Tangerine Mortgage Rates - How to Save Money
Many Canadian banks are offering tangerine mortgage rates to prospective buyers. Tangerine is actually a orange type of citrus that is used to produce citrus fruit juice. When the juice is extracted from the oranges, it produces a light and sweet juice, which is used for making juices, teas and medicines. The mortgage rates offered for these special type of mortgages have been cut by many different Canadian banks because of the rising demand for these mortgages.
Historically, many big banks in Canada were reluctant to loan money to people on high incomes, such as people with credit cards and chequing accounts. In fact, in the past, it seemed like Canadians with chequing accounts were not worthy borrowers, since chequing was associated with a bad credit rating. In the past, people with bad credit were labeled as 'high-risk'. However, with the advent of Tangerine mortgage rates in late 2006, many big banks started offering variable-rate mortgages for high-risk individuals such as people with credit cards and chequing accounts.
Variable-rate mortgages are similar to conventional adjustable-rate mortgages, except they come with a rate that changes according to the Bank of Canada's base rate. If you plan to purchase a new home or refinance your existing home, the key to getting the lowest interest rates may be to get a variable rate mortgage with a low initial rate. If you have good credit and a long and profitable investment history, you can often refinance your home equity at a lower interest rate than you would get with a variable-rate mortgage. Since variable interest rates may change according to the Bank of Canada base rate, you should make sure to get pre-approved for a variable rate mortgage if you want to secure your home equity.
A few things to keep in mind when refinancing your home include making sure that you know your financial situation well before you shop for a new mortgage. The last thing you need is to get loaned money that you cannot pay back. Take some time to think about whether you have enough equity built up in your home and if you will be able to make your payments each month with your current interest rate. A great way to determine whether you have enough money available to pay back your mortgage is to use a current mortgage calculator or work with a mortgage broker to estimate your monthly income. Using either of these calculators can help you determine what you will need to qualify for the tangerine mortgage rates you are interested in.
If you have poor credit, you may be better off getting a fixed-rate mortgage rather than an adjustable-rate mortgage. Some mortgage brokers will offer fixed-rate interest-only and fixed-rate chequing mortgages to people who have less than perfect credit. If your credit score is poor, however, you may be better off avoiding fixed-rate loans and choosing a low-interest variable-rate loan. This may save you more money over the life of the loan. Remember, though, that even though a bank or other lender will offer low-interest rates on their fixed-rate or chequing mortgages, they may charge more in fees and finance charges than the low-interest rate you will qualify for from an online loan site or a fixed-rate bank. In addition, the amount of money you save on fees and finance charges through a low-interest rate mortgage will not be as much as the amount you would save by opting for a variable-rate or interest-only mortgage.
If you want to learn more about finding the best mortgage interest rate, be sure to speak with a mortgage broker. These professionals understand the complex details of the mortgage market and how lenders decide which mortgage interest rate offers the most value for their borrowers. You can learn more about selecting the right mortgage interest rate for you, the exact cost of your new mortgage, the lenders who offer these low rates, and other useful mortgage facts by speaking with a mortgage broker. When it comes to saving money, shopping for new housing is a big decision. Be sure to do your homework and research tangerine mortgages before making a final decision on what type of mortgage is right for you!