New online payment deferral requests for Credit Cards, Lines of Credit, Home Equity Lines of Credit (HELOC) and RSP Loans must be received by October 23, 2020. Please note we are no longer accepting new Mortgage payment deferral requests.
Commonly asked questions:
Can you offer relief on other types of Tangerine Accounts?
We may be able to offer you relief if you’re a Tangerine Client experiencing financial hardship as a result of COVID-19 and its impact on the economy. Please call us to discuss how we can help you.
How do I find out if I qualify for financial relief measures?
On a case-by-case basis, we’ll be working with Clients to help address financial hardships caused by COVID-19. If you or any member of your family has become unemployed or experiences a material reduction in income due to COVID-19, you may be eligible to qualify for relief measures. Please call us to discuss what type of solution we might be able to offer.
How does a Line of Credit or RSP Loan Payment Deferral Work?
Lines of Credit: On unsecured and secured Lines of Credit, you can defer up to 3 months of minimum payments. If you choose to defer your payments, interest will continue to accrue and will be payable once the deferral period is over. Please note that if you have optional life insurance on your Line of Credit, insurance premiums will continue to be charged and collected from your payment account during the Deferral Period in order to maintain your insurance coverage. If you have optional life insurance on your Account, insurance premiums will continue to be charged and collected from your payment account during the Deferral Period in order to maintain your insurance coverage.
RSP Loan: If you have an RSP Loan, you can defer up to 3 months of payments. If you choose to defer your payments, interest will continue to accrue, and the term of your Loan will be extended by the length of the deferral period.
What if I already deferred my Credit Card payments?
If you already contacted us asking for help, you’re covered and your deferral will include the reduced interest rate of 10.99% during the deferral period. You’ll receive an interest credit on your account reflecting that reduced interest rate in the month following each deferral period.
For Clients that requested a deferral in March or April 2020 you would have received that interest credit by the end of April.
How will Credit Card payment deferral impact the interest I’m charged?
If you choose to defer your Credit Card payment(s), any applicable interest will continue to accrue at your current interest rate on your outstanding balance and will be added to your Account.
However, we know this is a hard time for you, and as such we will reduce your interest rate to 10.99% on a temporary basis during the deferral period. This interest reduction will be reflected as an interest credit. You’ll receive an interest credit for every month that you defer payments, and you’ll see it on the following month’s statement.
What will happen once the deferral period is over?
This option is designed to provide temporary relief. When the deferral period is over, your usual minimum payments will be required. By deferring your payment, your balance will accrue interest.
Note that your temporary reduced interest rate of 10.99% will immediately return to the interest rate that applies to your Account when your deferral period ends.
This means that beginning in the month following your deferral period, your interest rate will increase back to the regular interest rate that applies to your Account, and this will be reflected on your first statement following the end of your deferral period.
For details on how minimum payments and interest are calculated, please refer to your Cardholder Agreement and Disclosure statement.
Payment deferral requests for mortgages are no longer available.
How does a Mortgage payment deferral work?
Requests for mortgage payment deferrals had to be received by Tangerine by September 30, 2020. Mortgage payment deferrals were available for customers experiencing hardship. If you obtained a mortgage payment deferral by September 30, 2020, this means you won’t be required to make regular payment on your Mortgage for up to 6 months. During the time your payments are deferred, interest will continue to accrue. This may have an impact on your amortization period. You’ll pay more interest over the life of your Mortgage, but a deferral can also help you with your short-term cash flow.
How can I figure out how much cash a Mortgage payment deferral would free up for me?
Because interest continues to accrue over the deferral period, a payment deferral means that you’ll pay more interest over the life of your Mortgage. However, having your payments deferred can help free up cash for you during the COVID-19 crisis. In the following example, by deferring Mortgage payments for 6 months, a total of $8,274 can be freed up (6 payments of $1,379) during that period.
How would a Mortgage payment deferral change my Mortgage balance and/or amortization?
In this example, deferring Mortgage payments for 6 months results in a total of $3,000 in additional interest, which would be added to the balance of the Mortgage as of its due date. This is based on an existing Mortgage balance of $200,000 at a 3.00% fixed interest rate, a deferral period of 6 months, and a remaining amortization of 15 years. The payment amount wouldn’t change, but the remaining amortization would be extended by 6 months as a result of payment deferral. The deferral would free up $8,274 for the Client.
Example, deferring Mortgage payments for 6 months
|Interest Rate 3.00%
||Start of Deferral Period
||End of Deferral Period
||203,018 dollars (plus 3,018 dollars of interest and accrued interest costs)
|Payment Amount (monthly)
||15 years 0 months
||15 years 6 months
|Total value of 6 payments deferred
These calculations are provided for illustration only, and are not intended to provide financial advice. The costs associated with deferring your Mortgage payment(s) will vary based on the specifics of your Mortgage. The calculations assume a constant interest rate for the entire amortization period, but actual interest rates will vary over the amortization period. Mortgage life insurance premiums related to the Mortgage will still be collected from your payment account during the deferral period to maintain insurance coverage. Property tax payments must also be paid to the municipality as they become due, and if the Mortgage payment includes an amount for property taxes, this amount will continue to be collected during the deferral period.
Update: We'll give you a credit to reimburse you for the interest charged on top of the deferred interest that is added to your principal balance during the Deferral Period. The amount of this credit will be based on your Mortgage balance and your interest rate. We'll apply the credit amount to your Mortgage Account within 6 months of the end of your Deferral Period or will deposit the credit amount to your Mortgage payment account if your Mortgage has been discharged by that point. You won't need to do anything to obtain this credit. Based on the above example, the credit amount would be $18.18.
Will deferring payments have an impact on my credit score?
Deferred payments as part of Tangerine’s COVID-19 relief measures will not be reported to the credit bureaus as missed payments so they will not impact your credit score as a traditional missed payment might. However, your credit score is based on many factors, including the balance owing on your Tangerine product, and is unique to you. If you have questions about your credit score or how it is calculated, you can visit TransUnion at www.transunion.ca or Equifax Canada at www.equifax.ca.
How can I get my Mortgage back on track afterwards?
You can make prepayments to get you back on track, if you haven’t already fully used your annual prepayment options (i.e. lump sum prepayment of up to 25% of your Mortgage balance from the start of your term, and increased regular payments of up to 25% of the payment amount from the start of your term)
You can make an additional Mortgage payment at renewal to decrease your amortization.
You can request an amortization decrease and return to the amortization you had before payment deferral.
If I’ve already withdrawn more than the reduced 2020 annual minimum amount, will I be able to re-contribute up to the original amount?
The CRA won’t allow you to re-contribute back into your RIF if you already withdrew more than the reduced 2020 annual minimum amount before March 18, 2020.
What should I do if I want to continue receiving the unreduced annual minimum amount for 2020?
Changes to your RIF Savings Account 2020 annual minimum Payment Amount can be made by logging in and going to ‘Move Money’. If you have a RIF Investment Fund Account or you have questions, please give us a call.
Where can I find my original unreduced annual minimum RIF Payment Amount for 2020?
Your original annual minimum RIF Payment Amount for 2020 was sent to you in the 2020 RIF information letter you would have received in the first quarter of 2020.