Tangerine Mortgage Preapproval Alternatives 2024
With the frequent fluctuations of variable and fixed mortgage rates in Canada, getting mortgage preapproval will help you prepare better.
Besides, different mortgage lenders have varying requirements. With a mortgage preapproval, you can be sure of your eligibility for a particular mortgage.
Canadians like you have been asking whether Tangerine offers mortgage preapprovals. This is obviously due to the bank’s competitive mortgage rates that attract over 2 million Canadians.
With a dedicated Mortgage Account Manager that guides you through the mortgage application process, it’s worth asking whether Tangerine has mortgage preapproval.
This article discusses everything you need to know about Tangerine mortgage preapproval and its alternatives.
What is a Mortgage Preapproval?
A mortgage preapproval is a free letter, document or certificate that covers the estimate of the mortgage amount and terms you qualify for.
Usually, your personal information, credit history, pay stubs, assets information, tax returns and other financial information are used to draft your mortgage preapproval.
The mortgage preapproval also comprises the home price, mortgage interest, mortgage type and the expiry date of the approval (usually from 60 to ranging 130 days).
With this information, you don’t have to guess about the overall mortgage costs. You can also compare different lenders’ mortgages through preapprovals before making a final decision.
However, you have to be careful when comparing different mortgage preapprovals as most lenders run a hard credit check during the process. The consequence? Hurting your credit score.
Overall, a mortgage preapproval doesn’t guarantee the actual cost of your mortgage. Some lenders may not also offer you a mortgage even after approving you a mortgage preapproval.
Pros and Cons of Mortgage Preapprovals
The following are the major pros and cons of mortgage preapprovals you need to consider before applying:
Pros
- Lock-in interest rates: You can lock in a mortgage rate for up to 130 days through mortgage preapproval, helping you avoid sudden interest increases.
- Competitive rates: A mortgage preapproval helps you shop for a competitive rate by comparing multiple lenders’ rates.
- Mortgage costs: With a mortgage preapproval, you don’t have to guess the cost of the perfect mortgage for you, saving you time and effort.
- Facilitate mortgage application: A mortgage preapproval proves to your lender that you’re serious about getting a mortgage. This will facilitate the application process and help you get fast mortgage approval.
Cons
- Hurt credit score: Most mortgage lenders run a hard credit check when assessing your mortgage preapproval application. Each hard check can hurt your credit score up to 36 months.
- No guarantee: A mortgage preapproval doesn’t guarantee your qualification for mortgage approval. You may be disqualified due to your negative credit change, sudden change of employment and opening more lines of credit.
Does Tangerine Offer Mortgage Pre-approval?
Short answer, there’s no Tangerine mortgage preapproval!
Unfortunately, Tangerine doesn’t disclose any information on when it will start offering mortgage preapprovals.
But as the bank continues to expand its competitive services, it’s likely to have Tangerine mortgage preapproval in the future.
In the meantime, you have to rely on the Tangerine mortgage rate hold if you’re looking to lock in a mortgage rate for a particular period.
Else, you should consider the Tangerine mortgage preapproval alternatives I discussed towards the end of this article.
What is Tangerine Mortgage Rate Hold?
This is a rate holder that locks in a mortgage rate for up to 120 days. With this, you can be sure of your mortgage interest just like with a mortgage preapproval.
Unlike mortgage preapproval lenders, Tangerine doesn’t run a credit check or require your financial information to approve a mortgage rate hold.
That said, the Tangerine mortgage rate hold is only guaranteed for Tangerine fixed rates. There’s no guarantee for Tangerine variable rates as they can change due to prime rate fluctuations.
Nevertheless, Tangerine has competitive fixed and variable mortgage rates that are worth securing.
The interesting part is that you can request for the Tangerine mortgage rate hold even if you’re not a Tangerine client. All you need is to create a Tangerine account without completing the full application.
Existing Tangerine clients can apply directly through the “Secure Your Rate ” tab on their Tangerine dashboard.
Why Apply for a Tangerine Mortgage?
There are so many reasons why it’s worthwhile to consider Tangerine mortgages against other mortgages in Canada. The major reasons are discussed below.
1. Competitive Rates
While Tangerine mortgage rates are not among the lowest in Canada, they compete considerable with the rates of other banks. Getting a competitive mortgage rate means saving more from monthly payments and clearing off your debt faster.
From fixed to variable mortgage rates, Tangerine offers one of the competitive rates shown below (valid as of May 6, 2024):
| Mortgage Term | Rate |
| 5-Year Variable Mortgage | 6.80% |
| 1-Year Fixed Mortgage | 7.29% |
| 2-Year Fixed Mortgage | 6.39% |
| 3-Year Fixed Mortgage | 5.49% |
| 4-Year Fixed Mortgage | 5.49% |
| 5-Year Fixed Mortgage | 5.44% |
| 7-Year Fixed Mortgage | 6.00% |
| 10-Year Fixed Mortgage | 6.40% |
You may want to consider a variable rate if you’re comfortable with market fluctuations or can predict prime changes.
But if you have a low-risk tolerance, it’s better to go with a fixed mortgage rate to avoid paying more than you bargained for.
2. Multiple Payment Options
Unlike other mortgage lenders, Tangerine allows you to pay your mortgage weekly, biweekly, monthly, or semi-monthly.
You can also facilitate your payment by making accelerated weekly and bi-weekly payments.
This gives you the flexibility of paying off your debt based on your cash flow.
3. Dual Mortgage Prepayment Options
You can pay off your mortgage ahead of time without any penalty with Tangerine’s dual mortgage prepayment options. The dual options are:
- Lump-sum prepayment of 25% of the total mortgage amount annually
- 25% increase of the regular mortgage payment annually.
With these, you can pay off your mortgage super fast and save costs.
4. Tangerine Mortgage Account Manager
Filing a mortgage application can be confusing and demanding for beginners. Thankfully, Tangerine Mortgage Account Manager exists to help you through the whole process.
Once you applied for a Tangerine mortgage, you will be assigned a dedicated Mortgage Account Manager as your assistant.
Besides guiding you through the mortgage application process, the Tangerine Mortgage Account Manager will also assist you with the renewal or refinancing of your mortgage and HELOC.
5. Home Equity Line of Credit
Should you decide to use your mortgage to secure a line of credit in the future, you can apply for the Tangerine home equity line of credit (HELOC).
With a HELOC, you can take a recurring line of credit based on your home equity.
HELOC exposes you to below-average interest rates and terms that you can’t easily find elsewhere.
With your home being used as a guarantee, it’s essential to use a HELOC as your last loan option. This is especially more important if you don’t have a consistent cash flow to meet your mortgage monthly payments alongside the HELOC interest payment.
However, Tangerine allows you to pay the full HELOC interest and principal at once through its Fixed Payback Plan.
READ ALSO: Tangerine High-Interest Savings Account Review
Tangerine Mortgage Preapproval Alternatives
| Name | Validity Period |
| BMO Mortgage Pre-approval | 130 days |
| Scotiabank Mortgage Pre-approval | 60 – 130 Days |
| RBC Mortgage Pre-approval | 60 – 120 Days |
| TD Mortgage Pre-approval | 120 Days |
Since there’s no Tangerine mortgage preapproval, you have no option but to consider its alternative if you’re not comfortable with its mortgage rate hold.
The following is a brief overview of some of the Canadian banks that offer mortgage preapprovals.
1. BMO Mortgage Pre-Approval
The Bank of Montreal (BMO) offers a mortgage preapproval with up to 130 days validity period. You can apply online, through a mobile Mortgage Specialist or in-person at any of the BMO branches.
When applying for a BMO mortgage preapproval, prepare information about your:
- Assets (such as your bank accounts, vehicles, investment and real estate)
- Valid ID (such as a passport or driver’s license)
- Liabilities (such as credit cards and loans)
- Employment (such as a letter from your employer and a recent pay stub)
Once you applied, BMO will respond to your application within a day or two.
2. Scotiabank Mortgage Pre-Approval
Scotiabank allows you to secure a mortgage preapproval for 60 to 130 days. The interesting thing is that you can access your basic mortgage needs on the Scotiabank eHome.
Like BMO, Scotiabank also requires your personal information, assets and employment information when applying for the mortgage preapproval.
The application process is entirely online and you can download your preapproval BMO approves your application.
3. RBC Mortgage Pre-Approval
RBC Mortgage Pre-Approval secures you a mortgage rate and term for up to 120 days.
When applying for RBC Mortgage Preapproval, you will be required to provide your reason behind the application. This range from:
- Real estate purchasing
- Refinancing existing RBC mortgage
- Switching mortgage to RBC
After picking one of the above options, you can then proceed to provide your home and contact information and select your mortgage specialist.
4. TD Bank Mortgage Pre-Approval
Finally, TD Bank also offers mortgage approval accessible online, in-person or by phone. You can secure a TB mortgage preapproval for up to 120 days.
When applying for the mortgage, TD will require your personal information, assets information and employment information.
Once you meet the eligibility, TD will send you a mortgage pre-approval certificate as evidence of approving your application.
The interesting part is that applying for a TD Mortgage Pre-approval online will not impact your credit score.
And even if you don’t have a credit history, you can apply for a TD Mortgage Pre-approval. This is ideal for new Canadians or permanent residents with below 5-year residency status.
What to Do After Getting a Mortgage Pre-approval?
Once you get a mortgage rate preapproval, it’s time to decide whether to go with the lender or its alternative.
If you’re not comfortable with the mortgage rate and terms, you can apply for as many preapprovals as possible. But remember, multiple mortgage preapprovals can hurt your credit score.
After settling for a particular mortgage preapproval, it’s time to start preparing ahead of the expiry date. Once the preapproval expires, the rate and terms become void.
As a result, you need to start preparing for your down payment and your required documents as soon as you settled for a mortgage preapproval.
Since your lender will run a credit check when accessing your application for the actual mortgage, you need to be mindful of your credit utilization as it can change your mortgage rate and terms.
READ ALSO:
Bottom Line
The bottom line is that there’s no Tangerine mortgage preapproval but there’s a Tangerine mortgage rate hold which also secures mortgage rates for up to 120 days.
But if you’re not comfortable with the Tangerine mortgage rate hold, choose from the above alternatives.
When narrowing your selection, consider the mortgage rate, mortgage amount and down payment.
If you need more help in choosing the best mortgage preapproval in Canada, please leave a comment below.
READ MORE: Tangerine Credit Card Promotions Review
FAQs on Tangerine Mortgage Preapproval
Does Tangerine have pre-approval?
No. Tangerine doesn’t offer preapprovals on mortgages at the moment. However, it offers an alternative product known as mortgage rate hold which secures a mortgage rate for up to 120 days.
Is Tangerine a good mortgage lender?
Tangerine is a good mortgage lender due to its competitive mortgage rates, and flexible payment and prepayment options.
In addition, Tangerine has a dedicated Mortgage Account Manager that assists mortgage users with mortgage applications, renewal and refinancing.
Can you negotiate mortgage rates with Tangerine?
There’s no section on the Tangerine website on negotiating mortgage rates. However, you may negotiate a Tangerine mortgage rate if you contact Tangerine and explain your situation to them.
Can lender deny loan after pre-approval?
Sure! A lender can deny you a pre-approval after approval due to your negative credit change, sudden change of employment and opening more lines of credit.
How long are mortgage Preapprovals good for Canada?
Usually, mortgage preapprovals are valid between 60 to 130 days in Canada. This is good enough as it allows you to compare different options and prepare for the actual mortgage application.
Does mortgage pre-approval impact your credit?
It depends on your mortgage lenders. However, most mortgage lenders run a hard credit check when assessing your mortgage preapproval application. This can hurt your credit score for up to 36 months.
Have more questions on Tangerine mortgage preapproval? Drop them in the comment below.
