Tangerine Mortgage Preapproval: What You Should Know (2024)

If you’ve ever dreamed of owning your perfect home, then you know that securing a mortgage plays a pivotal role in making that dream a reality. As a first-time homebuyer, navigating the complex world of mortgage approval can be overwhelming, with lenders’ requirements varying significantly.

Mortgage pre-approval is a powerful tool that helps you know how much mortgage you may be eligible for based on your personal information, financial details, and credit history. With a mortgage pre-approval, you can determine what price range you should look at when shopping for a home, factoring in your down payment and pre-approved mortgage amount.

Tangerine is one of the most popular mortgage lenders in Canada. But is there a Tangerine mortgage preapproval?

Due to its competitive mortgage rates, many people like you wonder if Tangerine offers mortgage pre-approval. If yes, what are the requirements and processes? Read on to learn more about how Tangerine Mortgage Preapproval can simplify the path to homeownership.

Does Tangerine Offer Mortgage Pre-approval?

No, Tangerine does not offer mortgage pre-approval. Instead, they provide a service called “Mortgage Rate Hold,” which allows you to secure a mortgage rate for up to 120 days without requiring a full mortgage application or financial information like a credit check.

If you are already a Tangerine client, you can apply for the rate hold directly. However, if you are not a Tangerine client, you must sign up with them first and then request the Mortgage Rate Hold.

How Tangerine Mortgage Rate Hold Works

Tangerine’s Mortgage Rate Hold feature empowers you to lock in a favourable mortgage rate for up to 120 days from the date of application. Whether you prefer the stability of a 5-year fixed rate or the flexibility of a 10-year variable rate, Tangerine offers a diverse array of competitive mortgage rates in Canada.

With the Mortgage Rate Hold, you can secure the peace of mind that comes with a fixed-rate mortgage as Tangerine guarantees the rate during the hold period. However, it’s important to note that variable rates may change without prior notice. 

So, if you’re seeking a reliable and predictable rate for your future home purchase or refinancing needs, Tangerine’s Mortgage Rate Hold can be an excellent option.

How to Apply for Tangerine Rate Hold

To apply for the Tangerine Rate Hold, follow these steps:

• Existing Tangerine Clients: If you are already a Tangerine client, you can directly apply for the rate hold.
• New Tangerine Clients: If you are not a Tangerine client yet, sign up for a Tangerine account to be eligible for the Mortgage Rate Hold. You can easily complete the sign-up process in less than 10 minutes.
• Rate Hold Application: Once signed in as a Tangerine client, access the Tangerine mortgage rate hold application page. The application process for the rate hold is simple and streamlined, and you won’t need to provide your personal and financial information.

By following these steps, you can secure a mortgage rate with Tangerine for up to 120 days without completing a full mortgage application or undergoing a credit check.

What Is Mortgage Preapproval?

Mortgage pre-approval is a crucial step in the home-buying process that provides you with an estimate of the mortgage amount you qualify for based on your financial information and credit history. This valuable document helps you determine your budget, streamlines the home-buying process, and gives you an advantage as a serious buyer.

You must provide your chosen lender with your personal and financial information to obtain a mortgage preapproval. This may include your Social Insurance Number (SIN), pay stubs, tax returns, and other relevant documents. The lender will use this information to assess your creditworthiness and financial stability.

Once the lender reviews your application and performs a credit check, they will issue a preapproval letter detailing the maximum mortgage amount you qualify for. This pre-approval is typically valid for a limited period, usually up to 90 days, depending on the lender.

Pros of Mortgage Preapproval

• Allows you to compare and find the best mortgage rates available in the market.
• It streamlines the home-buying process by eliminating unnecessary steps and delays that may occur when applying for a mortgage directly.
• Some lenders, like Tangerine, offer the option to lock in mortgage rates for a specified period, often up to 120 days. This can protect you from potential interest rate increases during that time.

Cons of Mortgage Preapproval

• Each mortgage preapproval application involves a hard inquiry on your credit report, which can temporarily lower your credit score
• A mortgage preapproval does not guarantee a mortgage. The final approval will depend on factors such as the property appraisal and any additional documentation required.
• The pre-approval is valid only for a specific period. If you don’t find a suitable property or complete the purchase within this timeframe, you may need to restart the application process, which could impact your credit score again.

Overview of Tangerine Mortgage

Tangerine Mortgage is one of Canada’s best mortgage options, offering low rates and a fast, hassle-free application process. It has gained popularity among Canadians seeking a cost-effective alternative to traditional big banks and private lenders, thanks to its competitive rates and fees. As a result, Tangerine has amassed an impressive client base of over 2 million individuals across different parts of Canada.

Tangerine operates with minimal overhead costs as an online-only financial institution, which allows it to offer borrowers some of the lowest interest rates in the industry. This cost-effectiveness translates into significant customer benefits, making it an attractive choice for homebuyers.

One of the key advantages of Tangerine Mortgage is its straightforward application process. You don’t have to navigate complex procedures on your own. A dedicated Mortgage Account Manager can assist you throughout the application journey, ensuring a smooth and stress-free experience.

Key Features of Tangerine Mortgage

• Low Rates: Tangerine Mortgage boasts some of the industry’s lowest and most competitive flexible and variable mortgage rates. To top it off, these interest rates are guaranteed for up to 120 days through Tangerine’s Rate Hold or preapproval feature. This provides peace of mind for borrowers, knowing that their rate will remain secure while they proceed with their home search.
• Flexible Repayment Options: Tangerine offers borrowers highly flexible mortgage repayment options, allowing them more control over their finances. With options like a 25% annual lump sum prepayment and the ability to contribute up to 25% of the annual mortgage payment amount, borrowers can accelerate mortgage payoff and save significantly on interest costs over time.
• Mortgage Calculators: Uncertain about your monthly mortgage payments? Tangerine’s mortgage payment calculator comes to the rescue, clarifying what to expect. Additionally, the bank offers a mortgage amount estimator, which can be useful when planning your budget and determining your borrowing capacity.
• Mortgage Account Managers: Tangerine understands that applying for a mortgage can be daunting for many. To make the experience more user-friendly, the bank assigns each applicant a dedicated Mortgage Account Manager. This professional guide assists applicants from start to finish, ensuring that all necessary steps are covered, and questions are answered.

Tangerine Mortgage Rates

Tangerine mortgage rates are one of the industry’s lowest. The following table presents Tangerine variable and fixed mortgage rates as of the time of writing this article:

READ MORE: Tangerine Mortgage Rates

Final Thoughts on Tangerine Mortgage Preapproval

As a prospective homebuyer, securing a mortgage preapproval is crucial to your homeownership journey. 

While there is no Tangerine Mortgage preapproval, you can still check out the Tangerine Mortgage Rate Hold and enjoy the convenience of low rates, flexible repayment options, and expert guidance from a dedicated Mortgage Account Manager. 

Take advantage of this cost-effective alternative to big banks and private lenders, and gain peace of mind knowing your interest rate is guaranteed for up to 120 days.