Overview of Tangerine mortgages
With a Tangerine Mortgage, you get great interest rates and flexible prepayment options. Tangerine isn't your typical bank. They don't have brick-and-mortar branches. Their low overhead costs mean that they can pass along the savings to their customers through competitive mortgage rates.
Tangerine offers fixed-rate mortgages in 1, 2, 3, 4, 5, 7, and 10-year terms. Fixed mortgage rates are great for those seeking a predictable mortgage payment. Your interest rate will remain the same throughout the term of your mortgage.
Only one variable rate mortgage is offered by Tangerine, which comes in a 5-year term. With a variable rate mortgage, you can take advantage of a low-interest rate, but you also take on the risk that your interest costs could increase should Tangerine's prime lending rate increase.
All of Tangerine's mortgages are portable. Meaning if you move homes, you can transition your old mortgage to a new mortgage without penalty, maintaining the same interest rate, term, and principal amount.
Mortgage payment options
Tangerine allows clients to pay their mortgage payments in regular weekly, bi-weekly, monthly, and semi-monthly payments. For those wishing to pay off their mortgages a little quicker, Tangerine allows for accelerated weekly and accelerated bi-weekly payments.
Tangerine mortgage prepayment options
Making prepayments will help you pay off your mortgage sooner and save you on interest charges over the long run. With Tangerine, you can make prepayments towards your mortgage principal, of up to 25% every year.
You can also increase your regular mortgage payments by up to 25% on any payment date. Both the lump sum prepayment and increasing your mortgage payment can be done once a year.
Tangerine does not offer open term mortgages, but the generous prepayment allowances make closed term mortgages an attractive option for homeowners.
Tangerine Home Equity Line of Credit
A home equity line of credit allows you to use the existing equity you've built in your home to borrow additional funds at a very low-interest rate. Home equity lines of credit are useful for out of the ordinary, significant expenses such as home renovations, a vacation, or vehicle repairs.
With a home equity line of credit from Tangerine, you can borrow and pay back your loan at any time. You're only responsible for monthly interest-only payments towards the amount borrowed.
You only need to apply once for the home equity line of credit. So long as you don't exceed your credit limit, you can keep re-borrowing from your line of credit without having to complete paperwork.
Sometimes it can be hard to keep track of your home equity line of credit balance and the minimum interest payments for it. To help make things easier to manage, Tangerine offers a Fixed Payback Plan for the home equity line of credit. The plan enables you to make automatic interest and principal payments towards your line of credit without you having to do so manually.
You can apply for a home equity line of credit online. You don't need to be an existing Tangerine banking customer to apply. All you need is to open up a Tangerine online account.
Once you're ready to apply for a Mortgage with Tangerine, you can apply for a rate hold. A rate hold means that your interest rate will be guaranteed for 30 days. You don't need to complete a mortgage application for a rate hold. All you have to do is sign up for a Tangerine client account and set up an access PIN.
If fixed rates go up, you'll receive the original interest rate that you placed a hold on. If variable rates increase, you're guaranteed the spread between the Tangerine prime rate and the variable rate on hold.
A rate hold does not guarantee that you'll be approved for a mortgage with Tangerine. If you want more certainty, you'll have to apply for a mortgage pre-approval.
A mortgage pre-approval with Tangerine involves you filling out a complete mortgage application. The application will require you to provide personal and financial information as well as Tangerine performing a credit check on you. Once you're pre-approved for a mortgage, you'll know exactly how much you can borrow. A pre-approval also guarantees your interest rate for 120 days.
Tangerine Mortgage Account Manager
When you apply for a mortgage, you'll be connected with a Tangerine Mortgage Account Manager. The Mortgage Account Manager is your point of contact when it comes to anything that's mortgage-related with Tangerine.
Your Mortgage Account Manager can help you with the application process, renewing or refinancing your mortgage, and applying for a home equity line of credit.
Renew your Tangerine mortgage
Towards the end of your mortgage term, Tangerine will reach out to you with mortgage renewal options. You can select a new mortgage term, or you can contact Tangerine directly to go over your available options.
Mortgage renewal time is also an excellent period to go over mortgage options available with other financial institutions. You can search for mortgage rates online and compare them with the rates Tangerine is offering on your renewal. If you have any questions or would like to discuss your mortgage rates further, you can always contact your Tangerine Mortgage Account Manager.
What you'll need to apply for a Tangerine mortgage
To begin applying for a mortgage with Tangerine, you first need to open up a Tangerine client account online and fill out a mortgage application. To complete the mortgage application, you'll need to show proof of income, proof of down payment, provide documentation of your assets and liabilities, and be able to pass a credit check.
Tangerine was initially known as ING Direct Canada when it was founded in 1997 by the Netherlands based ING Group. In 2012, Scotiabank acquired ING Direct Canada and subsequently renamed the bank to Tangerine.
Tangerine is known for its low fee banking approach. They have no physical retail banking locations and operate entirely online. The bank is best known for offering no-fee chequing and savings accounts as well as other registered and non-registered financial accounts.