving you from the stress that comes with rate fluctuations.
This could be your ideal option if you have a low-medium risk profile and are looking for a predictable mortgage rate and payment in Canada.
Currently, Tangerine has seven fixed mortgage rates, ranging from a 1-year to a 10-year amortization period. With this, you’re likely to get a mortgage term that suits your situation.
The interesting part is that Tangerine fixed mortgage rates have one of the most competitive interest rates and annual percentage rates (APR) in Canada.
Eligibility For a Tangerine Mortgage Account
Unlike other banks in Canada, Tangerine has straightforward mortgage requirements as follows:
- Be a Canadian resident
- Have full-time employment (for a minimum of 3 months) or be self-employed (for a minimum of 2 years)
- Live in a Tangerine-supported location
- Have a 620 average credit score with a good credit history
- Have at least a $25,000 down payment
- You should have no prior bankruptcy
The supported locations for Tangerine Mortgages in Canada include: Alberta, British Columbia, Manitoba, Ontario, Prince Edward Island, Quebec, Saskatchewan, New Brunswick, Newfoundland and Labrador, Nova Scotia and the territories.
How to Apply For a Tangerine Mortgage
You must be a Tangerine client to apply for the mortgage. If you’re not a client, click here to open a Tangerine savings or chequing account.
The basic requirements for opening a Tangerine account include your personal details, employment details, SIN and any government-issued ID.
Once you create a Tangerine account, follow the steps below to apply for a mortgage:
- Visit the sign-up page
- Click the “Apply Now” button
- Login to your Tangerine account
- Follow the instructions to apply
Tangerine Mortgage Payment
Once you’ve been approved for a Tangerine mortgage, making the regular mortgage payments is very flexible with several payment frequencies.
Depending on your situation, Tangerine allows you to make weekly/biweekly or monthly/semi-monthly payments. You can also fasten your repayment through a weekly or bi-weekly accelerated payment.
In addition, you can fast-track your mortgage payments through the Tangerine mortgage prepayment option with no extra charges.
Tangerine Mortgage Prepayment
Tangerine allows you to prepare your mortgage up to 25% of the regular payment or a lump sum prepayment.
That is, you can increase your standard mortgage payment up to 25% at any time during the term of your mortgage or make a 25% lump sum prepayment annually.
Either way, making mortgage prepayment will help you pay off your loan faster, minimizing total interest paid and being mortgage-free earlier.
Tangerine Mortgage Preapproval
A lot of Canadians are asking whether there’s Tangerine mortgage preapproval as is the case with BMO, Scotiabank, RBC, TD and other Canadian banks.
If you’re also wondering whether there’s Tangerine mortgage preapproval, stop wondering because such doesn’t exist.
What Tangerine has is called mortgage rate hold. With this feature, you can secure a fixed mortgage rate for up to 120 days.
The advantage of Tangerine mortgage rate hold over mortgage preapproval is that it doesn’t involve a credit check, keeping your credit score intact.
Pros and Cons of Tangerine Mortgage
No doubt, Tangerine mortgage rates are more competitive than most banks in Canada. But what are some of the other benefits of Tangerine Mortgage and what are the drawbacks?
Here are the pros and cons of Tangerine mortgage you should consider when evaluating if it’s the perfect option for you:
Pros
- Low rates: The fixed and variable mortgage rates are competitive compared to the rates of many other banks (traditional and online) in Canada.
Welcome bonus: Tangerine offers a $5,000 cash bonus to new clients that buy a minimum of $350,000 mortgages. This is uncommon to other mortgage providers in Canada.- Flexible repayment options: You can increase your standard Tangerine mortgage payment up to 25% at the beginning of your mortgage term or make a 25% lump sum prepayment annually.
- Rate Hold: You can locked-in a Tangerine fixed or variable mortgage rate for up to 120 days, protecting you against any sudden market fluctuation.
- Dedicated Mortgage Account Manager: Whether you’re a beginner or experienced mortgage buyer, the Tangerine Mortgage Account Manager is there to help you through the entire application process. This will help you avoid common mortgage application mistakes.
Cons
- Limited variable mortgage rates: The bank has only a single variable rate of a 5-year amortization period. You have to look elsewhere if you’re looking for more variable mortgage options.
- No special rates: Unlike some traditional banks and online banks in Canada, Tangerine had no special mortgage rates. Even though Tangerine offers a $5,000 cash bonus, special rates can help reduce a significant portion of the total mortgage payment.
Tangerine Mortgage Promotion (Expired)
You can get a cash bonus of up to $5,000 when you apply for a Tangerine Mortgage and meet the eligibility criteria for the Tangerine mortgage promotion.
The bonus is paid for mortgages valued $350,000 and above in line with the table below:
| Mortgage Amount | Cash Bonus |
|---|---|
| $350k – $749,999 | $2,000 |
| Above $750,000 | $5,000 |
This promotion is only available for new mortgages that meet the following conditions:
- Submit the mortgage application by the deadline
- Be a new mortgage application for a home purchase
- Fund the mortgage within 120 days of applying
- Mortgage amount of $350,000 and above
- Amortization of 25 years or less
- Closed fixed or variable mortgage rate of 5-year term or longer
Deadline: October 31, 2022
You will receive the Tangerine mortgage cash bonus in your Tangerine account within 30 days after your mortgage is funded.
Tangerine Mortgage Rating
A mortgage rate alone doesn’t define the entire value of a mortgage. So here are the factors we considered to rate Tangerine mortgage 4.5 out of 5 stars:
| Key Feature | Rating |
|---|---|
| Mortgage rates | ⭐⭐⭐⭐⭐ |
| Special rates | – |
| APR | ⭐⭐⭐⭐ |
| Payment/prepayment options | ⭐⭐⭐⭐⭐ |
| Welcome bonus | ⭐⭐⭐⭐⭐ |
| Eligibility | ⭐⭐⭐⭐⭐ |
| Accessibility | ⭐⭐⭐⭐ |
While Tangerine mortgage is currently performing well in most aspects, it lags considerably in terms of special rates even though it offers a one-time $5,000 welcome bonus.
Nevertheless, our Tangerine mortgage rates review is positive and we recommend it to individuals looking for low-interest mortgages in Canada.
Tangerine Home Equity Line of Credit (HELOC)
Life happens and sometimes your home could be your last option in terms of critical funding such as emergency, debt consolidation, or home renovation.
Tangerine allows you to use your home equity to obtain HELOC, a recurring line of credit. You only need to pay the interest monthly alongside your regular mortgage payment.
Like other HELOC, you can keep borrowing from your Tangerine HELOC until you’ve maxed your credit limit which is determined by your home’s current market value.
Currently, the Tangerine HELOC rate stands at 7.20%, lower than most personal loans in Canada. While this could be attractive, you shouldn’t rush into applying for it without understanding the major drawbacks.
Since you will be paying your regular mortgage alongside your HELOC interest monthly, you should consider how the extra expense will affect your cash flow and other financial obligations.
Tangerine Mortgage vs Scotiabank vs RBC vs TD
Here is how Tangerine mortgage rates compare to those at the other top Canadian banks.
| Mortgage Term | Tangerine Bank | Scotiabank | RBC | TD Bank |
|---|---|---|---|---|
| 1 year fixed | 6.84% | 7.09% | 6.24%* | 6.09% |
| 2 years fixed | 6.15% | 6.59% | 5.84%* | 5.79% |
| 3 years fixed | 5.74% | 6.44% | 5.59%* | 5.59%* |
| 4 years fixed | 5.74% | 6.34% | 5.54%* | 6.09% |
| 5 years fixed | 5.74% | 6.34% | 5.54%* | 5.54%* |
| 7 years fixed | 6.19% | 7.00% | 5.94%* | 6.60% |
| 10 years fixed | 6.59% | 7.49% | 7.00% | 6.85% |
*Special promotional rates
The above table shows how Tangerine is currently competing against the Canadian big banks on mortgage rates. Except for 1-year fixed mortgage rates, Tangerine has lower mortgage rates than Scotiabank, RBC and TD Bank.
Even though the big banks have special rates on APR and fixed and variable mortgage rates, you can save more with Tangerine’s low mortgage rates over the term of your mortgage.
Beyond the mortgage rates, you should consider the terms, eligibility, and features of a mortgage before choosing. In this aspect, you can’t make the wrong choice with Tangerine too.
However, Tangerine currently offers a single variable term, unlike the big banks that have several options. But this may not be a dealbreaker if you’re comfortable with a 5-year variable mortgage term.
FAQs: Tangerine Mortgage Rates
Absolutely. Tangerine is one of the best banks for mortgages in Canada due to its low rates, welcome bonus, flexible eligibility and multiple payment terms.
No. Tangerine currently offers a 1-year to 25-year amortization period. Like some other banks, Tangerine does not offer a 30 year amortization period currently.
Yes. Tangerine mortgages are collateral charge mortgages based on 100% of the property value. That means 100% of the property value is registered as a charge against your home at the land registry.
Tangerine offers no mortgage pre-approval at the moment. You can only lock in a fixed or variable mortgage rate for up to 120 days through the Tangerine Rate Hold.
Tangerine Bank is safe because it’s a member of the Canadian Deposit Insurance Corporation (CDIC). As a result, your deposits and earnings are protected up to $100k/insured category.
In addition, Tangerine uses a 2-Step Authentication to protect your personal information against fraudsters.
Final Thoughts on Tangerine Mortgage Rates
Obviously, Tangerine mortgage rates are one of the leading alternatives to traditional banks’ mortgages in Canada.
Whether you’re looking for a fixed or variable term, Tangerine offers some of the overall best mortgage rates in Canada.
Hopefully, now you can determine if Tangerine mortgage is ideal for you and what to look for when choosing the perfect mortgage rates in Canada.
But if you need more help in making this critical decision, please leave a comment below.
Before you leave, kindly explore our existing blog posts to learn more about other best financial products and services in Canada.
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