Desjardins Mortgage Rates & Reviews
Desjardins Bank Background
The Desjardins Group was founded in 1900 by Alphonse Desjardins as a caisse populaires, which is a savings and credit co-operative, similar to a credit union. Desjardins is the largest caisse populaire and credit union in North America, with over 300 local branches and with over 1,000 points of service. Desjardins currently has over 7.5 million customers, with most located in Quebec and Ontario. Desjardin was originally founded in Levis, Quebec, and also has its headquarters there still, in addition to offices across Quebec and worldwide. In addition to retail banking, the Desjardins Group also offers several other financial products through their 20 subsidiaries, such as insurance, capital market services, wealth management, and venture capital funds. Desjardins is also active in 30+ developing countries through technical assistance programs and long-term based investments.
Desjardins Bank Fixed Mortgage Rates
The reason that a Desjardins fixed rate mortgage is more popular than a variable rate mortgage is because of the peace of mind it offers. With a fixed rate mortgage, even if interest rates rise, you will have the same Desjardins mortgage rate over your entire term. This gives you the ability to plan out how your mortgage balance will be reduced over your term, and gives you an added layer of certainty. Although a fixed rate mortgage will have the same interest rate over the entire term, you will face the possibility that when your mortgage term is finished, you may pay higher mortgage rates. Out of all fixed rate terms, the most popular is the 5-year fixed mortgage term. This gives you the peace of mind of having the same interest rate over a 5 year term, while not having to worry about renewing the mortgage other than at the end of the term.
| Term | Desjardins Rate | Canada's Lowest Rate |
|---|
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Desjardins Variable Mortgage Rates
A Desjardins variable rate mortgage gives you the ability to have a mortgage rate that will fluctuate along with the prime rate at Desjardins. This means getting a variable mortgage rate can be a good option if you are of the opinion that interest rates and mortgage rates will fall during your term. If this were to happen with a variable rate mortgage, your Desjardins mortgage rate would also fall. On the other hand, getting a variable rate mortgage will give you less control over your mortgage rate, meaning that if interest rates rise, so will your mortgage rate. This is why a fixed rate mortgage with Desjardins is more popular than a variable rate mortgage. A variable rate mortgage will still have the same Desjardins monthly mortgage payment regardless of what happens with your mortgage rate. The only difference in your monthly payments will be how much of the payment goes to interest on the mortgage, with more of your payments going to interest as your mortgage rate rises, and vice versa.
| Term | Desjardins Rate | Canada's Lowest Rate |
|---|
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Desjardins Posted Rates
Desjardins Posted Rates are the official rates used when calculating your mortgage break penalty, the fee you pay if you want to break or refinance your mortgage early. Your mortgage payment, interest, and stress test will be based on a different rate which is usually lower than the posted rate.
| Term Length | Desjardins Posted Rate |
|---|
Desjardins Mortgage Break Penalty
In situations that require you to break your mortgage contract before the term is up, you will be charged a mortgage break penalty. This can be because you want to pay off your mortgage sooner, change your mortgage terms, or refinance your mortgage with another lender. The table below shows how your mortgage break penalty will differ depending on the type of mortgage you have:
| Bank or Lender | Variable Rate Mortgage | Fixed Rate Mortgage |
|---|---|---|
 | 3 Months’ Interest | Greater of 3 Months’ Interest or the IRD amount |
Difference in interest payable due to the difference between your current mortgage rate and Desjardin’s current posted rate, less any rate discounts that you received.
To see how much you can expect to pay in prepayment charges, utilize the Desjardins mortgage penalty calculator below:
Desjardins Mortgage Prepayment Calculator
Are you looking to pay off your mortgage early? Or refinance the terms of your mortgage at a lower interest rate? Maybe you sold your home. Whatever the case, you most likely will have to pay a mortgage break penalty set by your lender. Whatever the situation, our calculator will help you determine the cost to break your mortgage so you can be confident about your mortgage decisions.
What is the remaining balance on your mortgage?
What is the term-length and type of your current mortgage?
What is your current mortgage interest rate?
If applicable, what was the rate discount you received when you signed your current mortgage agreement?
When did your current mortgage start?
Who is your current mortgage lender?
What is Desjardins's current interest rate for a 3-year fixed rate mortgage?
How is my mortgage penalty calculated?
Desjardins Prime Rate
The prime rate at Desjardins is important to know, as it is the foundation for which the interest rate on a mortgage is determined. The way that Desjardins will use the prime rate is by adding or subtracting a spread to the prime rate, which will leave you with the final interest rate on a lending product. Usually with a mortgage since it is secured by a home, your Desjardins mortgage rate will be calculated by subtracting a spread from the prime rate. Other lending products where the prime rate is used to determine your interest rate are:
Current Desjardins Prime Rate: 5.95%
Desjardins Prime Rate History
Desjardins History
Desjardins Mortgage Features
Desjardins mortgage protection insurance
For people looking to purchase a home, Desjardins offers monthly mortgage protection insurance for both life and disability coverages. Mortgage protection insurance can be a good way to give yourself peace of mind when taking out a mortgage, with this coverage paying some or all of your mortgage amount if you become disabled or pass away. Since there are only a few health questions required before getting coverage, this may be a good way to get life insurance coverage if you are ineligible, or can be a good way to just add more protection for your family. The cost of coverage will depend on the type of coverage you get, your age, and the size of your mortgage.
Desjardins prepayment features
Desjardins offers you multiple ways to pay off your mortgage sooner, including the following features:
Increase your payment frequency: Desjardins gives you the ability to choose how often you want to pay your mortgage, with the options of monthly, weekly, and bi-weekly payments. Even if you decide you want to speed up or slow down how frequently you pay your mortgage, Desjardins lets you change this at any time. By choosing weekly or bi-weekly payments instead of monthly, you will be making more payments towards your principal balance, meaning you will pay less interest over time.
Increase your payment amount: Every calendar year, you will be able to prepay up to double your monthly mortgage payment once. This will help you to reduce the time it will take to pay down your mortgage, and will also reduce your lifetime interest, considering that all of the extra payment amount will go directly to your mortgage balance.
Desjardins prepayment limit: Your yearly prepayment limit will be 15% of your original mortgage balance. Any prepayment towards your mortgage above this limit will trigger a prepayment penalty, meaning if you plan to pay down your mortgage balance very aggressively, an open mortgage may be a better option.
Desjardins Green Homes Program
For people looking to purchase or build a green home, which is a sustainable and energy saving house, Desjardins offers up to $2000 in cashback, a free monthly plan for 1 year, and free home assistance. The two programs that Desjardins uses to determine what homes qualify as green homes are certifications through Leeds Canada, or through the Energy Star Certified Homes program in Ontario. Besides just the benefit of getting cashback with the program, a green home can help reduce your carbon footprint, all while saving you money on energy bills.
Desjardins prepayment penalty refund
If you are to sell your home before your mortgage is paid off, it's likely you will have an initial mortgage break penalty. However, Desjardins offers the ability to get a full prepayment penalty refund when you apply for a new Desjardins mortgage within 90 days, only with the same terms however. If your new mortgage amount is equal or greater than your prior mortgage amount, you will have all your prepayment penalties refunded. If you apply for a smaller mortgage than your prior one, you will receive only a partial refund.
Other Desjardins Mortgage Products
Desjardins HELOC
As you build equity in your home over time by paying down your mortgage, a Desjardins home equity line of credit (HELOC) is a good way to utilize that equity. You can start to utilize up to 65% of your home equity once you have at least 20% equity in your home built up, meaning that every dollar you pay back from your mortgage amount after 20% will translate into money you can pull out through your HELOC. This makes a HELOC great for consolidating debts, doing home renovations, and for using for a down payment on a second property.
Desjardins rental property mortgage
Desjardins offers you the ability to purchase a rental property using residential rental property financing. Desjardins will consider both your needs and the quality and value of the building when determining your loan amount, while allowing you to use other properties in your real estate portfolio as collateral. You are able to get loan terms between 1 and 10 years, while choosing a fixed, variable, or a combined loan. As well, you will also be able to take advantage of the multi-project option Desjardins offers you, with the ability to re-borrow up to your initial loan amount, giving you more financial flexibility.
Desjardins hybrid mortgage
A Desjardins hybrid mortgage allows you to split up your mortgage into 2 or more loan tranches, which allows each co-borrower the ability to customize their interest rate, term, and payment frequency. This can be a great option if you are having family members pay part of the loan with you, or are purchasing a shared property. The ability to customize your payments to be different from other tranches of the loan gives everyone involved the flexibility to be able to get a loan for a property on the terms that are best for their situation.
Branch Locations
Desjardins has 313 caisse populaires and credit unions in the provinces of Quebec and Ontario, and also has 776 service centres. The main difference between a credit union and a caisse populaires is that a caisse populaires is a cooperative with members being people living in the same area or region, while a credit union is a cooperative but can be based on occupation rather than region. It is also noteworthy that Desjardins is the third largest financial sector employer in Canada.
Desjardins Structure
Desjardins has multiple business lines across financial services, including:
- Personal and business financial solutions: This includes financing solutions such as mortgages, credit cards, line of credits, as well as business and capital market services.
- Wealth management and health & life insurance: This division includes wealth products and services for consumer and group needs.
- Property and casualty insurance: This includes Desjardins home insurance, auto insurance, and other coverages to protect against damage.
Contact Desjardins
Besides meeting with a mortgage representative at your local Desjardins caisse populaires or credit union, you can contact a mortgage representative at the number 1-844-626-2476 for Canada and the US, and 514-745-9499 for the Montreal area. As well, you can apply for a mortgage through the online Desjardins mortgage application portal.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.