Compare Desjardins Mortgage Rates in Canada
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Compare Desjardins Mortgage Rates in Canada
The Desjardins Group is a Canadian financial cooperative and the largest federation of credit unions in North America. It has the largest regional presence in Quebec, but is well established in Ontario and further afield. In this comparison post, we’ll show you where Desjardins mortgages stack up against their competitors, and the solutions, rates, and special features Desjardins mortgages offer.
- Desjardins is a financial cooperative with 7.5 million members nationwide
- Desjardins current promotional rate on a 5-year fixed term mortgage is 5.39%, and their 5-year variable rate is currently 5.20%, as of October 3rd.
- Desjardins offer popular mortgage products, including open and closed fixed-rate mortgages, variable rate mortgages, and a home equity line of credit (HELOC).
Compare Desjardins Mortgage Rates
Desjardins provide a fairly basic range of mortgages with reasonable rates, including closed and open fixed-rate mortgages, variable rate mortgages, and a line of credit. The best way to compare Desjardins mortgage rates with other lenders is to review multiple rates at once, and find the lowest rate possible. Doing your research at this stage can help you save thousands over the course of your mortgage.
Top 5 Big
The top 5 big bank rates all in one easy-to-view table. See their rates then beat their rates (or get $500) with nesto’s low rate guarantee.
How to Compare Bank Rates from Big Banks
Lenders like Desjardins have their own lending criteria and terms, and every major lender will have their own too. Comparing rates from big banks, credit unions, and other alternative lenders can be time consuming, but it’s important you find a rate that works for you and a product that suits your needs. Desjardins offer a fairly small selection of mortgages and cater to a specific customer type. It’s always worth comparing mortgage rates from lenders like Desjardins to the rest of the market to make sure you get the best deal.
One of the best ways to compare mortgage rates from big lenders is to check out several at once. Not only can we help you compare the best rates available, but we also lend directly. If you’re comparing mortgages from Desjardins, or any other lender, and you find a rate you like, nesto will guarantee to match or beat it (or you could get $500).
Desjardins Overview & Stock Information
The Desjardins Group is a cooperative bank, made up of a network of caisses. Every caisse is a cooperative owned by its members, and as such, Desjardins is not publicly listed on a stock exchange. Desjardins does offer a Canadian Preferred Share Index ETF (Exchange Traded Funds) for its investment clients, which is listed as DCP.TO, however this is not composed of publicly traded shares in the company for the reasons previously given. Desjardins’ current CEO and President is Guy Cormier, who has served in the role since 2016. The cooperative’s headquarters and founding location is Levis, Quebec.
Desjardins Prime Rate
Desjardins’ Prime Rate in Canada is currently 5.45%, effective October 3, 2022. Prime rates are used by lenders like Desjardins as a basis for a number of products, like mortgages and credit cards, or lines of credit. Prime rates are usually combined with a positive or negative spread (e.g. +/- 1.5%) for most lending products, depending on the level of risk that a customer represents. Most lenders in Canada have the same prime rate. Here’s an overview of the Prime Rate in Canada over time.
Desjardins 5-Year Fixed and Variable Rate History
Desjardins currently have a promotional rate on a 5-year fixed term mortgage of 5.39%, and a 5-year variable rate of 5.20%. These are in line with lenders like Simplii Financial and others. Here’s a graph showing Desjardins 5-year fixed rates and variable rates over the last few years. Typically, Desjardins has followed prevailing trends in interest rates, including interest rate cuts during the peak of COVID-19 and subsequent rate hikes after the pandemic.
Desjardins Mortgage Products
Desjardins doesn’t offer a wide range of mortgages but instead a smaller selection of conventional mortgage products with reasonable rates. This includes open and closed fixed-rate mortgages, variable rate mortgages, and a line of credit. Here’s an overview of Desjardins’ current mortgage rates and products, as of October 3rd.
Fixed rate mortgages
Desjardins offer a range of closed fixed-rate terms with various rates, starting from 6 months and going all the way up to 10 years.
Closed Fixed-rate Mortgage
Desjardins also offers a couple of open fixed-rate mortgage rates. Open mortgages allow you more flexibility if you want to pay your mortgage off early, either with a lump sum or increasing your regular payments. Closed mortgages penalize you if you pay off all or some of your mortgage early, and have lower rates as a result, since lenders prefer that you stay locked in to the terms of the mortgage until it expires fully. Open mortgages also have much shorter terms generally, as there’s less risk for a lender if you pay off the full amount within the given timeframe since this makes up part of the product’s structure. Here are Desjardins’ current open fixed-rate mortgages.
Open Fixed-Rate Mortgage
Variable rate mortgages
Here are Desjardins’ current variable rates.
Variable Rate Mortgage
|“5-in-1” Yearly Rate Resetter (closed)||5.79%|
Versatile line of credit
Desjardins also offers a home equity line of credit, or HELOC. HELOCs are a revolving line of credit that are based on your home’s equity, and work in the same way as a credit card in that you only pay interest on what you spend each month.
With Desjardins’ HELOC, once you’ve paid down 20% of the value of your home, you can borrow up to 65% of your home’s determined value. However, the total balance on your Desjardins line of credit and any tied loans (car, RRSP, credit cards) cannot exceed 80% of the value of your home. It’s recommended that you apply for a HELOC when you apply for or renew a mortgage, and many lenders can help you bundle these together.
Desjardins Mortgage Payment Increases
When you increase your monthly repayment frequency or pay a lump sum on your mortgage, this is known as mortgage prepayment. Each lender, including Desjardins, will have their own prepayment allowances you can make each year. Additional payment amounts are applied directly to your mortgage balance, which can help you cut down the cost of your mortgage and interest over time.
Desjardins provide a number of different mortgage payment increase options, including:
Increasing your payment amount
Desjardins’ closed mortgages (fixed and variable rate) will let you increase the amount of your regular payments with no charge or penalty. You may do so once per calendar year, up to double the amount of your regular payment as set out in your mortgage contract. For example, if your regular payment is $1500 a month, you can increase the amount to $3000 once per calendar year. You can also reduce your payment back down to the initial amount afterwards.
Make accelerated payments
Desjardins will also let you pay down your mortgage quicker through accelerated payments, which effectively means you’ll make one additional payment each year. This will reduce your amortization period and could help you save a considerable amount in interest. Desjardins will let you make payments weekly or every 2 weeks, which adds up to the equivalent of one extra monthly payment.
Increase your payment frequency
Desjardins allow you to increase the frequency of your mortgage payments any time with no charge or penalty, under certain conditions. They offer a mortgage payment calculator to help you figure out how changing your payments will affect your mortgage.
Desjardins Annual Mortgage Prepayment
Desjardins offer up to 15% annual mortgage prepayment on some of their mortgages. This is considered fair and in line with a number of other major lenders in Canada, like TD and Scotiabank.
|Canadian Bank Closed Mortgage Prepayment Amounts|
Renewal Process with Big Banks
Desjardins has an online mortgage renewal process you can use and also the potential to renew your mortgage in their app. You can also renew your mortgage in person or on the phone with Desjardins directly. Generally when your mortgage is due for renewal, you’ll receive a notice of renewal a few months before your term expires, with an attached interest rate. However, you don’t necessarily have to renew with Desjardins or any other lender for that matter. Renewal is an opportunity to renew with another lender as well as stay with your current one, and you may be able to find a much better rate if the market has changed. The best way to renew your mortgage with big banks and other conventional lenders is to compare mortgage rates and make sure you’re getting the best rate out there. At nesto, we’ll you find the best rates on your mortgage, and we also lend directly. To learn more about renewing your Desjardins mortgage with nesto, check out how to renew your mortgage in Canada.
Frequently Asked Questions (FAQ)
Here are the most frequently asked questions about Desjardins’ mortgages and rates.
Are Desjardins rates lower than other big banks?
Desjardins do not have significantly lower rates than other big banks but they are competitive. Desjardins current promotional 5-year fixed rate mortgage has an interest rate of 5.39%, and their 5-year variable rate is 5.20% (as of October 3, 2022). These are in line with other lenders like Simplii, and even CIBC’s mortgage rates.
What are the benefits of choosing a smaller lender?
Desjardins is a small but reputable lender, and is a respected financial cooperative. Smaller lenders sometimes provide greater flexibility to their customers and a more bespoke range of mortgage products, but these often come with a higher interest rate. Generally, although Desjardins is a smaller lender than CIBC, TD, or other Big Five banks, their rates are reasonable and their mortgage products are fairly flexible.
How do I get a mortgage with Desjardins?
Desjardins have a few ways to kick off the mortgage application process. On their website, their mortgage application process will prompt you to either give them a call or schedule a meeting with one of their advisors. If you’re a Desjardins member, you will be able to apply for pre-approval by logging in to AccèsD, Desjardins customer platform. Finally, Desjardins has a list of what you need to apply for a mortgage, and recommend you have these ready before meeting one of their advisors.
Desjardins is a relatively large lender with over 7.5 million members across Canada. With the bulk of their business in Quebec, followed by Ontario, Desjardins is a well-known financial co-op with a number of caisses around the country. While their rates are reasonably competitive, it’s worth checking out more mortgage rates to find the best one possible. At nesto, we can help you compare the best rates out there and we also lend directly. If you’re with Desjardins and looking to renew with a different lender, or you’re looking for your first mortgage, talk to our team today.
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