Compare Desjardins Mortgage Rates in Canada
Compare Desjardins Mortgage Rates in Canada
The Desjardins Group is a Canadian financial cooperative and North America’s largest federation of credit unions. 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.
Key Highlights
- Desjardins is a financial cooperative with 7.5 million members nationwide
- Desjardins collateral charge mortgage product allows for an unlimited number of components, which can be set up as a line of credit, term loan, mortgage, HELOC, credit cards, or overdraft protection that are secured by your home.
- Desjardins offers 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 offers a 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 with comparable terms 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
Bank Rates
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.
*Toronto rates
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 offers a fairly small selection of mortgages and caters 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, for the reasons previously given, this is not composed of publicly traded shares in the company. The cooperative’s headquarters and founding location is in Levis, Quebec.
Desjardins Prime Rate
As of Thursday, April 18, 2024, Desjardins’ prime rate is
*Most Recent Prime Rate Shown
Source: BankofCanada.ca
Desjardins 5-Year Fixed and Variable Rate History
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.
We don’t track historical rates at Desjardins. 5-year mortgage rates are the most popular rates in Canada, with people switching between fixed and variable depending on market trends. Analyzing the chart from the Bank of Canada below can help you choose between a fixed or variable 5-year mortgage rate in today’s market.
Bank of Canada Policy & Prime Rate Changes
| Date of Rate Change | Key Overnight Target Rate (%) | Change (%) | Bank Prime Rate |
|---|---|---|---|
| June 2, 2010 | 0.30% | 0.25% | 2.50% |
| July 21, 2010 | 0.55% | 0.25% | 2.75% |
| September 9, 2010 | 0.80% | 0.25% | 3.00% |
| January 28, 2015 | 0.65% | -0.15% | 2.85% |
| July 16, 2015 | 0.50% | -0.15% | 2.70% |
| July 13, 2017 | 0.75% | 0.25% | 2.95% |
| September 7, 2017 | 1.00% | 0.25% | 3.20% |
| January 18, 2018 | 1.25% | 0.25% | 3.45% |
| July 12, 2018 | 1.50% | 0.25% | 3.70% |
| October 25, 2018 | 1.75% | 0.25% | 3.95% |
| March 5, 2020 | 1.25% | -0.50% | 3.45% |
| March 17, 2020 | 0.75% | -0.50% | 2.95% |
| March 30, 2020 | 0.25% | -0.50% | 2.45% |
| March 3, 2022 | 0.50% | 0.25% | 2.70% |
| April 14, 2022 | 1.00% | 0.50% | 3.20% |
| June 2, 2022 | 1.50% | 0.50% | 3.70% |
| July 14, 2022 | 2.50% | 1.00% | 4.70% |
| September 7, 2022 | 3.25% | 0.75% | 5.45% |
| October 26, 2022 | 3.75% | 0.50% | 5.95% |
| December 7, 2022 | 4.25% | 0.50% | 6.45% |
| January 25, 2023 | 4.50% | 0.25% | 6.70% |
| March 8, 2023 | 4.50% | 0.00% | 6.70% |
| April 12, 2023 | 4.50% | 0.00% | 6.70% |
| June 7, 2023 | 4.75% | 0.25% | 6.95% |
| July 12, 2023 | 5.00% | 0.25% | 7.20% |
| September 6, 2023 | 5.00% | 0.00% | 7.20% |
| October 25, 2023 | 5.00% | 0.00% | 7.20% |
| December 6, 2023 | 5.00% | 0.00% | 7.20% |
| January 24, 2024 | 5.00% | 0.00% | 7.20% |
| March 6, 2024 | 5.00% | 0.00% | 7.20% |
| April 10, 2024 | 5.00% | 0.00% | 7.20% |
The Bank of Canada (BoC) will deliberate on the Key Overnight Target rate twice every quarter. Generally, all lenders will follow suit to keep their prime rates in line with the country’s Big Six chartered banks. Find below the most recent changes to the baseline, which impacted the spreads to the Big Banks Prime Rates.
You can find more details about the Key Overnight Target Rate and an explainer from the Bank of Canada (BoC) if you want to learn more about this topic.
Desjardins Mortgage Products
Desjardins doesn’t offer a wide range of mortgages but 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.
Versatile Line of Credit
Desjardins also offers a home equity line of credit or HELOC. HELOCs are revolving lines 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
Increasing your monthly repayment frequency or paying a lump sum on your mortgage 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 provides a number of different mortgage payment increase options, including:
Increasing your payment amount
Desjardins’ closed mortgages (fixed and variable rate) allow you to increase your regular payments with no charge or penalty. You may do so once per calendar year, up to double the amount set out in your mortgage contract. For example, if your regular payment is $1500 a month, you can increase it 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 considerable 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
Under certain conditions, Desjardins allows you to increase the frequency of your mortgage payments at any time without charge or penalty. They offer a mortgage payment calculator to help you determine how changing your payments will affect your mortgage.
Desjardins Annual Mortgage Prepayment
Desjardins offers 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 | |
|---|---|
| RBC | 10% |
| TD Bank | 15% |
| Scotiabank | 15% |
| Desjardins | 15% |
| BMO | 20% |
| HSBC | 20% |
| National Bank | 10% |
Renewal Process With Big Banks
Desjardins has an online mortgage renewal process and the potential to renew your mortgage in their app. You can also renew your mortgage in person or on the phone with Desjardins. 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 and stay with your current one, and you may 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 ensure 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. Products and special offers vary, and it really depends on your individual financial profile what kind of rate you can get instead of a one-size-fits-all approach to 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 the AccèsD, Desjardins customer platform. Finally, Desjardins has a list of what you need to apply for a mortgage, and recommends you have these ready before meeting one of their advisors.
Final Thoughts
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.
