Tangerine

Tangerine is a bank with a twist. They operate completely from an online platform and have no physical branches. They like to call this new perspective on the future of banking “Forward Banking”. This lack of overhead that is a factor for many other banks frees them up to offer lower and more competitive rates. Tangerine started out as the ING Bank of Canada. Scotiabank acquired it from ING Groep in November 2012. Even in its previous guise, Tangerine was meant as a fresh alternative to traditional banks and this is reflected in their current name.

You can find all the latest update rates that are available for Tangerine mortgage products online on their website as well as their prime rate. To find out what rates you can qualify for, you should pre-apply and you will be made aware of your options. Tangerine can provide low and competitive rates due to their low overhead model.

Tangerine provides a very straightforward offering when it comes to their mortgage products. In fact, they only have one mortgage, called the Tangerine Mortgage, that can come in a variety of options with different features.

The main differentiation comes between the fixed rate and variable rate options for this mortgage.

• Tangerine Fixed Rate Mortgage: As it’s a fixed rate mortgage, this plan comes with the widest range of customization options and at very competitive rates. It’s available in 1, 2, 3, 4, 5, 7, and 10-year terms.
• Tangerine Variable Rate Mortgage: As there is some certainty involved in a variable mortgage, it starts at an even lower rate than the fixed rate mortgage. It’s only available in a 5-year term.

Other features of this loan:

• Rate hold: Can hold a rate for 120 days and reduces along with rates if they fall during that time.
• Dedicated mortgage account manager: You will have a dedicated account manager for your mortgage available at your beck and call.
• 25/25 prepayment option: You can increase your payments by 25% and make a 25% lump payment once a year on any regular payment date.
• Collateral charge mortgage: This is an alternative to a conventional charge mortgage. It’s registered against 100% of the property value instead of against the loan amount. This allows you to refinance and add Home Equity Lines of Credit without incurring legal costs in the future. However, there will be legal costs for transferring to another lender.

They also provide the following mortgage-related products:

• Home Equity Line of Credit: You can leverage the equity in your home to borrow at low rates if you have built up at least 35% of the equity in your home.
• RSP Loan

As a bank, Tangerine offers much more than just their mortgage products. All these products and services are provided completely online from their website:

• Savings account
• Chequing account
• Investment funds
• RSPs

• Guaranteed Investment (GIC)
• Credit card
• TSFAs
• RIFs

You need to create an account on the Tangerine website before you can initiate the application process. At the very least, you should be able to provide them with the following information:

• Mortgage amount
• Purchase price
• Property type
• Builder (if applicable)
• Annual property taxes

• Purpose (e.g. purchase, refinance, transfer)
• Down payment
• Dwelling style
• Property address

Find out more Canadian mortgage lenders: B2B Bank, Laurentian Bank, Tangerine, Street Capital, Scotiabank and others.