Desjardins Mortgage Rates
Current Desjardins discounted mortgage rates
Term | Interest rate |
|---|---|
4-year (fixed), closed | 4.64% |
5-year (fixed), closed | 4.64% |
5-year (variable), closed | 4.35% |
Source: www.desjardins.com
Current Desjardins posted mortgage rates
Term | Interest rate |
|---|---|
6-months (fixed), closed | 7.99% |
6 months (fixed), open | 9.75% |
1-year (fixed), closed | 6.09% |
1-year (fixed), open | 9.50% |
2- year (fixed), closed | 5.89% |
3-year (fixed), closed | 6.09% |
4-year (fixed), closed | 6.14% |
5-year (fixed), closed | 6.19% |
5-year (variable), closed | 4.70% |
6-year (fixed), closed | 6.39% |
7-year (fixed), closed | 6.49% |
10-year (fixed), closed | 6.99% |
Source: www.desjardins.com
Desjardins vs. mortgage rates at other Canadian banks
Compare Desjardins's current rates (in the tables above) to what the Big Six banks are offering (in the table below), to see where you might get a better deal.
3-Year Fixed | 4.57% | 4.41% | 4.59% | 4.43% | 6.05% | 4.524% |
3-Year Variable | 8.03% (open) | 4.42% | -- | -- | 6.10% | -- |
5-Year Fixed | 4.51% (insured) 4.66% (uninsured) | 4.21% (insured) 4.56% (uninsured) | 4.43% (insured) 4.63% (uninsured) | 4.32% (insured) 4.62% (uninsured) | 6.09% | 4.661% (insured) 4.661% (uninsured) |
5-Year Variable | 4.42% | 4.52% | 4.64% | 3.93% (insured) 4.23% (uninsured) | 5.15% | 4.561% |
Desjardins prime rate
Desjardins's prime rate is 4.70%.
The prime rate underpins variable-rate mortgage products. When the Bank of Canada adjusts its overnight rate, Desjardins's prime rate increases or decreases by the same amount.
Desjardins mortgage products
Most Desjardins mortgage products are standard fixed and variable rates with terms that range from six months to 10 years. Desjardins also has a few less common mortgages, like an annually adjustable rate mortgage.
» MORE: Read our full review of Desjardins' mortgage offerings
Desjardins mortgages: things to consider
Posted rates vs. special rates
Lenders often provide two sets of current mortgage rates: posted rates and special, or discounted, rates.
Desjardins posted mortgage rates
Posted rates are pre-discounted mortgage rates. Posted rates can be much higher than discounted rates, with the expectation that borrowers will negotiate them down.
Some lending experts believe lenders use posted rates to make borrowers feel a sense of satisfaction at getting a better deal. Others wonder if a higher posted rate allows banks to charge stiffer penalties if a person breaks their mortgage contract.
If you’re offered a posted rate at Desjardins, consider it the beginning of a negotiation. It’s also a great reason to compare offers from other lenders.
Desjardins special mortgage rates
Special rates are a lender’s posted rates that have already been discounted, including limited time offers. A special rate will be more in line with the rate you’re actually offered in most circumstances.
Desjardins doesn't share special rates for most of its posted rates. That doesn’t mean those posted rates are your only option, just that you'll need to more work to learn what they are.
Fixed vs. variable mortgage rates
When you get a mortgage from a lender like Desjardins, you’ll have to make an important choice between a fixed or variable mortgage rate.
Fixed mortgage rates
With a fixed-rate mortgage, your interest rate will remain the same for the duration of your mortgage term. If Desjardins offers you a 4% five-year fixed mortgage rate in 2025, for example, your rate won’t change until it’s time to renew your mortgage in 2030.
A fixed mortgage interest rate allows you to budget around a predictable monthly mortgage payment for years at a time. But if fixed rates fall during your mortgage term, the only way to take advantage is by breaking your mortgage contract and refinancing at a lower rate. Doing so can trigger steep mortgage prepayment penalties.
Variable mortgage rates
If you opt for a variable rate on your Desjardins mortgage, it could rise or fall many times during your term. When it rises, more of your monthly mortgage payment will go toward interest; when it falls, more will go toward the principal.
Variable mortgage rates have generally been lower than fixed rates. But when variable rates are driven upward by increases to lenders’ prime rates, it can put unexpected pressure on your finances.
From March 2022 to July 2023, for example, homeowners with variable-rate mortgages saw their rates increase 475 basis points. Since one basis point is equal to 0.01%, that means a borrower who secured a variable rate of 2.25% in January of 2022 would be paying 7% in July 2023. That’s not a common occurrence, but it highlights the risk of taking out a variable-rate mortgage during times of economic uncertainty.
Open vs. closed mortgages
Another consideration when getting a mortgage at Desjardins is whether to choose an open or closed mortgage.
With an open mortgage, you can increase your mortgage payments or even pay your mortgage in full at any time without penalty. A closed mortgage will impose annual limits on how much you can prepay your mortgage.
Choosing between open and closed mortgages is often a matter of cost. Open mortgages tend to come with much higher interest rates.
Rate vs. APR
When investigating a mortgage rate at Desjardins, it’s best to use the annual percentage rate (APR) provided rather than the interest rate itself. Desjardins only includes interest rates on its website; you'll need to contact Desjardins to get APR information.
APR includes any other fees that might be added to the cost of your mortgage. Factoring in APR gives you a more accurate estimate of your potential mortgage costs.
How to get the best mortgage rate at Desjardins
As a federally regulated lender, Desjardins uses the same lending criteria you'd see at a Big Six bank. That means being offered the best mortgage rates might require a little effort on your part, including:
Raising your credit score. A higher credit score generally means less risk for lenders like Desjardins, who can offer you a lower interest rate in return.
Making a larger down payment. If you can make a significant down payment, lenders will see that you prioritize home ownership and that they can loan you less money. Both scenarios mean less risk for Desjardins.
Lowering your debt service ratios. Low debt service ratios signal to lenders that your finances aren't already strained by ongoing debt.
Shopping around. Desjardins may not offer you the best mortgage rate. Finding the best deal means comparing the rates other lenders are offering.
Negotiating: Ask Desjardins if they can improve on a rate they’ve offered you. Let them know that you’ll consider what other lenders are offering before making a final decision.
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Clay Jarvis
Clay Jarvis
Clay Jarvis