You may be thinking about shopping around for a mortgage. Tangerine offers a small array of mortgages for Canadians, including the Tangerine variable rate mortgage.
With one of the lowest mortgage rates around, the Tangerine variable mortgage is certainly enticing, and could save you a significant amount on your mortgage over time. On the other hand, it is variable, so your rate could go up unexpectedly. Also, Tangerine is an online only bank, which some may not be 100% comfortable with.
Tangerine closed variable rate mortgage features
Here’s what you can expect with a Tangerine variable rate mortgage.
Why You Want It
Get competitive mortgage rates + Flexible portability and prepayments.
Special Features
- Get a dedicated account manager once approved
- Can move to a new home penalty free
Eligibility
- Canadian resident or applied resident status
- Minimum credit score of 620 with no prior bankruptcies
- At least 3 months of full-time employment
Provinces
ALL
Mortgage Rates
Variable (Closed)
5 Year
4%
Features
Rate Type
Variable Closed
Pre-approval
Rate Guarantee (days)
120
Bank Prime Rate
4.45%
# Of Prepayments Allowed Per Year
See Issuer for Details
% Of Prepayment Allowed
25%
# Of Payment Increases Allowed Per Year
See Issuer for Details
Max Payment Increase Allowed
25%
Promotion Available
N/A
Promotion End Date
N/A
Tangerine closed variable rate mortgage rating: 4.1 stars
Tangerine variable mortgage has garnered 4.1 stars for one primary reason – it’s one of the lowest standard variable mortgage interest rates going, and it has been like that for quite a while.
We didn’t give this mortgage a full 5 stars, however, because it offers no welcome bonus or other promotional incentive. Other than, you know, having some of the lowest mortgage rates available to Canadians.
Rating methodology
To calculate our Genius Ratings, we compare the features of the account or product in question with other similar products in Canada. We give each feature a score out of 5 based on that comparison. Once we’ve rated all the features, we run them through our proprietary algorithm to produce a final rating out of 5.
Learn more about our rating methodology.
The pros of a Tangerine closed variable rate mortgage
It’s fairly obvious what Tangerine mortgages have going for them, but let’s cover the basics anyhow.
Pros
Low interest rates
At the time of writing, Tangerine’s variable mortgage rate is lower than many others. And this isn’t a special promotional rate…this is just what Tangerine is offering as their regular rate. And while mortgage rates are generally high across the board, this is on the lower end that we've seen.
Flexible prepayment options
If you get a Tangerine mortgage, you’ll have the option to pay it off more quickly in a couple of ways. First, you’ll have the option to make a bulk prepayment of up to 25% of your original mortgage amount every year. You’ll also be able to increase your mortgage payments by up to 25%, whenever you make a payment. If you’re able to do either or both of these things, you’ll be able to pay down your mortgage even more quickly. (But with interest rates this low, there’s probably better things you can do with that extra money…)
Portable mortgage
And if you decide to sell your house and buy another, you’ll be able to transfer your Tangerine mortgage over without any problems or penalties. This can save you a huge amount of money on mortgage prepayment penalties and whatnot, so it’s a nice feature to have in your pocket in case you need it.
The cons of a Tangerine closed variable rate mortgage
While Tangerine mortgages have some exceptional interest rates, there are a couple of things to keep in mind when opting for a Tangerine variable rate mortgage.
Cons
Only 1 type of variable mortgage available
Tangerine doesn’t offer a lot of flexibility with their variable rate mortgages. In fact, they offer one type of variable mortgage at one rate, and that’s it. If you’re in the market for anything more flexible than a 5 year closed variable rate mortgage, you’re going to have to find another bank.
Variable rates are…variable
While Tangerine’s current variable rate is low, it’s not guaranteed to stay that way. That’s what puts the variable in “variable rate,” after all. If mortgage rates go up and you have a variable rate mortgage, your mortgage payments will also go up. If you’re not a fan of rolling those dice or prefer a more predictable mortgage payment, you may want to take a look at Tangerine’s fixed rate mortgages (which also offer some excellent rates).
No promotions or other incentives
Tangerine doesn’t offer any special promotions or offers to entice you to take a closer look at their mortgage offerings, but…they really don’t have to. With rates as low as these, they’re sort of the ones to beat, unless you need a different level of flexibility, other mortgage features, or are looking to break your current mortgage. If you’re happy with a simple mortgage, Tangerine should be close to the top of your list, even without a welcome bonus.
Tangerine is an online-only bank
One of the major things to keep in mind with Tangerine is that they are an online-only bank. There are no Tangerine branches you can visit to speak with someone face to face about your banking or mortgage needs. For many people, this is fine – there’s a certain level of convenience being able to do everything online or over the phone. But for some, that sort of hands-off distance is outside of their comfort zone, which means Tangerine might not be the right bank for them.
Tangerine closed variable rate mortgage alternatives
Let’s see how Tangerine measures up to some other variable rate mortgage offerings available to Canadians.
 |  |  |  | |
|---|---|---|---|---|
| Account | Tangerine Closed Variable Rate Mortgage | nesto | Meridian Closed Fixed Mortgage | Alterna Closed Variable Rate Mortgage |
| Genius Rating | ||||
| Why You Want It | Get competitive mortgage rates + Flexible portability and prepayments. |  $350 GeniusCash + Get the lowest rate guaranteed + 150 day rate lock
| Get up to 5% cash back + Competitive rates and excellent customer service. | Flexible prepayment options + Fully digital mortgage process. |
| Mortgage Rates | Variable (Closed)
| Fixed Closed
| Fixed Closed
| Variable Closed
|
| Rate Type | Variable Closed | Fixed Closed | Fixed Closed | Variable Closed |
| Pre-approval | | | | |
| Rate Guarantee (days) | 120 | 150 | 120 | 120 |
| Bank Prime Rate | 4.45% | 4.45% | 4.45% | 4.95% |
| # Of Prepayments Allowed Per Year | See Issuer for Details | See Issuer for Details | Unlimited | See Issuer for Details |
Show More | ||||
| See rates & details See more Tangerine products Compare | I Want This Deal See more nesto products Compare | See rates & details See more Meridian Credit Union products Compare | Learn More See more Alterna products Compare |
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FAQ
Is a Tangerine mortgage good?
Tangerine offers some of the lowest mortgage rates available in Canada, so if you’re looking to save as much money as possible, Tangerine mortgages should definitely be on your comparison shopping list. That said, Tangerine is an online-only bank, so if you’re not comfortable with that, a Tangerine mortgage might not be best for you.
Is Tangerine a safe bank?
Tangerine is as safe as any other Canadian bank. They are regulated under the same laws, and their deposits are protected by CDIC coverage. Tangerine is also owned by Scotiabank, so there is a big traditional bank behind the scenes, which some may find reassuring.
Is Tangerine owned by Scotiabank?
It is. Tangerine originally launched as ING Direct in 1997, which was acquired by Scotiabank in 2012. It was relaunched as the online-only Tangerine Bank in 2014.
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
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