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Compare Tangerine Mortgage Rates in Canada

Compare Tangerine Mortgage Rates in Canada

Tangerine was initially launched under the name ING Direct Canada in 1997. In 2012, it was acquired by Scotiabank, and the name was changed to Tangerine. Today, Tangerine is a subsidiary of Scotiabank operating as a virtual full-service bank that can be accessed online, mobile, or over the phone. 

It’s crucial to compare rates before securing a mortgage. Shopping around for a better rate can result in savings not only in your mortgage payment but also in the interest-carrying costs over the term of your mortgage. If a lender consistently offers lower-than-average rates, this could translate into significant savings over the entire life of your mortgage.

Key Highlights

  • Tangerine is a full-service virtual bank operating as a subsidiary of Scotiabank.
  • Tangerine mortgage interest rates are competitive compared to big banks and other mortgage lenders.
  • Your personal financial situation often determines whether you qualify for the lowest rates.

Compare Big Bank Rates in Canada

Compare the average big bank mortgage rates to nesto’s in the easy-to-view table below. This enables you to quickly compare nesto average rates against the average rates from the big 6 banks in Canada. 

At nesto, we do all the work to ensure you always get the best rate upfront!

Why look at the rates offered by the Big 6 Banks in Canada? The 6 biggest banks in Canada hold over 70% of all mortgages and, as such, are the starting points of most mortgage originations in the country. Their combined average simplifies the expectation and trend for Canadian mortgage rates.

nesto’s lowest vs Big Bank insured mortgage rates

Results

For the month of May, 2024, nesto’s average mortgage rate can be compared against the big 6 banks in Canada. Choose nesto and see how much you can save.

How to Compare Bank Rates From Big Banks

Shopping rates on your own can be a tiresome task. nesto has simplified the entire process by providing all the information you need in one place. When comparing rates, be sure to measure mortgage products based on term length and type. For instance, if you’re looking at a fixed-rate mortgage, compare banks’ five-year offerings, then three-year offerings, etc., instead of just the rate without the term length being offered.

If you’ve found a rate from a lender other than nesto, we guarantee that we’ll match or beat it, or you could get $500. Learn more about nesto’s low rate guarantee.

Tangerine Prime Rate

Tangerine Bank’s prime rate is used as the basis for many of Tangerine’s products, including variable-rate mortgages, lines of credit and HELOCs. The prime rate is typically combined with a spread depending on the product and its associated risk to make up the final interest rate that you’re offered. As of May 20, 2024, Tangerine’s prime rate is

Here’s a snapshot of the Prime Rate over time.

*Most Recent Prime Rate Shown
Source: BankofCanada.ca

Tangerine 5-Year Fixed and Variable Rate History

When shopping around for mortgage rates, it’s important to compare against historical trends. These trends will provide insights into how Tangerine interest rates have changed over the years. Tracking these trends can help you make predictions on where interest rates may be headed in the future. 

We don’t track historical rates for Tangerine Bank. 5-year mortgage rates are the most popular rates to choose from in Canada, with people switching between fixed or variable depending on market trends. Analyzing the Bank of Canada chart below can help you choose between a fixed or variable 5-year mortgage rate in today’s market.

Bank of Canada Policy & Prime Rate Changes

Date of Rate ChangeKey Overnight Target Rate (%)Change (%)Bank Prime Rate
June 2, 20100.30%0.25%2.50%
July 21, 20100.55%0.25%2.75%
September 9, 20100.80%0.25%3.00%
January 28, 20150.65%-0.15%2.85%
July 16, 20150.50%-0.15%2.70%
July 13, 20170.75%0.25%2.95%
September 7, 20171.00%0.25%3.20%
January 18, 20181.25%0.25%3.45%
July 12, 20181.50%0.25%3.70%
October 25, 20181.75%0.25%3.95%
March 5, 20201.25%-0.50%3.45%
March 17, 20200.75%-0.50%2.95%
March 30, 20200.25%-0.50%2.45%
March 3, 20220.50%0.25%2.70%
April 14, 20221.00%0.50%3.20%
June 2, 20221.50%0.50%3.70%
July 14, 20222.50%1.00%4.70%
September 7, 20223.25%0.75%5.45%
October 26, 20223.75%0.50%5.95%
December 7, 20224.25%0.50%6.45%
January 25, 20234.50%0.25%6.70%
March 8, 20234.50%0.00%6.70%
April 12, 20234.50%0.00%6.70%
June 7, 20234.75%0.25%6.95%
July 12, 20235.00%0.25%7.20%
September 6, 20235.00%0.00%7.20%
October 25, 20235.00%0.00%7.20%
December 6, 20235.00%0.00%7.20%
January 24, 20245.00%0.00%7.20%
March 6, 20245.00%0.00%7.20%
April 10, 20245.00%0.00%7.20%

The Bank of Canada (BoC) will deliberate on the Key Overnight Target rate twice every quarter. Generally, all lenders will follow suit to keep their prime rates in line with the country’s Big Six chartered banks. Find below the most recent changes to the baseline, which impacted the spreads to the Big Banks Prime Rates.

You can find more details about the Key Overnight Target Rate and an explainer from the Bank of Canada (BoC) if you want to learn more about this topic.

Tangerine Mortgage Product Offerings

Tangerine offers standard fixed and variable-rate mortgage options. Their mortgages offer the following features:

  • 120-day rate hold,
  • Flexible pre-payment options,
  • Portable – if you move, you can take your mortgage with you penalty-free.

Tangerine Annual Mortgage Prepayment

This annual prepayment privilege enables you to prepay up to 25% of your original mortgage principal on a closed mortgage in one lump sum payment every year. This will help reduce your interest payments and pay down your mortgage much faster, as all of the lump sum amount will go towards the mortgage principal balance. 

Important: if you choose to pay down more than 25% of your mortgage principal annually, you’ll be charged a penalty. 

Canadian Bank Closed Mortgage Prepayment Amounts
Tangerine25%
RBC10%
TD Bank15%
Scotiabank15%
BMO20%
CIBC20%
National Bank10%

Renewing With Your Bank vs. Renewing With nesto 

Did you know you can renew with nesto and save up to $18,542* in your first term? 

The renewal process often raises questions like whether you have to renew your mortgage with your current bank. The answer is no. You have the choice to renew at the end of your term with any bank or mortgage provider. If you’re looking to renew your current Tangerine Bank mortgage with another lender, it’s worth shopping around for better rates and terms that suit your situation before you renew with the same lender.

At nesto, we’re the pioneer in online mortgage lending in Canada. Our mission is to offer a positive, empowering and transparent property financing experience, simplified from start to finish. To do that, we provide you with the best mortgage deal possible in an unbiased, commission-free way.

To get started and renew your mortgage with nesto, find the best rate available near you at least a couple of months before your current term expires. Once you’ve found a solution you’re interested in, get in touch, and a mortgage advisor will help you. 

Renewing with nesto is a simple, transparent, hassle-free process that could save you thousands over the lifetime of your mortgage compared to the Big Banks. 

Frequently Asked Questions

Here are some of the commonly asked questions about Tangerine’s mortgage offerings and rates recently. 

Are Tangerine rates lower than other big banks?

Tangerine Bank mortgage rates are competitive among other big banks and lenders but aren’t consistently lower or higher. Your personal financial situation will often determine whether you qualify for the lowest rates. If, for instance, your credit score is low or you’re carrying a higher debt load, you’re not likely to qualify for the best rates. In order to get the best mortgage rate and the features you desire, it’s important to compare mortgages from multiple providers, which is exactly what nesto does on your behalf.

What are the benefits of choosing a smaller lender?

There are often several benefits to getting your mortgage through a smaller lender. For one, big banks have stringent policies regarding who qualifies for their mortgage products, so smaller lenders are more likely to listen to your story before determining if you qualify for a mortgage. Also, smaller lenders often only specialize in mortgages, so they won’t try to cross-sell you on other products. This makes them more focused on ensuring you always have the best mortgage experience possible.

How do I get a mortgage with Tangerine?

You can get a mortgage at Tangerine by going through their virtual channels and requesting a call or applying online.

Final Thoughts

While Tangerine may be a good choice for many mortgage borrowers, it’s always important to compare your options whenever you’re in the market for a new mortgage, renewal or refinance. 

Your nesto mortgage expert will ensure you get the very best rate every time.