Tangerine Mortgage Rates
Tangerine started out as ING Direct Canada as an offshoot of the ING Group, but was purchased in 2012 by Scotiabank and now operates as a subsidiary of Scotiabank as an online direct bank. Tangerine offers mutual funds, mortgages, GIC, and no-fee savings and chequing accounts. As a digital company, Tangerine is known for its competitive offers including relatively low-interest rate mortgage loans.
What are the different kinds of rates?
Banks offer different kinds of rates for mortgages. All of Canada’s big banks usually offer three types of rates: inflated rates used for reference, contracts and penalties; rates they post online or advertise to customers as special or limited time offers; and rates they keep quiet about but are the best rates, normally these are negotiated.
Posted rates are the rates used to determine penalty fees. As a result, these rates are inflated to get banks more money. No one should be paying posted rates on a mortgage. They are used for reference and customers can negotiate or seek out better advertised rates from there.
Special Mortgage Rates
Special mortgage rates are the rates normally offered online or in advertisements as a limited time deal. They are not limited time deals or special in any way. They are lower than posted rates and generally what mortgage specialists can outright offer clients. However, smaller lenders and credit unions generally offer more competitive rates than the big banks’ special rates. Seeking out comparable loans and their rates can put you in a position to ask for even better rates than what big banks offer you as “special”.
Discretionary rates are the good deals big banks can offer, but won’t openly tell clients about or advertise publicly. Banks will offer these rates to preferred clients, because they don’t want to lose their business. Ultimately, banks want business and any client, preferred or not, can negotiate rates down into the discretionary category.